Vietnam and Belgium have enjoyed a long and increasingly profound development partnership. This article provides an overview of the history, areas of collaboration, and Belgian investment in Vietnam.
Historical Ties Between Vietnam and Belgium
The development partnership between Vietnam and Belgium began in 1977. This collaboration has unfolded through various channels, including the federal government, local communities, and organizations like the Flemish Development Cooperation and Technical Assistance Office (VVOB) and non-governmental organizations (NGOs). This cooperation has significantly contributed to Vietnam’s development over the years.
King and Queen of Belgium to Visit Vietnam
King Philippe and Queen Mathilde have visited Vietnam multiple times, including visits in 1993, 2003, and 2012 when Prince Philippe also visited. These visits are clear demonstrations of Belgium’s interest in Vietnam.
Belgian Development Assistance and Investment in Vietnam
From 1977 to the present, Belgium has provided Vietnam with concessional loans and grants totaling nearly US$300 million. Grants comprised approximately 60% of this total. The disbursed concessional loan amount for 11 projects in Vietnam reached approximately 126 million Euros. These projects focused on vital areas such as water management, institutional strengthening, administrative reform, education, and agriculture. However, Belgium discontinued its grant aid to Vietnam in July 2018.
Furthermore, Belgium continues to foster development cooperation through concessional lending packages offered by the Belgian government (FinExpo) to support exports for small and medium-sized enterprises, and through the support of the Belgian financial investment company for developing countries (BIO).
Trade and Investment Dynamics
Belgium is currently Vietnam’s sixth-largest trading partner within the European Union (EU). 2023 trade volume reached US$3.8 billion, and is projected to reach US$4.45 billion in 2024, primarily focused on pharmaceuticals, chemicals, machinery, equipment, and high-tech products. Vietnam and Belgium signed an Investment Promotion and Protection Agreement on January 24, 1991, establishing a strong foundation for bilateral economic relations.
As of December 2024, Belgium boasts 100 active investment projects in Vietnam, with a total registered capital of US$1.1 billion, ranking 23rd out of 139 countries and territories investing in Vietnam, and 6th among 27 EU member countries. Belgian investments are mainly concentrated in the water supply and waste management sector (37.3% of registered investment) and real estate (33.9%). Belgian investors have projects in 16 of Vietnam’s 63 provinces and cities, with Haiphong City leading with 9 projects and US$420 million in registered capital. However, Vietnamese enterprises have only invested in Belgium with 4 projects, totaling US$12.6 million, mainly in the processing and manufacturing sector.
Conclusion
The Vietnam-Belgium partnership has evolved through various phases, from development aid to trade and investment cooperation. Belgium now stands as a significant partner in Vietnam’s trade and investment relations. The investment and trade figures demonstrate the sustained growth of this relationship. Future collaboration promises to bring substantial development opportunities for both countries.
