According to the article, the main areas that Belgian investors are particularly interested in in Vietnam are industrial zones, food and beverage, processing and manufacturing, pharmaceuticals and renewable energy. With the increasing trade and investment between the two countries, Belgian investors have the opportunity to invest in Vietnamese industries.
Over the past decade, trade and investment relations between Vietnam and Belgium have improved significantly. This is due to the growing Vietnamese economy and the expansion and globalization of a number of Belgian corporations.
Mr. Riccardo Benussi, Director of European Business Development at Dezan Shira & Associates, said that more and more Belgian companies are looking to invest in Vietnam, especially when EVFTA comes into effect and tariff reduction.
As of last March, Belgium had 78 investment projects in Vietnam, with a total registered capital of 1.1 billion USD, ranked 23rd out of 131 countries investing in Vietnam. On the other hand, Vietnam is Belgium’s 14th largest trading partner, with a trade value of about 707.55 million USD by 2020, an increase of 6.7% compared to 2019. In 2019, Vietnam’s exports to Belgium reached 2.9 billion USD, up 8.8% compared to 2018, while Vietnam imported Belgian goods worth 698 million USD, an increase of 6.5% compared to 2018.
In the first 7 months of last year, due to the COVID-19 epidemic, Vietnam recorded an export value of 1.4 billion USD to Belgium, down 17.7% over the same period in 2019. On the other hand, Vietnam Import of goods worth 459 million USD from Belgium, up 11.9% over the same period in 2019.
The article confirms the above figures show that while Vietnam’s exports to Belgium are declining, the value of Vietnamese goods imported from Belgium is still increasing, which is a positive signal for the future of parallel trade. method between the two countries.
In 2019, Belgium is the 7th largest exporter in the EU to Vietnam. By 2020, the top Belgian exports to Vietnam are chemicals (46.2%) and machinery (13.7%). Meanwhile, Vietnam’s top exports to Belgium are textiles, footwear, hats and base metal.
Belgium’s biggest investment in Vietnam is the development and operation of an industrial cluster, known as Deep C Industrial Park (the original name was Dinh Vu Industrial Park – DVIZ). DVIZ was established in 1997 and has played an important role in the development of Hai Phong, northern Vietnam into a dynamic industrial center for the past 23 years.
Sales & Marketing Director Geert Dom of DEEP C Europe and America said that DEEP C has attracted more than 130 projects with foreign investors, including Belgium, Germany, Japan, Korea, the US and Singapore. In the future, DEEP C is still attracting more Belgian and other investors to do business and set up factories and warehouses in this industrial park.
Meanwhile, the senior director of Dezan Shira Office in Hanoi, Filippo Bortoletti, notes that in addition to industrial zones, Belgian investors also play an important role in the food and beverage (F&B) industry. ) of Vietnam. Specifically, Belgian investments focus on the industry’s supply chain, supplying ingredients to restaurants, F&B factories and retail.
In addition, Vietnam’s manufacturing and processing industry has also proven to be a potential investment area for Belgian corporations. Over the past years, most of the Belgian investors’ investments in Vietnam have focused on seaports, infrastructure, real estate, production and power generation.
Not only that, but pharmaceuticals is an important field for attracting foreign investment into Vietnam. Vietnam’s largest pharmaceutical import markets are the EU, India, the US and South Korea, while Vietnam’s export markets are ASEAN, Japan, Cyprus and the US. Most EU investors source raw pharmaceutical raw materials from the EU, transport them to Vietnam, produce and process products in Vietnam before importing them back to the EU.
Thanks to EVFTA, about 71% of import tariffs have been eliminated. In addition, non-tariff barriers also provide opportunities to improve intellectual property rights and to import pharmaceutical products directly. This means Belgian investors can set up an organization to import pharmaceutical products and sell them to local distributors or wholesalers. In addition, Belgian investors are also qualified to build warehouses and carry out clinical research and trials.
Although Vietnam only considered renewable energy in 2017, after only two years, Vietnam has surpassed Malaysia and Thailand to become the country with the largest solar panel installation capacity in Southeast Asia. This proves that foreign technology and investment are being encouraged in Vietnam and that Vietnam has all the advantages for strong and rapid growth in this sector. By 2020, the Government of Vietnam announces its goal of doubling its generating capacity over the next decade.
In addition, Vietnam has also revised its FiT pricing policy (the selling price of electricity generated from renewable energy supplied or sold to the grid) and is expected to increase the share of renewable energy production. in Vietnam by 20% to reduce dependence on coal for electricity generation. Therefore, Vietnam is an attractive investment destination for green energy production projects and it is forecasted that there will be many foreign investors, especially investors from the EU, including Belgium. procedures to establish and expand business activities in this field in Vietnam.
The paper concludes that Vietnam has witnessed exponential economic growth over the past decade, signing a number of free trade agreements to boost trade in the region. The increase in bilateral trade between Belgium and Vietnam, as well as the growing inflow of foreign direct investment (FDI) from Belgium, show bright prospects for the bilateral relationship. The long-term presence and successful investment of Belgian companies in Vietnam is a good signal and a reference for business opportunities in Vietnam.
Source: Vietnam News Agency