Viet Nam-Italy economic cooperation: SCIC helps forge new partnerships in Rome

ROME, Italy, October 24-25, 2024 - As part of the working visit to Italy from October 24-25, 2024, the delegation from the Commission for the Management of State Capital at Enterprises (CMSC), led by Deputy Chairman Nguyen Canh Toan, held meetings with SACE S.p.A., CDP Group, and SIMEST, as well as visited the Vietnamese Embassy in Italy.

The Vietnamese business delegation included Mr. Nguyen Quoc Huy, Board Member and Chief Executive Officer of the State Capital Investment Corporation (SCIC), along with representatives from Airports Corporation of Viet Nam (ACV), MobiFone Corporation (MOBIFONE), PJCO Insurance Corporation (PJCO), and Bao Minh Insurance Corporation (Bao Minh). SACE was represented by Ms. Michal Ron, Chief International Business Officer, along with other business leaders.

CDP was represented by Ms. Cristina Morelli, Head of CDP delegation and Head of Sovereign, Financial Institutions and Corporate Department, and Mr. Francesco Masera, Head of Business, Governance and Partnership Promotion Department.

SIMEST was represented by Mr. Carlo De Simone, Head of International Business Development.

Mr. Duong Hai Hung, Ambassador Extraordinary and Plenipotentiary of the Socialist Republic of Viet Nam to Italy, also attended the meetings.

Working session with SACE and MoU signing ceremony between SCIC and SACE

On the afternoon of October 24, 2024, the CMSC delegation met with the Italian credit export agency SACE.

CMSC Deputy Chairman Nguyen Canh Toan presents a souvenir to Ms. Michal Ron -Chief International Business Officer, SACE

SACE S.p.A. is Italy's government export credit and investment insurance company established in 1977. Headquartered in Rome, it operates under the supervision of Italy's Ministry of Economy and Finance. SACE specializes in providing financial and insurance solutions for Italian businesses, particularly small and medium-sized enterprises (SMEs), to support their international market expansion.

SACE provides credit insurance, investment guarantees, and financial solutions to minimize risks for Italian businesses engaged in export and investment activities. The company also participates in multilateral organizations such as OECD and Berne Union to promote regulations and standards in the export credit insurance industry.

During the meeting, Ms. Michal Ron, Chief International Business Officer of SACE, noted that Viet Nam's rapid economic development and important role in global industrial chains has made it a major potential partner for Italy.

Ms. Ron assessed that Viet Nam has great potential and serves as a gateway to the Southeast Asia region. Italian businesses have been exporting many products to Viet Nam. Notably, since the EU-Viet Nam Free Trade Agreement (EVFTA) came into effect in August 2020, there have been breakthroughs in trade development between the two countries. Thanks to EVFTA, export turnover has increased by 10% annually, particularly in light industrial machinery, agricultural machinery, and pharmaceuticals.

SACE has opened a representative office in Viet Nam and is considering investment activities in many of Viet Nam's export strengths such as food and beverages, especially coffee and agricultural products, goods, electronics, logistics, and healthcare.

Mr. Nguyen Quoc Huy, Board Member, General Director of SCIC and Ms. Michal Ron representing the two organizations in signing the MOU

Regarding the MoU signing with SCIC, Ms. Michal Ron stated that SACE and SCIC are aiming towards mutual development goals. SCIC is considered a crucial partner for SACE in supporting trade development and investment with Vietnamese enterprises.

During the meeting, Deputy Chairman Nguyen Canh Toan explained that CMSC, established in 2018, functions as the state ownership representative for 19 corporations and groups operating across 16 economic and technical sectors. This includes 7 joint-stock companies with state controlling ownership and 12 enterprises with 100% state ownership.

Speaking about the delegation's composition, which includes SCIC, ACV, MOBIFONE, Bao Minh Corporation, and PJICO, Deputy Chairman Toan emphasized that these are all leading state-owned enterprises operating in vital economic sectors such as transportation, aviation, telecommunications, and finance. He expressed confidence that these enterprises aim to learn from international experience to continue innovating state capital management and corporate governance methods, demonstrating their role in leading economic components and contributing to the government's macroeconomic objectives.

CMSC Deputy Chairman Nguyen Canh Toan in discussion with Ms. Michal Ron - Chief International Business Officer, SACE during the working session

SCIC, established in 2005, is a 100% state-owned enterprise and serves as one of the government's effective tools for managing and investing state capital in businesses. SCIC operates under a professional financial investment organization model and is among Viet Nam's leading enterprises in terms of owner's equity. The corporation maintains an extensive international partnership network with sovereign wealth funds across various regions and territories worldwide. "The MoU signing ceremony between SCIC and SACE is a significant event that establishes a strong foundation for partnership between the two groups and contributes to developing the 50-year friendship between Viet Nam and Italy," Deputy Chairman Toan emphasized.

Mr. Nguyen Quoc Huy, Board Member, CEO of SCIC and Ms. Michal Ron - Chief International Business Officer, SACE in discussion during the working session

During the working session, representatives from SCIC and SACE discussed and agreed upon the contents of the Memorandum of Understanding. SCIC believes this MoU will positively contribute to the delegation's overall results and mark a meaningful beginning for strong partnership development between both sides. This also serves as a favorable foundation for SCIC and SACE to identify and promote more cooperation opportunities. SCIC hopes that through this newly established cooperation mechanism with SACE, they will attract more Italian investors to participate in SCIC's divestment process while creating attractive investment opportunities for Italian businesses and investors.

Later that afternoon, Deputy Chairman Nguyen Canh Toan and the CMSC delegation visited the Vietnamese Embassy in Italy. On this occasion, he presented gifts and expressed wishes for the embassy staff to continue fulfilling their duties entrusted by the Party and State, while hoping the embassy would provide increased support for Vietnamese enterprises, particularly CMSC-affiliated companies, in connecting with Italian businesses for investment and trade.

The Delegation's Meeting with CDP Group and SIMEST Company

On the afternoon of October 25, on behalf of the working delegation, CMSC Deputy Chairman Nguyen Canh Toan thanked CDP and SIMEST partners for taking the time to meet with the delegation during their working visit to Italy.

CMSC Deputy Chairman Nguyen Canh Toan presents souvenirs to representatives of CDP Group and SIMEST

Ms. Cristina Morelli, CDP delegation head and Head of Sovereign, Financial Institutions and Corporate Department, introduced CDP as a crucial financial institution of the Italian Government, established in 1850 with the mission to support economic development through funding infrastructure projects and sustainable development. As of 2023, CDP manages total assets of approximately 400 billion euros, supporting thousands of Italian businesses through long-term loans to promote sustainable economic development.

CDP provides various financial services including infrastructure project lending, financial support for small and medium enterprises (SMEs), and funding for green initiatives in renewable energy. The organization also participates in multiple multilateral organizations to promote international cooperation in sustainable development.

Currently, CDP is focusing on promoting sustainable energy transition in Italy and globally, while strengthening its presence in international markets like Viet Nam to explore new investment opportunities in infrastructure and renewable energy.

During the meeting, Mr. Carlo De Simone, Head of International Business Development at SIMEST, explained that as a CDP subsidiary established in 1991, SIMEST specializes in supporting Italian businesses in their international market expansion.

SIMEST has supported thousands of Italian businesses through loans for international expansion, export credit support, and capital investment in companies. The company participates in the European Development Financial Institutions (EDFI) network and collaborates with leading international financial institutions.

SIMEST focuses on supporting Italian businesses in penetrating and expanding international markets, particularly in strategic regions like Asia, where Viet Nam is considered one of the top priority targets.

CDP and SIMEST expressed their desire to strengthen cooperation in areas such as renewable energy, green technology, agriculture, transport infrastructure, and banking-finance. Both organizations demonstrated their commitment to further expanding and deepening this cooperation in the future.

CMSC Deputy Chairman Nguyen Canh Toan speaking at the working session with CDP and SIMEST

After hearing about the potential and cooperation opportunities with CDP and SIMEST, CMSC Deputy Chairman Nguyen Canh Toan noted that CMSC currently manages 19 leading Vietnamese enterprises operating in sectors including energy, electricity, aviation, and maritime. Notably, accompanying the delegation were many senior leaders from corporations and groups ready to listen and acknowledge Italian investors' interests in the Vietnamese market. The CMSC delegation expressed their desire for CDP and SIMEST to share information and actively coordinate in identifying potential investment project opportunities in these sectors.

SCIC, as a 100% state-owned enterprise, currently manages a divestment portfolio of over 100 companies operating across various economic sectors. To accelerate the state enterprise equitization process and enhance Vietnamese enterprises' competitiveness, SCIC welcomes Italian funds and investors like CDP and SIMEST to explore and participate in SCIC's divestment process. SCIC will provide detailed information about their annual capital sales plan to CDP and SIMEST based on partner interest. SCIC also hopes CDP and SIMEST can serve as effective bridges between SCIC and potential Italian investors interested in SCIC's state capital divestment process in Viet Nam.

Emphasizing during the meeting, CMSC Deputy Chairman Nguyen Canh Toan stated that CMSC always aims to support Vietnamese enterprises and Italian partners in promoting trade and investment across all sectors. The delegation is very willing to serve as a bridge helping CDP and SIMEST access and communicate with relevant ministries, agencies, and localities, as well as introduce them to suitable and capable enterprises to jointly examine and study investment possibilities in the Vietnamese market.

Deputy Chairman Nguyen Canh Toan, on behalf of the delegation, respectfully invited CDP and SIMEST's leadership and colleagues to visit and work with CMSC and CMSC-owned enterprises during their upcoming working visits.