Although the Vietnam-Belgium relationship is considered an exemplary model in Asia-Europe cooperation, investment from Belgian companies into Vietnam has not come up to expectation. To date, Belgian firms only invested over US$73 million in 25 projects in Vietnam in the fields of heavy industry, food industry, agriculture, forestry, transport, post, service, construction and jewellery.
The bilateral diplomatic relationship, established on March 22, 1973, has been increasingly developed in both dimension and depth. The economic relationship has also brought to a new high. The two sides signed many cooperative agreements such as investment promotion and protection (January 1991), energy research and exploitation, and technician training cooperation (January 1991), airborne transportation (October 1992), and customs culture (double-tax avoidance – February 1996).
In investment, the Belgian and Vietnamese economic structure has many points in common including small and medium-size business model and household economy; thus, this is a strong point for cooperation of the two countries’ companies. At present, Belgium has 25 investment projects in Vietnam with a total capital of US$73,145,211. Notable projects consist of Wharf 76 infrastructure construction project valued at EUR30 million (Vinashin-Interbeton), hospital waste treatment system construction (Quy Nhon-City MÐnart) with an annual processing capacity of 100,000 tonnes, energy projects and diamond processing projects.
Vietnam is calling for further investment from Belgium. The Vietnamese Government pledges to create favourable conditions for Belgian companies to feel secure in investing and expanding business in Vietnam. Meanwhile, Belgian companies have also expressed their wishes to do long-term business in the country through their activities. At the trade and investment promotion seminar recently held in Belgium’s West Flanders Province, many companies of port operation, ocean shipping, refrigerating equipment, garment, textile, woodwork production, steel and gemstone exploitation and processing said they wanted to invest in Vietnam. The chairman of the West Flanders Chamber of Commerce and Industry and many companies loudly applauded the Vietnamese doi moi (renovation) policy and its active international integration and stressed the attractiveness of Vietnam to foreign investors, notably the high economic growth and the activeness of the Vietnamese people.
During the event, the Vietnamese Ambassador to Belgium, Phan Thuy Thanh, also informed Vietnam’s trade and investment promotion and cultural popularisation activities in the framework of the “Vietnam Days in Belgium” to be held in September. The days will create a chance for the Vietnamese side to meet enterprises and royal receptionists in Brussels, take part in the Acenta Trade Fair in Ghent, and participate in Vietnam-Belgium Economic Forum as well as arts and fashion performances.
In particular, Belgian companies expressed their desire to invest in agriculture in Vietnam. Representatives of 30 Belgian companies and three European universities (Ghent, Wageningen and Trondheim) arrived in Vietnam to seek business opportunities from February 20 to 28.
Belgian companies surveyed the agricultural situation of Vietnam and Da Lat City was a place of interest. They believe that Vietnam possesses many secrets in the production of high quality agricultural products. Mr Marc De Duck, First Member of the Steering Division for the East Flanders Council, said the Belgium’s interest in agriculture and aquaculture is partially because this is one of the fields Vietnam needs investment in the near future. This is also recognised as a strong point of Belgian investors.
Mr De Duck said, during the survey in Da Lat City, Denis Plants Co. of East Flanders signed its first cooperation pact with a Lam Dong Province’s Da Lat City-based unit to turn out 1.3 million plants a year. Denis Plants will export one million plants to Belgian in several years to come.
Notably, East Flanders will carry out an agricultural project consisting of a large-scale training sub-project. This project is a result of a long-time cooperation between Ghent University and Can Tho University. The main objective of the project is to transfer international standards and high-quality trademarks to shrimp keepers.
In addition to agriculture, Belgian investors were also keen on Vietnamese transportation and logistics. The Governor of East Flanders, Mr Denys, said Belgian companies wanted to invest in concrete production. Hence, six member companies in the Belgian Concrete Production Association attended the Vietnamese trip, especially Jan De Nul, a world-leading dredging company. “Although this is the first time we have been to Vietnam, we clearly understand the needs for wharf, road and railway infrastructure construction in Vietnam. This is also an opportunity for business cooperation between the two countries,” he said.
The “Vietnam Days” Programme in other countries is a new and effective trade, investment and tourism promotion model. In 2005, the programme was successfully organised in the United States, Germany, South Africa and Singapore. Hopefully, the “Vietnam Days in Belgium” will generate more successes for the two nations’ cooperation. Remarkably, this is a chance for Belgian business to survey potentialities of Vietnam to invest in new projects or increase investment capital in this market.
Vietnamese
