Following the PM's visits to Belgium and the European Commission, and his meeting with the leaders of European countries on the sidelines of the sixth ASEAN-Europe Meeting (ASEM-6) in Helsinki, Finland, in September last year, this visit is expected to create a breakthrough in the Vietnam-Italy relationship, said Nguyen Manh Dung, assistant to the Foreign Minister and Head of the Foreign Ministry's Section for Europe.

The visit is aimed at boosting the economic, investment and trade relations between the two countries as well as their localities.

As scheduled, the two sides will discuss four agreements on bilateral cooperation in the fields of tourism, small-and medium-sized enterprise development, vocational training, education and culture, and an agreement on cooperation between Hanoi and Lazio region of Italy. These documents are expected to be signed in April 2007 during the Italy Month in Vietnam.

The diplomatic ties between Vietnam and Italy were established on March 23, 1973 and have made remarkable progresses since early 1990s. After an official visit to Vietnam by Italian Foreign Minister G. De Michelis in December 1989, the two countries have continued exchanging delegations.

Mr Dung said, Italy has actively supported Vietnam's cooperation with the European Union at international forums and its normalisation of relations with international financial, commercial and monetary organisations.

Italy was one of the first European countries to resume and develop economic cooperation with Vietnam. Some Italian syndicates have been operating effectively in Vietnam, such as Technip Italy with its project to build the Phu My Fertiliser Plant, Danieli Officina with a steel project, Fiat Iveco with a project to set up the Mekong Automobile Joint Venture, or Pirelli with the Hanoi-Ho Chi Minh City fibre optical cable project.

Over recent years, two-way trade volume has constantly increased, from US$320 million in 1996 to 700 million euros in 2005 and 870 million euros in 2006. Vietnam imports from Italy leather, chemicals, transportation and construction equipment, sanitary wares, medical equipment and household commodities. It exports to Italy footwear, coffee, aquatic produce, textile and garment, fine art and handicraft products.

Italy now ranks ninth among EU countries and 31st among all countries investing in Vietnam with 22 projects capitalised at US$55.9 million.

In 1997, Vietnam and Italy signed an agreement on the implementation of a US$60 million Official Development Assistance (ODA) sum granted by Italy. However, only some projects have been approved by the Italian Government so far.

This year, Italy offers Vietnam 42.15 million euros in ODA, including 4.05 million euros in non-refundable aid, and 38.1 million euro in preferential loans. 77 percent of Italy's ODA capital will be used to support social activities. Human resource development will receive 5 percent, production development and marketing - 12 percent, and poverty reduction - 6 percent.

Since the signing of an agreement on cultural cooperation between the two countries in 1990, the Italian Government has annually given a number of long-term and short-term scholarships to Vietnamese students and assisted Vietnam in organising seminars, exhibitions and film shows.

VOVNews/VNA