Export of services: the opportunities of a growing sector

Italian export is continuously growing and more and more companies are interested in pursuing internationalization.

The numbers speak for themselves: from the “Export Report 2023 | “The Future is Now, TOGETHER.” by SACE, it emerges that our country's exports will reach +6.8% in 2023, for a turnover of more than 660 billion euros. These are. decidedly interesting values, enshrining a positive development for our export, which is destined to increase over time.

And it is important to remember which When we talk about exports, we do not refer only to the transfer abroad of tangible assets, but also to that Of services.

Export by services, a constantly developing sector

Always According to a recent SACE report, carried out in cooperation with Manageritalia, it is expected that in 2023 the export services for Italy grow by 2.6%.

SYet it was affected by the recent pandemic, the service sector results increasingly important in international trade and, therefore, a possible opportunity for Italian companies that make services the focus of their business.

In fact, it is precisely services that identify themselves as an integral part of today's production processes, particularly those defined as “high-tech,” that is, those related to the areas of research and development, management and professional consulting, engineering and architecture.

Italian services exports reached 26.2 billion euros in 2021, again according to the SACE report, even surpassing tourism, which has always been the flagship of our economy.

But What are the target countries? The 51% is represented by nations in the European Union, outside these borders we find Switzerland, the United States, the United Kingdom and China.

South Korea, a possible new frontier for exports as well by services

According to the World Trade Organization in the report “Services in Trade.” by 2022, the service sector will exponentially increase its weight in international trade. 

This trend is also due to technological innovations, which have made it easier to provide services abroad.

And when we talk about exports, there are countries with emerging economies that are increasingly emerging as possible interlocutors, including for our nation. South Korea is one of them, as well as the Vietnam.

Europe represents the second largest supplier of goods just for South Korea thanks also to the existence of a trade agreement that provides for the abolition of customs duties for most products (98.7%) and also less red tape for exports of pharmaceutical, automotive, electronics and chemical goods (source European Commission).

Those who wish to sell their services in South Korea can also take advantage of certain advantages today: it becomes less complex to establish a connection in the country, not only to offer their services but also to set up an office, branch or subsidiary of their company.

Here are what are the the sectors most involved:

• Telecommunications
• Environmental services
• Transport
• Construction
• Financial
• Postal and express delivery
• Business and professional services such as legal, accounting, engineering, and architectural services

Companies operating in these sectors have, by virtue of the trade agreement entered into, the opportunity to be treated as companies in the country and provide most of their services directly, without the need for subcontracting.

In addition, there are also more opportunities for those who want to bid for contracts in South Korea: in fact, EU companies can now bid for contracts called build-operate-transfer (BOT) (concession services) contracts.

This means that Italian companies can also compete in large infrastructure tenders, such as the construction of transportation networks and/or bid for their management.

CONCLUSIONS

Within the framework of these numerous facilities, which cover not only the export of goods but also the export of services, numerous opportunities arise for companies wishing to enter this market and selling in South Korea.

Octagona is by your side to identify the best strategies to expand your company's business beyond national borders, backed by the skills of its professionals.

In our team you will be able to find the figure of the  Temporary Export Manager, of Digital Expert e more able to come up with the best internationalization strategy that can really grow your business.

Contact us now, we will answer all your questions in detail.