Illustrative image (Photo: VNA) According to the article, major sectors that Belgian investors have particularly shown interestin is industrial zones, food and beverage, processing and manufacturing,pharmaceutical, and renewable energy.
It noted that with increasingtrade and investment between Belgium and Vietnam, Belgian investorshave opportunities to invest in Vietnamese industries, favoring the economicand political landscape between the two countries.
Over the past decade,trade and investment relations between Vietnam and Belgium have improved considerably. This has beenattributed to Vietnam’s growing economy and the expansion and globalisation ofsome Belgian corporations.
The article quoted RiccardoBenussi, Head ofEuropean Business Development of Dezan Shira & Associates, saying that moreBelgian companies are looking to invest in Vietnam, especially with theimplementation of the EVFTA and subsequent reduced tariffs.
As of March 2021, Belgium has 78investment projects in Vietnam, with a total registered capital of 1.1 billionUSD, ranking 23rd among 131 countries and territories investing in Vietnam.
On the other hand, Vietnam is Belgium’s 14th largest trade partner,with a trade value reaching approximately 707.55 million USD in 2020, up 6.7percent compared to 2019.
In the first seven monthsof 2020, due to the COVID-19 pandemic, Vietnam’s export value to Belgium totaled 1.4 billion USD, down 17.7 percent year-on-year. On the otherhand, Vietnam imported 459 million USD worth of goods from Belgium, up 11.9 percent year on year.
The article said thesefigures demonstrate that while Vietnamese exports to Belgium experienced a depression, Belgium’s exports to Vietnam still grew, which is apositive signal for the future of bilateral trade between the two countries.
In 2019, within the EU, Belgium was the seventh-largest exporter to Vietnam and thesixth-largest in 2018. Belgium’s top exports to Vietnam in 2020 are chemicals (46.2percent), and machinery and equipment (13.7 percent). Meanwhile, Vietnam’s topexports to Belgium were textiles, footwear and headgear, and base metals.
The most substantial Belgium investment in Vietnam is the development andoperation of an industrial park cluster known as the Deep C Industrial Zone (initially named the Dinh Vu Industrial Zone– DVIZ).
Geert Dom, Head ofMarketing & Sales for DEEP C Europe and the US, said that DEEP C hasattracted over 130 projects with foreign investors of different nationalitiessuch as Belgium, Germany, Japan, the Republic ofKorea, the US, and Singapore. Looking towards the future, DEEP C is stillattracting more Belgian and other investors to do business and establishfactories and warehouses in this industrial zone.
Meanwhile, Filippo Bortoletti, Senior Manager for Dezan Shira’s Hanoi Office,noteed that apart from industrial zones, Belgian investors also play asignificant role in the Vietnamese food and beverage (F&B) industry.
Belgium investments are focused on the supply chain of the industry, catering ingredients torestaurants, F&B factories, and retail, he said.
Vietnam’s manufacturingand processing industry also proves to be a prospective investment sector for Belgium corporations. Over the years, most of theinvestments that Belgian investors have made in Vietnam are in seaports, infrastructure, real estate, manufacturing, and power generation.
Pharmaceuticals is also a significant sector for foreigninvestment in Vietnam. Most EU investors source raw pharmaceutical materialsfrom the EU, ship them to Vietnam, manufacture and process the products inVietnam before they re-import the products back to the EU.
Thanks to the EVFTA, about71 percent of import tariffs have been eliminated. Moreover, non-tariffbarriers also brought opportunities in improving intellectual property rightsand direct pharmaceutical imports. This means that Belgian investors canestablish an entity to import pharmaceutical products and sell to localdistributors or wholesalers. In addition, Belgian investors are also eligibleto build warehouses and perform clinical research and trials, the article said.
The article also noted that Vietnam is anattractive investment destination for green energy production projects, and itis predicted that many foreign investors, especially those from the EU, willcontinue to establish and expand their businesses in this sector in the country.
The increase in bilateraltrade between Belgium and Vietnam, as well as the increasing FDIfrom Belgium, demonstrate bright prospects for the twocountries’ relations, it said, adding that the long-term presence andsuccessful investment of Belgian companies in Vietnam offer a good indicationand reference for business opportunities in the country./.
Belgium investments are focused on the supply chain of the industry, catering ingredients torestaurants, F&B factories, and retail, he said.
Vietnam’s manufacturingand processing industry also proves to be a prospective investment sector for Belgium corporations. Over the years, most of theinvestments that Belgian investors have made in Vietnam are in seaports, infrastructure, real estate, manufacturing, and power generation.
Pharmaceuticals is also a significant sector for foreigninvestment in Vietnam. Most EU investors source raw pharmaceutical materialsfrom the EU, ship them to Vietnam, manufacture and process the products inVietnam before they re-import the products back to the EU.
Thanks to the EVFTA, about71 percent of import tariffs have been eliminated. Moreover, non-tariffbarriers also brought opportunities in improving intellectual property rightsand direct pharmaceutical imports. This means that Belgian investors canestablish an entity to import pharmaceutical products and sell to localdistributors or wholesalers. In addition, Belgian investors are also eligibleto build warehouses and perform clinical research and trials, the article said.
The article also noted that Vietnam is anattractive investment destination for green energy production projects, and itis predicted that many foreign investors, especially those from the EU, willcontinue to establish and expand their businesses in this sector in the country.
The increase in bilateraltrade between Belgium and Vietnam, as well as the increasing FDIfrom Belgium, demonstrate bright prospects for the twocountries’ relations, it said, adding that the long-term presence andsuccessful investment of Belgian companies in Vietnam offer a good indicationand reference for business opportunities in the country./.
VNA
