Perhaps Scott Beardsley, President, AmCham Belgium, said it best: “Compared to a year ago, it’s nice to have some rather encouraging news.” The encouraging news being that US Direct Investment in Belgium is up – way up.
According to the annual AmCham Belgium US Direct Investment in Belgium (USDI) Report – released November 17 at a breakfast roundtable and press conference hosted at the US Ambassador’s residence – in the first half of 2010, US inflows into Belgium increased by 44% over the total USDI investment made in 2009. Needless to say, this growth is helping recovery in the Belgian economy.
According to Howard Gutman, US Ambassador to Belgium, US Foreign Investment is more important than ever. “In an economic environment rife with questions, a strong US economy and a significant level of US foreign investment are keys to driving global economic recovery,” says the Ambassador. “Regardless of one’s economic opinions, what we’ve learned from this recession is that we all rise and sink together.”
On the Rise
An overall trend visible in this year’s report, a study commissioned to Vlerick Leuven Gent Management School, is a rise in US foreign investment – both around the world and in Belgium. At the breakfast, Leo Sleuwaegen, Professor at Vlerick, noted that as foreign investment returns to a growth cycle, we’re noticing some changes in the type of investment. “We’re seeing other types of investments being made, such as by small companies,” says Sleuwaegen. “Companies are also making investments more quickly and in new, non-traditional regions like China.”
“The US remains the most important source country for direct investment in Belgium,” continues Sleuwaegen. “In fact, Belgium ranks number eight on the list of top destinations for US foreign investment.”
Although investment in the services sector increased this year, surpassing the total amount of investment in manufacturing, Belgium needs to become more competitive here.
“Belgium needs to attract more services investment,” says Marcel Claes, Chief Executive, AmCham Belgium. “To accomplish this, the focus needs to be on skill development, innovation, fostering a more service and customer-minded culture and creating a flexible, open and competitive labor market in Belgium.”
Regardless where the investment is going, the benefits to Belgium are clear. According to Priscilla Boiardi, Research Associate at Vlerick, US investment is responsible for the creation of 129,000 jobs in Belgium, which equates to 3% of the total Belgian employment base. “In Belgium, we’re seeing a trend towards job creation in the manufacturing sector,” says Boiardi. “The rate here is much higher than the rate in the rest of Europe.”
How We Compare
Granted, the USDI picture in Belgium is looking up, but there is still much room for improvement – especially when you compare Belgium to its neighbors. Take the Netherlands, for example, a country that is very similar to Belgium. Whereas the total amount of USDI stock in Belgium in 2009 was nearly $7bn, in the Netherlands that level was a staggering $471bn.
Today, the Netherlands is the most preferred country for US foreign investment – raising the question, ‘Why Holland?’ According to the report, the answer is in the policies. The Netherlands has taken specific steps aimed at opening up its service sector and developing a very competitive economy, which has also attracted significant activity in the holdings and finance sectors.
Similar stories are unfolding in Switzerland. Belgium has lost many companies to Switzerland for the simple fact that taxes are lower there.
The good news is the same can be done here in Belgium. The bad news is that this will require significant changes: in the tax regime, in the regulation of the services sector, in the flexibility of the labor market, in R&D investments – to name only a few. But if concrete steps can be implemented, the result will be an even more rapid growth in US Direct Investment in Belgium – which is good for Belgium, good for the US and, as the Ambassador pointed out, good for the global economy.
Perhaps Scott Beardsley, President, AmCham Belgium, said it best: “Compared to a year ago, it’s nice to have some rather encouraging news.” The encouraging news being that US Direct Investment in Belgium is up – way up.
According to the annual AmCham Belgium US Direct Investment in Belgium (USDI) Report – released November 17 at a breakfast roundtable and press conference hosted at the US Ambassador’s residence – in the first half of 2010, US inflows into Belgium increased by 44% over the total USDI investment made in 2009. Needless to say, this growth is helping recovery in the Belgian economy.
According to Howard Gutman, US Ambassador to Belgium, US Foreign Investment is more important than ever. “In an economic environment rife with questions, a strong US economy and a significant level of US foreign investment are keys to driving global economic recovery,” says the Ambassador. “Regardless of one’s economic opinions, what we’ve learned from this recession is that we all rise and sink together.”
On the Rise
An overall trend visible in this year’s report, a study commissioned to Vlerick Leuven Gent Management School, is a rise in US foreign investment – both around the world and in Belgium. At the breakfast, Leo Sleuwaegen, Professor at Vlerick, noted that as foreign investment returns to a growth cycle, we’re noticing some changes in the type of investment. “We’re seeing other types of investments being made, such as by small companies,” says Sleuwaegen. “Companies are also making investments more quickly and in new, non-traditional regions like China.”
“The US remains the most important source country for direct investment in Belgium,” continues Sleuwaegen. “In fact, Belgium ranks number eight on the list of top destinations for US foreign investment.”
Although investment in the services sector increased this year, surpassing the total amount of investment in manufacturing, Belgium needs to become more competitive here.
“Belgium needs to attract more services investment,” says Marcel Claes, Chief Executive, AmCham Belgium. “To accomplish this, the focus needs to be on skill development, innovation, fostering a more service and customer-minded culture and creating a flexible, open and competitive labor market in Belgium.”
Regardless where the investment is going, the benefits to Belgium are clear. According to Priscilla Boiardi, Research Associate at Vlerick, US investment is responsible for the creation of 129,000 jobs in Belgium, which equates to 3% of the total Belgian employment base. “In Belgium, we’re seeing a trend towards job creation in the manufacturing sector,” says Boiardi. “The rate here is much higher than the rate in the rest of Europe.”
How We Compare
Granted, the USDI picture in Belgium is looking up, but there is still much room for improvement – especially when you compare Belgium to its neighbors. Take the Netherlands, for example, a country that is very similar to Belgium. Whereas the total amount of USDI stock in Belgium in 2009 was nearly $7bn, in the Netherlands that level was a staggering $471bn.
Today, the Netherlands is the most preferred country for US foreign investment – raising the question, ‘Why Holland?’ According to the report, the answer is in the policies. The Netherlands has taken specific steps aimed at opening up its service sector and developing a very competitive economy, which has also attracted significant activity in the holdings and finance sectors.
Similar stories are unfolding in Switzerland. Belgium has lost many companies to Switzerland for the simple fact that taxes are lower there.
The good news is the same can be done here in Belgium. The bad news is that this will require significant changes: in the tax regime, in the regulation of the services sector, in the flexibility of the labor market, in R&D investments – to name only a few. But if concrete steps can be implemented, the result will be an even more rapid growth in US Direct Investment in Belgium – which is good for Belgium, good for the US and, as the Ambassador pointed out, good for the global economy.