Despite the increasing complexity and uncertainty of the global economic and trade landscape, European businesses, particularly those from Belgium, continued to maintain stable and consistent investment in Vietnam throughout the first half of this year. This resilience reflects not only their confidence in Vietnam’s long-term growth prospects but also the strategic importance they place on the Vietnamese market within the broader Asia-Pacific region.

A key highlight in the opening months of the year was the official visit by King Philippe of Belgium to Vietnam in early April, during which numerous cooperative agreements were signed between the two countries’ ministries, sectors, and local authorities. These agreements spanned a wide range of fields, from culture and trade to meteorology, environmental protection, and investment promotion. This enhancement in economic cooperation has not only boosted the strong bilateral relationship but also laid a solid foundation for Belgian enterprises to deepen their engagement and expand their operations in Vietnam.

New market expansion strategy

In addition to key sectors such as maritime transport, logistics, and renewable energy, many Belgian enterprises are also expanding their footprint in Vietnam by deepening their involvement in the country’s supply chain and green economy. As Vietnam continues to integrate more deeply into the global economy, Belgian companies are seizing the opportunity to enhance their presence while also working to establish a robust bridge connecting Vietnam with supply chains across the Asia-Pacific region and beyond.

According to Mr. Victor Dulait, Executive Director of the Belgian-Luxembourg Chamber of Commerce in Vietnam (BeLuxCham), a growing number of Belgian companies are actively researching and seeking opportunities in sectors where they hold strong advantages, such as electronics, textiles, furniture, and food processing. “With advanced technologies, high quality standards, and global distribution networks, Belgian businesses no longer view Vietnam merely as a production base,” he added. “Rather, they are increasingly focused on building lasting, sustainable partnerships within the country.”

Vietnam also benefits from an extensive network of free trade agreements, most notably the EU-Vietnam Free Trade Agreement (EUVFTA). “These agreements not only make it easier for Belgian companies to access the Vietnamese market but also open the door to wider regional markets within ASEAN,” Mr. Dulait explained.

In the energy sector, Belgian enterprises have recently been actively embracing the global shift towards clean energy and aligning with Vietnam’s strong commitment to sustainable development, particularly in the field of hydrogen.

One notable illustration of Belgian companies’ growing interest in Vietnam’s clean energy sector is the recent move by the John Cockerill Group, a global leader in hydrogen electrolyzer manufacturing. In early April, the Group signed consecutive cooperation agreements with two major Vietnamese partners - the Military Industry and Telecoms Group (Viettel) and The Green Solutions - to jointly develop hydrogen energy projects in Vietnam. These partnerships not only mark a significant step forward in Belgium-Vietnam clean energy collaboration but also reflect the strategic vision of Belgian enterprises in supporting Vietnam’s ambitious sustainability goals.

Though Belgium is not among the top countries investing in Vietnam, its investment footprint in the country has recently left a strong impression. According to figures from the Foreign Investment Agency (FIA) at the Ministry of Finance, Belgium is currently operating 100 investment projects in Vietnam with total registered capital of over $1.08 billion. This places it 24th among all countries and territories investing in Vietnam and eighth among European countries in terms of investment volume. Notably, in the first five months of 2025, Belgian investment into Vietnam stood at $18.07 million, or nearly 16-times higher than during the same period last year.

Beyond direct investment, Belgian capital is also seen as a key driver of both domestic investment and FDI into Vietnam. A prime example is DEEP C Industrial Zones, a cluster of industrial parks and seaports developed and operated by Belgian company Rent-A-Port in northern Hai Phong city and neighboring Quang Ninh province.

DEEP C not only serves as a strategic base for Belgian businesses but also acts as a launch pad that has attracted hundreds of high-quality FDI projects from around the world. Its success not only affirms the long-term strategic vision of Belgian investors but also significantly contributes to Vietnam’s increasingly vibrant FDI landscape, especially in green industries, support industries, and logistics infrastructure.

Long-term prospects remain bright

With the growing activities of Belgian businesses in Vietnam, Mr. Dulait emphasized that the country is becoming an increasingly attractive destination for Belgian investors. This appeal stems not only from Vietnam’s political stability and openness to foreign enterprises, but also from its proactive efforts to improve the legal and regulatory framework, enhance transparency, and strengthen governance.

These positive developments have significantly boosted investor confidence, creating a more predictable and business-friendly environment. As a result, Belgian companies now see Vietnam not only as a promising market for expansion but also as a reliable long-term partner in their broader regional strategies.

Mr. Frank Vossen, Director of the Seditex Co., Ltd., said Vietnam is emerging as a highly-promising investment destination for Belgian firms due to a favorable combination of competitive production costs, a steadily improving business environment, and the Vietnamese Government’s strong commitment to global integration.

Among the key factors making Vietnam highly-attractive to Belgian investors are its competitive labor costs, strong political stability, and a youthful, well-educated population. These elements not only help reduce operational expenses but also ensure a steady supply of skilled human resources; an essential ingredient for sustainable business growth. “These are major advantages that give Belgian companies the confidence to expand their operations here,” he said.

However, alongside the abundant investment opportunities, Belgian businesses also face several practical challenges when operating in Vietnam. One of the biggest obstacles is limited access to transparent, reliable market information. “This makes it difficult for Belgian companies to conduct due diligence, assess opportunities, and make informed investment decisions,” Mr. Vossen noted.

In addition, Vietnam’s capacity for identifying and evaluating local suppliers remains underdeveloped. This is largely due to the fact that much of Vietnam’s industrial sector is either State-managed or primarily operates under outsourcing models for foreign conglomerates. As a result, many Vietnamese partners of Belgian firms have yet to fully optimize their supply processes, leading to higher production costs and lower-than-expected productivity.

Nonetheless, amid Vietnam’s ongoing economic transformation and its ambitious international integration goals, Belgian companies are seeing a strong opportunity to capitalize on the investment wave. “Establishing strategic partnerships and building efficient, high-quality local supply chains not only helps Belgian firms optimize costs and expand their presence in the region, but also lays the foundation for long-term success in a dynamic and high-potential market like Vietnam,” Mr. Vossen affirmed.