This chapter examines Italy’s development cooperation in Southeast Asia through the ASEAN–Italy partnership, with a focus on the strategic and operational role of the Italian Agency for Development Cooperation (AICS). It explores how Italy aligns bilateral and regional initiatives with ASEAN priorities and broader EU frameworks, particularly in key sectors such as sustainable agriculture, circular economy, climate resilience, and digital innovation. The analysis highlights flagship initiatives supported by AICS, the Directorate General for Globalisation and Global Issues (DGMO), and Cassa Depositi e Prestiti (CDP), including contributions to the Just Energy Transition Partnership (JETP). The chapter also critically assesses key challenges—such as limited financial resources, bureaucratic delays, and coordination gaps with EU programming—and offers targeted recommendations to overcome them, emphasizing the importance of a stable and predictable national funding framework. It concludes that Italy’s approach, combining technical assistance, blended finance, and institutional dialogue, can offer a flexible and context-sensitive model for advancing the 2030 Agenda across Southeast Asia.

 

Introduction

This section of the report examines the evolving partnership between Italy and the Association of Southeast Asian Nations (ASEAN) through the lens of development cooperation, with a specific focus on the role of the Italian Agency for Development Cooperation (AICS). As the primary implementing body of Italy’s official development assistance, AICS plays a central role in advancing a strategic, inclusive, and results-oriented engagement with ASEAN. Its interventions are embedded within the broader framework of the ASEAN–Italy Development Partnership, which is supported by funding from the Directorate General for Globalisation and Global Issues (DGMO) of the Italian Ministry of Foreign Affairs and International Cooperation (MAECI), funding from AICS, and leveraged by the financial instruments of Cassa Depositi e Prestiti (CDP) and relevant resources allocated to the Just Energy Transition Partnership (JETP).

Rooted in shared values and a common commitment to multilateralism, the Italy–ASEAN partnership seeks to address pressing global challenges such as climate change, digital transformation, and social inequality, while supporting ASEAN’s regional integration goals. AICS has contributed to this agenda by designing and implementing tailored, context-sensitive initiatives across a range of strategic sectors, including sustainable agriculture, environmental protection, circular economy, energy transition, and digital innovation. Italy’s participation in the JETP in Vietnam and Indonesia, as well as capacity-building programs in areas like statistics, fisheries, and rural development, illustrate this multidimensional approach.

Crucially, AICS integrates bilateral flexibility with regional coherence, aligning its programming with ASEAN’s evolving priorities while working in synergy with European Union efforts. Through public–private partnerships, academic cooperation, and innovative financing tools, Italy also promotes long-term sustainability, institutional strengthening, and the mobilization of private capital.

At the same time, this chapter critically reflects on the key operational and strategic challenges Italy faces in the region. These include limited financial resources, the diversity of ASEAN member states, bureaucratic delays, and the need for alignment with broader EU frameworks. It explores how Italy, and AICS in particular, have responded through adaptive mechanisms, including differentiated national approaches, blended finance, and enhanced coordination with ASEAN institutions.

Ultimately, the chapter highlights how the Italy–ASEAN partnership represents a strategic model for sustainable development cooperation — one that balances diplomatic engagement, technical expertise, and financial innovation. By promoting a shared vision of resilience, equity, and sustainability, Italy contributes to bridging regional development gaps and advancing the 2030 Agenda across Southeast Asia.

 

Italy and ASEAN: A Partnership Rooted in Shared Goals

The relationship between Italy and ASEAN is built on a foundation of shared values, and a joint commitment to addressing global challenges through cooperative action. ASEAN’s position as a dynamic economic and cultural hub — home to over 680 million people and a combined GDP surpassing $3 trillion — highlights its strategic importance to Italy.^[1] Recognizing this significance, Italy has established a partnership that prioritizes sustainability, inclusivity, and innovation.

The institutional engagement between Italy and the Association of Southeast Asian Nations (ASEAN) commenced in a structured form with Italy’s designation as a Development Partner during the 53rd ASEAN Foreign Ministers’ Meeting, held on 9 September 2020.^[2] This designation represented a pivotal step in consolidating bilateral relations and provided the basis for a formalized framework of cooperation. The establishment of the ASEAN–Italy Development Partnership Committee (AI-DPC) institutionalized the dialogue mechanism, ensuring strategic alignment between ASEAN’s priorities and Italy’s development cooperation objectives.^[3]

The inaugural meeting of the AI-DPC took place on 19 April 2021, followed by the second session on 10 June 2022, during which the two parties jointly adopted the Practical Cooperation Areas (2022–2026). This document delineates the thematic scope of the partnership, encompassing sectors such as sustainable trade, environmental governance, food and agriculture, energy transition, digital integration, and cultural exchange.^[4] The third meeting, convened on 18 April 2023, reaffirmed the mutual commitment to advancing joint initiatives and enhancing implementation mechanisms. The fourth meeting, held on 28 November 2024, further reinforced the strategic nature of the partnership and underscored Italy’s role in supporting ASEAN integration and regional resilience.^[5]

These high-level dialogues are complemented by sectoral platforms — including the ASEAN–Italy High-Level Dialogue on Economic Relations, intergovernmental technical exchanges, and youth engagement initiatives — which collectively contribute to deepening mutual understanding, fostering policy coherence, and promoting sustainable development across the ASEAN region.^[6]

Since Italy was recognized as a Development Partner, cooperation has advanced across all three ASEAN Community pillars, encompassing political-security, economic, socio-cultural, and development dimensions. Italy has supported capacity-building initiatives in peacekeeping, maritime security, and mine action, and has engaged with ASEAN on key priorities such as disaster risk reduction, transnational crime, and human rights.^[7] On the economic front, despite a slight contraction in trade flows and negative FDI in 2022, Italy has continued to promote economic relations through the Italy–ASEAN Association and annual High-Level Dialogues on economic cooperation. In the socio-cultural and development domains, Italy has supported education, scientific exchange, and cultural heritage, with initiatives such as the Virtual Learning Center on Cultural Heritage and two ASEAN–Italy Youth Conferences.^[8]

Since 2021, a total of 14 project proposals have been submitted under the ASEAN–Italy Development Partnership. Of these, 4 have already been completed, 8 have been approved and are currently in the start-up or implementation phase, while 2 remain under discussion. The combined value of these projects amounts to €6,785,000 funded by DGMO. When including initiatives funded under AICS’s 2024 programming, as well as the approved Italy’s €2.5 million contribution to the ASEAN COVID-19 Response Fund, the total financial commitment already allocated by Italy to the Partnership reaches more than €15,000,000.^[9]

By April 2025, more than 50% of the Practical Cooperation Areas (PCA) have been covered by project activities — a significant achievement considering that the framework comprises 61 distinct areas of intervention. It is also worth noting that 2024 has seen a marked acceleration in project approvals, with 7 initiatives endorsed in the course of the year alone — accounting for half of all approved projects to date.

In parallel with AICS and DGMO contributions, Cassa Depositi e Prestiti (CDP) — Italy’s national development finance institution — has emerged as a key actor in the ASEAN–Italy partnership. CDP supports economic cooperation through blended finance instruments that combine public resources, climate finance, and private capital mobilization. A significant step was taken in October 2023 with the signing of a collaboration agreement between CDP and the ASEAN Secretariat, aimed at enhancing business connectivity. Through its Business Matching platform, CDP has hosted nine digital events in sectors like clean technologies and agri-food, involving nearly 900 companies and facilitating over 100 B2B meetings.^[10]

CDP also plays a strategic role in the Just Energy Transition Partnerships (JETPs) in Vietnam^[11] and Indonesia^[12], where it has committed €750 million to support equitable decarbonization in coordination with G7 partners and regional development banks.^[13] Moreover, CDP has pledged up to €155 million in loans and grants to the ASEAN Catalytic Green Finance Facility (ACGF). As the operational manager of the €4.2 billion Italian Climate Fund, CDP significantly expands Italy’s development finance toolbox, offering concessional loans, equity investments, and guarantees that complement AICS’s grant-based programming. Through this multifaceted engagement, CDP enhances Italy’s ability to support green and inclusive growth across Southeast Asia.

Beyond institutional actors, Italian firms are increasingly contributing to sustainable development in the region — particularly through initiatives aligned with circular economy principles, such as waste-to-energy systems in Indonesia under the National Strategic Projects framework.^[14] Italy’s private sector has also engaged in industrial innovation and infrastructure development, demonstrating a growing convergence between public cooperation and private investment.

Italy’s ability to align its initiatives with ASEAN’s regional objectives underscores its role as an influential medium power capable of driving transformative change. This partnership not only reflects Italy’s strategic interests but also underscores its commitment to contributing to ASEAN’s resilience and prosperity. The emphasis on shared goals has also fostered a sense of mutual accountability, with both parties committing to measurable outcomes and long-term sustainability. By embracing ASEAN’s regional diversity and Italy’s sector-specific expertise, the partnership has demonstrated the value of tailored approaches that align with local priorities.

 

Strategic Priorities and Current Initiatives of Italian Development Cooperation in ASEAN

The AICS Hanoi Office is responsible for overseeing part of the Italian Official Development Assistance (ODA) in a broad geographical area that includes ASEAN countries, Bangladesh, and the Small Island Developing States (SIDS) of the Pacific. As of April 2025, it manages an active portfolio of projects amounting to €101.8 million, comprising technical cooperation, development finance, and humanitarian assistance. All interventions are aligned with national development priorities and are intended to contribute to the achievement of the 2030 Agenda for Sustainable Development. Within the region, Vietnam stands as the principal beneficiary of Italian ODA.^[15]

Since 2020, the Hanoi Office has progressively regionalized its operational focus, increasingly favoring initiatives that promote ASEAN integration. As mentioned above, this strategic reorientation reflects Italy’s formal recognition as a Development Partner of ASEAN in September 2020 and responds to the evolving cooperation framework between Italy and the Association.^[16] It also marks a shift from country-specific programming toward regional solutions, fostering convergence between national needs and ASEAN-wide priorities.

AICS Hanoi’s operations are guided by a strategic vision that aims to deliver coherent and context-sensitive results across a diverse set of political and socio-economic environments. Its distinctiveness in East and Southeast Asia lies in its focus on integrated, inclusive, and sustainable development, adapted to the environmental and demographic vulnerabilities of the region. Programming choices are inspired by the 2030 Agenda and the “5Ps” framework (People, Planet, Prosperity, Peace, Partnership), and are built on three strategic axes: climate resilience, sustainable natural resource management, and the promotion of circular economy models.^[17] The unifying thread across its portfolio is the strengthening of local capacities, the valorization of Italian expertise, and the promotion of scalable, country-owned solutions that are consistent with both national priorities and the objectives of the ASEAN–Italy Development Partnership.

In middle-income countries such as Vietnam, emphasis is placed on environmental sustainability and knowledge transfer, while in fragile contexts like Myanmar, the focus shifts toward humanitarian needs. This flexibility is enabled by the use of a wide range of instruments — from technical cooperation to concessional sovereign lending, debt swap funds, and emergency response — ensuring both strategic consistency and country-level adaptability.

As of April 2025, AICS Hanoi coordinates several cooperation initiatives at a different level of their appraisal and life cycle with ASEAN institutions and Member States, reflecting Italy’s strategic commitment to sustainability, equity, and regional integration. These initiatives are embedded in ASEAN’s sectoral priorities and contribute to the implementation of the ASEAN Community Vision 2025 and the Sustainable Development Goals.

The current portfolio includes three approved initiatives designed in close coordination with ASEAN institutions. The first is the “Scientific and Technical Support for Sustainable Agriculture in ASEAN Countries (3S)”, led by the University of Milan, which introduces sustainable mechanization and climate-resilient practices into maize, cassava, and sugarcane production. This initiative supports SDG 2 and SDG 13 by contributing to food security and promoting adaptation to climate variability.^[18]

The second initiative, “Cooperation Mechanism for the Competitive Development of Aquaculture and Small-Scale Fisheries (COOPMEC)”, is implemented by CIHEAM Bari in collaboration with the ASEAN Fisheries Working Group. It supports ASEAN Member States in improving aquaculture governance and promoting sustainable small-scale fisheries management. The project addresses technical, policy, and social dimensions, including the development of ASEAN Good Aquaculture Practices (GAqP), training and exchange activities, and the adaptation of international frameworks such as the FAO’s SSF Guidelines and strategies for mitigating the impacts of abandoned and lost fishing gear (ALDFG).^[19]

Third, Italy has allocated €2.5 million to the COVID-19 ASEAN Response Fund,^[20] established in 2020 as a multi-donor instrument to provide immediate and long-term pandemic response. However, its implementation has faced political and operational delays, especially concerning the exclusion of Myanmar’s de facto authorities.

In parallel, AICS Hanoi has spearheaded the design of four additional initiatives, all of which have received positive technical feedback from ASEAN but remain under appraisal waiting for fund confirmation. Among these is the “Geo-Lab” project, proposed by a consortium including the University of Naples Parthenope, the National Research Council (CNR), and the Italian Geologists’ Union (UGI). The project focuses on low- and medium-enthalpy geothermal energy as part of ASEAN’s energy diversification strategy. A complementary proposal — developed with IUCN and Italian CSOs — focuses on forest management and climate resilience through nature-based solutions and community-based ecotourism.

Two additional concept notes were submitted to the ASEAN IAI Division: one on improving water resource use in agriculture in the Lower Mekong region (Cambodia, Laos, and Vietnam), and the other promoting circular economy principles and market access in agricultural value chains, such as coffee and natural rubber, in selected countries. While all four initiatives are well aligned with regional development priorities and reflect Italy’s comparative strengths, their approval remains subject to final confirmation by the Italian side.

Beyond project design and management, AICS Hanoi has worked to strengthen methodological coherence by introducing Results-Based Management (RBM) and Theory of Change frameworks in regional programming.^[21] These tools, not utilized enough in ASEAN project appraisal systems, have improved the analytical rigor, transparency, and accountability of joint initiatives.

In addition to the initiatives identified with ASEAN, AICS is also promoting other programs with a regional focus. For example, a trilateral regional project on environmental statistics, implemented by ISTAT in collaboration with the national statistics offices of Vietnam, Cambodia, and Laos, is enhancing regional data systems and improving the measurement of environmental indicators critical to climate action.

Innovation and digital transformation have become emerging priorities across Southeast Asia, particularly in the context of sustainable and climate-resilient development.^[22] Within the Italy–ASEAN partnership, all key actors — including AICS, CDP, and Italian research institutions — have initiated policy dialogues and pilot initiatives to introduce agri-tech solutions tailored to ASEAN’s needs. These include precision agriculture technologies, data-driven analytics, and digital platforms for improving market access and value chain integration. Although still at an early stage, such initiatives reflect a growing convergence between Italian expertise and ASEAN’s regional strategies for agricultural modernization. Importantly, they aim to enhance resilience to climate variability and market volatility, contributing to a more adaptive and digitally enabled agri-food system in the region.

Finally, human capital development remains a foundational element of Italy’s cooperation strategy. DGMO and AICS support capacity-building through scholarships, technical training programs, and regional workshops focused on agriculture, environment, and energy. These investments foster long-term institutional partnerships and support ASEAN’s goal of narrowing development gaps through skills development and knowledge sharing.

In sum, Italian development cooperation in ASEAN is guided by a strategic vision that integrates thematic depth, methodological rigor, and regional relevance. Its alignment with ASEAN priorities and its flexible use of instruments — ranging from technical assistance to development finance —underscore Italy’s commitment to inclusive and sustainable development in Southeast Asia. However, to sustain and expand this impact, a predictable and adequate national funding framework remains essential.

Table 1: Status of AICS-ASEAN initiatives as of April 2025^[23]

Initiative/Title	Budget EUR	Executing Agency	Status
Cooperation Mechanism for the Competitive Development of Aquaculture and Small-Scale Fishery in ASEAN.	2,999,745	CIHEAM Bari-Mediterranean Agronomic Institute of Bari.	ASEC/CPR approval on 17.07.2024 and Italy’s Joint Committee approval on 30.09.2024. Inception phase.
Scientific and Technical Support to ASEAN Countries’ Sustainable Agriculture.	2,829,198	Consortium led by University of Milan, Dipartimento di Scienze Agrarie e Ambientali, Produzione, Territorio, Agroenergia (DISAA); Scuola Superiore Sant’Anna di Pisa (SSSA Pisa); The Alliance Biodiversity International and CIAT (ABC).	ASEC/CPR approval on 06.09.2024 and Italy’s Joint Committee approval on 06.11.2024. Inception phase.
Italian contribution to the ASEAN COVID-19 Response Fund.	2,500,000	COVID-19 ASEAN Response Fund, administered by the ASEAN Secretariat.	Approved by Italy’s Joint Committee on 30.03.2023. Agreement finalization pending.
GeoLab ASEAN.	5,000,000	Consortium led by University of Naples Parthenope; members: CNR, Unione Geotermica Italiana (UGI).	Included in AICS planning exercise 2024. Project appraisal on hold.
Enhancing resilience to climate change through ecotourism and nature-based solutions in forests, protected and conserved areas in ASEAN Countries.	4,500,000	International Union for the Conservation of Nature (IUCN). Italian CSOs will be involved in the implementation.	Included in AICS planning exercise 2024. Project appraisal on hold.
Support to Small-Scale Producers in the ASEAN Region through the Promotion of Circular Agroforestry Models.	5,000,000	Consortium led by Politecnico di Torino with Center for Circular Economy of Coffee.	Ongoing discussions and preliminary concept under preparation.
Sustainable Water Resource Management and Agricultural Resilience in the IAI Countries of the Lower Mekong.	6,000,000	CIMA Fundation.	Ongoing discussions and preliminary concept under preparation.

Challenges and Adaptive Approaches

Despite its promising early results, the Italy–ASEAN partnership continues to face a range of challenges that require adaptive and context-sensitive strategies. One of the foremost challenges is the heterogeneity among ASEAN member states, which differ significantly in terms of economic development, governance capacity, and sectoral priorities. For instance, while Singapore and Malaysia have advanced digital infrastructures, countries like Cambodia and Lao PDR prioritize basic service delivery and rural development. AICS has responded by designing country-specific development initiatives within a unified regional framework — for example, supporting circular economy approaches in Viet Nam’s agri-food sector, promoting reforestation and indigenous livelihoods in the Philippines through a Debt-for-Development Swap Program, and advancing sustainable aquaculture governance through the project “Cooperation Mechanism for the Competitive Development of Aquaculture and SmallScale Fisheries” in Cambodia and other ASEAN Member States.^[24] A further illustration of this approach is a trilateral initiative to support environmental statistics systems in Vietnam, Cambodia, and Lao PDR. While the regional objective is to improve the monitoring and management of water resources and climate-induced extreme events in the Mekong subregion, the project is carefully tailored to address the varying levels of institutional development and statistical capacity in the three countries — providing differentiated technical assistance to their respective national statistical offices. These examples demonstrate Italy’s commitment to ensuring that its development cooperation is both context-sensitive and strategically aligned with ASEAN’s broader integration and sustainability goals.^[25]

A second critical challenge lies in resource constraints, as Italy, a medium-sized donor, operates with relatively limited financial allocations for development cooperation. As a medium-sized donor, Italy must deploy its funding strategically to maximize impact. To this end, it has concentrated its efforts on high-impact thematic areas such as sustainable agriculture, renewable energy, digital innovation, and the circular economy. Under the ASEAN–Italy Practical Cooperation Areas (2022–2026), initiatives have included the development of innovation hubs for clean energy start-ups and pilot projects for digital traceability in agricultural value chains.^[26] Italy has also increasingly relied on public–private partnerships (PPPs) and collaborations with academic institutions, enabling co-financing arrangements that scale impact and promote the long-term sustainability of interventions. Furthermore, AICS aims to capitalize on economies of scale resulting from a streamlined project portfolio, characterized by fewer but larger initiatives.

To address structural funding limitations and enable more scalable solutions, AICS is seeking to mobilize private capital through blended finance mechanisms and risk-sharing instruments. In this context, Cassa Depositi e Prestiti (CDP) plays a pivotal role. As a financial intermediary, CDP can structure both concessional and non-concessional financing, including sovereign and sub-sovereign lending, as well as credit lines targeting the private sector. Moreover, CDP is positioned to issue guarantees and invest in regional platforms that catalyze private sector participation in climate-smart, inclusive, and sustainable development initiatives. A notable example is CDP’s $35 million loan to Vietnam Prosperity Joint Stock Commercial Bank (VPBank) to support SMEs, particularly women-led enterprises, as part of a broader $300 million climate-focused investment package led by the International Finance Corporation (IFC), alongside other European development finance institutions.^[27] This financing promotes green investments in areas such as renewable energy and energy efficiency, and reflects CDP’s capacity to act as a catalyst for private sector engagement, particularly where market risks deter conventional investors.

Beyond individual transactions, strengthened coordination among CDP, AICS, and ASEAN-based financial institutions could enhance synergies in project design, due diligence, and impact assessment — contributing to a more vibrant and resilient sustainable finance ecosystem in Southeast Asia.

Italy’s capacity to amplify its presence in the region is further reinforced by the Fondo Italiano per il Clima (Italian Climate Fund), launched by the Ministry of the Environment and Energy Security (MASE) and managed operationally by CDP. The Fund aims to mobilize €4.2 billion between 2022 and 2026 to support climate mitigation and adaptation projects in developing countries.^[28] It expands the range of financial tools available to Italian cooperation by offering blended finance instruments, such as concessional loans, equity participation, and guarantees. These mechanisms complement AICS’s grant-based programming, enabling a dual-track approach that combines strategic infrastructure finance with targeted technical assistance and local capacity-building.

This complementary approach is exemplified by Italy’s commitment to the JETP. Italy has pledged €500 million to support Vietnam’s energy transition, equally divided between resources from the Italian Climate Fund and CDP’s own capital.^[29] This contribution supports flagship initiatives such as the Bac Ai pumped storage hydropower plant, which aims to stabilize Vietnam’s power grid and facilitate greater integration of renewable energy. In Indonesia, Italy has similarly pledged €250 million to the JETP, reinforcing its commitment to regional decarbonization and energy resilience.^[30]

The strategic alignment of AICS grant operations with CDP-managed financial instruments, including those of the Climate Fund, constitutes a coherent and flexible architecture for Italian development cooperation. This model allows Italy to address both structural infrastructure needs and institutional and community-level challenges. Ensuring effective coordination among AICS, CDP, MASE, and partner institutions will be essential for maximizing impact and reinforcing Italy’s contribution to sustainable and inclusive development across ASEAN.

Cumbersome bureaucratic processes, both in ASEAN and in Italy, have also posed persistent obstacles. These delays are especially evident in the project formulation and approval phases. Italy has sought to address this by fostering ongoing institutional dialogue and streamlining coordination mechanisms. For example, informal consultations between AICS and ASEAN Secretariat technical units have helped clarify expectations and reduce misunderstandings in project design.

A more structural issue arises from the dual approval process required for AICS initiatives, which must be endorsed both by ASEAN and the relevant Italian authorities. As of 2025, the standard sequence mandates the formal approval of the project document by ASEAN before submission to Italian decision-making bodies. Given that ASEAN’s internal evaluation process typically spans a minimum of three months, this sequencing often results in a delay of at least 12 months from programming approval to project start-up. To address this, discussions are underway — as of April 2025 — to allow parallel approvals by ASEAN and Italy, thereby aligning the initiative’s timing with Italy’s annual programming cycle and enhancing overall responsiveness.

The broader geopolitical complexity of the Indo-Pacific region also influences the partnership. Heightened tensions between major powers, trade restrictions, and supply chain disruptions can have ripple effects on regional cooperation initiatives. Italy’s non-aligned stance and focus on inclusive dialogue have provided a measure of diplomatic stability, allowing it to maintain constructive engagement with ASEAN even amid shifting strategic environments. For example, Italy’s emphasis on “open regionalism”— a cooperative approach that promotes economic integration and multilateral engagement without requiring political alignment or exclusive memberships — aligns well with ASEAN’s own principle of centrality, which asserts ASEAN’s leading role in shaping the regional architecture through consensus, neutrality, and inclusive diplomacy.^[31] This convergence reinforces mutual trust, as both parties favor a rules-based order that respects national sovereignty while promoting collective action, especially in areas like sustainable development, connectivity, and regional resilience.^[32]

 Another operational challenge lies in implementing activities in countries where Italy does not maintain a direct cooperation presence, such as Cambodia, Lao PDR, and Thailand. In these contexts, Italy has relied on ASEAN institutions to help identify appropriate national partners. While this approach promotes legitimacy and alignment with regional priorities, it also introduces an additional layer of mediation that can, at times, slow down implementation. Similarly, the involvement of Italian implementing institutions, including civil society organizations (CSOs), without a permanent presence in the region creates further operational constraints. In some cases, this has been mitigated through the formation of consortia that include at least one partner with an established presence in the region. Nonetheless, the establishment of an AICS office in Jakarta, together with the allocation of a dedicated project space within the ASEC premises, has significantly strengthened operational coordination and helped accelerate approval processes.

Finally, the Italy–ASEAN partnership must continually navigate the challenge of aligning Italy’s bilateral initiatives with broader EU strategic frameworks. Italy operates both as a national actor and as an EU Member State, and while this dual role can create synergies, it also requires careful coordination. For example, many of the sectors Italy prioritizes in ASEAN — such as green transition, digital transformation, and sustainable infrastructure — are also key pillars of the EU Strategy for Cooperation in the Indo-Pacific.^[33] However, Italy’s bilateral initiatives may have specific operational modalities, timelines, or geographic focuses that differ from those of the EU.

A concrete example is the Italian-supported “Scientific and Technical Support for Sustainable Agriculture in ASEAN Countries (3S)” project, which promotes climate-resilient practices in maize, cassava, and sugarcane production. While the initiative is strongly aligned with EU objectives on climate-smart agriculture and food system resilience, it was developed bilaterally with ASEAN and led by an Italian academic institution outside the framework of a formal Team Europe Initiative. This can create a risk of fragmentation if similar EU-funded or Member State-led initiatives are implemented in parallel without coordination — potentially leading to duplication of efforts, inconsistent engagement with ASEAN counterparts, or missed opportunities for joint programming and visibility. Moreover, the 3S project follows a different programming cycle and governance structure, making it harder to integrate with regional EU platforms or contribute to shared monitoring and evaluation frameworks.

Maintaining coherence across these frameworks requires ongoing institutional dialogue between Italian and EU actors, particularly the Delegation of the European Union to ASEAN, AICS, and the Italian Ministry of Foreign Affairs. For instance, when Italy finances a bilateral initiative in sectors such as the circular economy or renewable energy, coordination with EU-funded regional programs helps ensure complementarity rather than duplication.^[34] This is especially important when engaging with ASEAN institutions, which often prefer coordinated approaches that reduce fragmentation and align with the ASEAN Connectivity agenda.^[35]

At the same time, Italy’s status as a medium-sized donor offers it the flexibility to act as an agile partner, able to pilot innovative solutions or respond rapidly to emerging ASEAN needs. In this sense, Italy complements the EU’s broader engagement by adding diplomatic depth — its ability to engage bilaterally, maintain consistent institutional dialogue, and build trust through targeted political and technical cooperation. A clear example is Italy’s early and proactive role in launching the ASEAN–Italy Development Partnership in 2020, which led to the establishment of the ASEAN–Italy Development Partnership Committee (AI-DPC). This positioned Italy among the few EU Member States with a formalized cooperation framework with ASEAN, enabling it to shape a mutually agreed agenda and maintain a direct channel with ASEAN institutions. Italy also brings thematic specialization in areas such as sustainable agriculture, cultural heritage, and circular economy. Nevertheless, to maximize its impact and ensure policy coherence, Italy must continue investing in coordination, joint programming, and information-sharing with EU counterparts — particularly through platforms such as Team Europe Initiatives^[36] and the Global Gateway.^[37]

 

Looking Ahead: Building a Shared Future

As Italy and ASEAN deepen their partnership, several strategic directions emerge to enhance effectiveness and long-term impact. Scaling context-specific initiatives into broader regional platforms will be critical for reinforcing ASEAN integration and ensuring inclusivity across member states with differing capacities. Italy’s flexible, bilateral approach — when embedded within a unified regional framework — can serve as a blueprint for responsive and targeted cooperation.^[38]

To meet the region’s growing development financing needs, mobilizing private capital through blended finance, green bonds, and sustainability-linked instruments will be essential. Italy is well positioned to play a catalytic role through the combined use of AICS grants, CDP-managed financial instruments, and the Italian Climate Fund, particularly when aligned with ASEAN priorities and structured to attract private sector participation. Further leveraging CDP’s role as a development finance institution, alongside continued cooperation with ASEAN-based partners, can also foster a stronger regional ecosystem for sustainable finance.

Stronger alignment with EU frameworks, including through Team Europe Initiatives and Global Gateway, will be vital to avoid fragmentation and reinforce Italy’s dual role as a bilateral actor and EU Member State. Coordinated planning and shared monitoring mechanisms can ensure complementarity between Italy’s efforts and broader EU engagement, particularly in priority sectors such as the green transition, circular economy, and digital innovation. AICS’s status as a pillar-assessed implementing agency offers an opportunity to position Italy as a reliable partner in EU-funded regional initiatives, while also promoting Italian expertise and know-how.

At the operational level, continued efforts to streamline project formulation and approval procedures — including through parallel ASEAN–Italy processes — will enhance responsiveness and reduce delays. Further investments in adaptive programming, local partnerships, and technical capacity-building can help tailor cooperation to specific national contexts, especially in countries where Italy lacks a direct presence.

Finally, the long-term success of the Italy–ASEAN partnership will depend on its ability to remain adaptive, inclusive, and forward-looking. As both regions confront complex and interlinked challenges — from climate shocks and water insecurity to digital disruption and social inequality — Italy and ASEAN can serve as co-creators of solutions rooted in shared prosperity, mutual trust, and sustainable growth. By sustaining institutional dialogue, investing in innovation, and coordinating closely with EU partners, Italy can strengthen its role as a bridge-builder and catalyst for resilient development across Southeast Asia. To sustain and expand this strategic engagement, however, a predictable national funding framework on the Italian side remains essential.

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Cassa Depositi e Prestiti (2023) “CDP’s First Financing in Vietnam: $35 Million for SMEs”, 18 December, available online at: https://www.cdp.it/sitointernet/page/en/cdp_first_financing_in_vietnam_35_million_for_smes?contentId=PRG46435, accessed 11 July 2025.

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^[1] Boario, M., Gabusi, G. (2024) The Economies of ASEAN Countries Between Regional Integration and Global Connections, Geopolitics of East Asia: Security, Economy, Ideology, Rome: Carocci, 185–206.

^[2] Embassy of Italy in Jakarta, “Development Cooperation”, available online.

^[3] ASEAN Secretariat (2021) “ASEAN, Italy Launch Development Partnership”, 19 April, available online.

^[4] ASEAN Secretariat (2022) ASEAN–Italy Development Partnership: Practical Cooperation Areas (2022–2026), available online.

^[5] AICS Hanoi (2024) “Italy–ASEAN Partnership: AICS Delegation Participates in the Fourth Steering Committee”, 28 November, available online.

^[6] For more information on the ASEAN–Italy High-Level Dialogue on Economic Relations, please refer to The European House – Ambrosetti,  “ASEAN–Italy High-Level Dialogue on Economic Relations”, available online.

^[7] ASEAN Secretariat (2025) “Overview of the ASEAN–Italy Development Partnership as of 13 February 2025”, available online.

^[8] Ibidem.

^[9] Ibidem.

^[10] For more information on the CDP Business Matching platform and its initiatives, please refer to the official CDP Business Matching website: https://businessmatching.cdp.it/en/welcome .

^[11] European Commission (2023) JETP Resource Mobilisation Plan – Vietnam, available online.

^[12] OECD Development Assistance Committee (DAC) (2024) “Members’ Participation in Just Energy Transition Partnerships”; see also JETP Indonesia, “JETP Country Platform”, available online.

^[13] For detailed information on CDP’s involvement in the Just Energy Transition Partnerships (JETPs) in Vietnam and Indonesia, please refer to https://businessmatching.cdp.it/it/dashboard/eventi/cdp-le-progettualita-paesi-partner-della-cooperazione-focus-sulle-just-energy-transition-partnerships-vietnam-e-indonesia?id=121&utm_source=chatgpt.com .

^[14] Lin, B.Y. (2023) “Indonesia to Build 30 Waste-to-Energy Plants”, Reccessary News, December, available online.

^[15] For more information on AICS Hanoi, please refer to the official website: https://hanoi.aics.gov.it/?lang=en .

^[16] ASEAN Secretariat (2021) “ASEAN, Italy Launch Development Partnership”, 19 April, available online.

^[17] United Nations System Staff College (2015) The 2030 Agenda for Sustainable Development: A Primer, available online.

^[18] AICS Hanoi (2024) “Sustainable Agriculture: AICS supports ASEAN Countries”, 18 November, available online.

^[19] International Cooperation at CIHEAM Bari (2025) “CIHEAM Bari Portfolio – Progetti cooperazione italiana”, available online.

^[20]  ASEAN Secretariat (2021) “Overview of the COVID-19 ASEAN Response Fund”, Jakarta, available online.

^[21] AICS (2023) Operational Manual for an Approach to Sustainable Development Results, available online.

^[22] ASEAN Secretariat (2022) ASEAN–Italy Development Partnership: Practical Cooperation Areas (2022–2026),  available online.

^[23] AICS (2024) Presentation during the IV Steering Committee Meeting of the Italy–ASEAN Development Partnership, 28 November. Unpublished internal document.

^[24] AICS Hanoi (2023) “Sustainable Agriculture: AICS Supports ASEAN Countries”, 13 November, available online.

^[25] ASEAN Secretariat (2025) “Overview of the ASEAN–Italy Development Partnership as of 13 February 2025”, available online.

^[26] ASEAN Secretariat (2022) ASEAN–Italy Development Partnership: Practical Cooperation Areas (2022–2026), available online.

^[27] Cassa Depositi e Prestiti (2023) “CDP’s First Financing in Vietnam: $35 Million for SMEs,” 18 December, available online.

^[28] Ministry of Environment and Energy Security (2023) “The Italian Climate Fund,” available online.

^[29] ASEAN Centre for Energy (2024) “Is JETP Making Progress in ASEAN Energy Transition?”, 10 July, available online.

^[30] Nguyen, T. (2024) “One Year into the Indonesia and Vietnam’s Just Energy Transition Partnerships”, The Interpreter, 10 December, available online.

^[31] AICS Hanoi (2024) “Italy–ASEAN Partnership: AICS Delegation Participates in the Fourth Steering Committee”, 28 November, available online.

^[32] ASEAN Secretariat (2024) “ASEAN and Italy Reinforce Partnership at the 4th ASEAN–Italy Development Partnership Committee Meeting”, 28 November, available online.

^[33] European Union External Action Service (2021) EU Strategy for Cooperation in the Indo-Pacific, 19 April, available online.

^[34] ASEAN Secretariat (2022) ASEAN–Italy Development Partnership: Practical Cooperation Areas (2022–2026), available online.

^[35] ASEAN Secretariat (2025) “Overview of the ASEAN–Italy Development Partnership as of 13 February 2025”, available online.

^[36] European Commission (2021) “Global Gateway: Up to €300 Billion for the European Union’s Strategy to Boost Sustainable Links Around the World”, 1 December, available online.

^[37] European Commission (2021) “Team Europe Initiatives: Working Better Together”, 1 December, available online.

^[38] AICS Hanoi (2023) “Indo-Pacific outlooks: implications for the EU-ASEAN relationship: the role of Italian Cooperation in regional integration”, available online.

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• Indo-Pacific outlooks: implications for the EU-ASEAN relationship and Italy’s role in Southeast Asia