Italy will provide 15 million euros ODA to Viet Nam in the next three years. — VNS Photo

HCM CITY (Biz Hub) — The Italian government has pledged to change ODA incentives in Viet Nam from the public sector to the private sector in the years ahead, with investment pegged at 15 million euros in the next three years, the Italian Ambassador to Viet Nam Lorenzo Angeloni said during an Italy – Viet Nam business forum held in HCM City on Wednesday.

The ODA capital will target private small- and medium-sized enterprises in the manufacturing and services sectors.

Angeloni said Italian businesses had paid more attention to the private business sector and they hope there will be more opportunities for cooperation and investment.

He said Viet Nam had an abundant workforce and competitive labour costs that were attractive to Italian businesses.

Italian businesses are impressed with the potential of Viet Nam, as it has become a dynamic industrial production centre in Asia.

Le Thanh Liem, deputy chairman of HCM City People's Committee, said Italy and Viet Nam would enhance two-way trade to US$5billion by 2016 from $3.5 billion this year.

Liem said the city would create favourable conditions for foreign investors, including Italian enterprises to seek investment and trade opportunities.

The forum also gave businesses an opportunity to seek partners and enhance the "strategic partnership" between Italy and Viet Nam established in 2013.

Ho Xuan Lam, deputy director of Investment and Trade Promotion Centre, said he had encouraged foreign investors to invest in the finance, banking, insurance, logistics, IT and communications, health and education sectors.

The city has 17 industrial parks and export processing zones covering a total area of 4,063 ha. In addition, six other industrial parks covering an area of 2,089 ha are expected to be set up by 2020.

The city has also committed to offering preferential policies to attract foreign investment at these parks. — VNS