Doing business in Belgium Annemie Nolf International Business Consultant ING Belgium
Belgium, an introduction Politiek : * België, koninkrijk en federale staat. * Het land bestaat uit 3 gewesten: het Vlaams Gewest, het Brussels Hoofdstedelijk Gewest en het Waals Gewest * Elio Di Rupo is premier van België Economie : * BBP : 355 miljard euro in 2011 / 89 miljard in Q1 2012 * Inflatie : 3,2 % in 2011, enigszins boven het gem. van de Eurozone m.n. 2,6 % * Werkloosheid 2012 F : 7,4 % * Overheidstekort : 3,6 % van het BNP in 2011 ; doelstelling om te reduceren tot 2,8 % in 2012. * Groei ad 0,3 % BBP in Q1 2012, daar waar meeste Europese landen in recessie zitten. * Handelsbalans is positief. > Nederland is de 3 de handelspartner op vlak van uitvoer (13,5 % van totale uitvoer). > Nederland is de 2 de handelspartner op vlak van invoer * Sinds WO II loopt de welvaart parallel tussen Nederland en Belgie > Rijnlandmodel, parallel aan Nederland * België staat op de 5 de plaats op het gebied van innovatie in Europa (Innovation Union Scoreboard 2011) vs. Nederland op 7 de plaats. October 2011 1
Advantages of Belgium Central geographic location at the economic heart of Europe. Brussels, the heart of EU & NATO is ranked 5th of most interesting European cities for companies to settle. One of the most popular destinations for foreign direct investments ; high presence of HQ s. Highly developed transportation network (ports, canals, railways, and highways to integrate Belgiums industry with that of its neighbours. Idem for its telecommunication infrastructure. Diversified industrial and economic base. Key economic sectors : pharmaceuticals, chemicals, plastics, automobiles, diamonds, electronics, machinery fabrication, food & agri, aircraft, HQ s, environmental, ICT, transports & logistics, etc. Tradition of trade: more than 85% of Belgian GDP exported, so high dependency on world trade. About ¾ of Belgian trade is with EU countries. Access to highly qualified, multilingual and productive labor force Relatively low real estate costs & low cost of living. October 2011 2
Advantages of Belgium Easy to start up a new business, a lot has been invested in simplification of administrative procedures. Public availability of company information (easy access to Belgisch Staatsblad & financial figures). Interesting subvention possibilities for companies who whish to settle in Belgium, esp. Walloon region. Highly Attractive tax regimes : Low effective tax rate and numerous tax exemptions Notional Interest Deduction Widely available tax ruling October 2011 3
Regional differences Productivity in Flanders is roughly 20 % higher than in Wallonia. Brussels GDP per capita is the highest. Flanders : - importance of port of Antwerp, Zeebrugge & Ghent - Importance of diamond sector - A lot of family owned businesses (opportunities for the future) Wallonia : - importance of FN Herstal, aircraft engine & Spacecraft, space technology, biotechnology, production of water & beer, etc. - Importance of port of Liège, important river port & direct connection to Germany October 2011 4
World known Belgian export products Farmaceutische produkten, geassembleerde auto s, kunststoffen, chemische produkten, machines en materiaal vormen de voornaamste Belgische exportprodukten. België is de grootste exporteur ter wereld van diamanten en tapijten. Vele andere Belgische produkten zijn wereldbekend : Belgische chocolade en pralines : Neuhaus, Pierre Marcolini, Guylian, Leonidas, Godiva Vaak gemaakt op basis van de producten van wereldleider Barry Callebaut. Belgische bieren : Stella, Hoegaarden, Leffe, de trappisten Chimay, Rochefort, Westmalle, maar ook water (SPA). Belgisch witloof Belgische mode (Dries Van Noten, Ann De Meulemeester, etc. October 2011 5
World known Belgian export products Belgische blauwsteen (pierre bleue) Koekjes van Jules Destrooper / speculoospasta van Lotus Bakeries Belgische azalea s en begonia s Digitale cinemaprojectoren van Barco (40 % van de digitale cinemazalen eind 2009) Burj Khalifa : in 2010 de hoogste toren ter wereld (828 m) gebouwd door de Belgische groep Besix in Saoedi-Arabië. Een aantal Belgische bedrijven hebben heel wat expertise opgebouwd in de ruimtevaart (Proba-2, tweede ESA-satelliet). October 2011 6
How to tackle the Belgian market? * Belgium is a mature market as well as the Netherlands. It is an ideal test market after which further penetration into the rest of EU is possible. * However, be aware of the cultural differences! * Opportunities to buy market share through take over of family businesses. >> 77 % of companies are family owned businesses = 46 % van het BNP >> 33% hiervan wordt binnen de 10 jr. geconfronteerd met de opvolgingsproblematiek. * One of the main future concerns of the government is the retirement and taking care of the elderly people. The caring & housing of elderly people) can become an interesting & growing sector. Succesfull Dutch companies in Belgium? * Hema, C&A, Albert Heijn, Kruidvat * Examples in Food & Agri industry : Plukon (kippenslachterij) : take over of Flandrex (kippenslachterij) and Maïski (afgewerkt kippenvleesprodukt) Sanorice : take over of Herto (rijstwafels) Succesfull Dutchmen in Belgium en vice versa? Mgr. of the year 2012, elected by Trends : CEO Telenet Duco Sickinghe CEO Heineken : Jean-François van Boxmeer October 2011 7
Why should ING be your Preferred Bank in Belgium Domestic bank with full product & geographical coverage 2.700.000 clients 4.500 employees 800 ING branches + 1.400 Self Bank automated branches Strong online offering for both private individuals and commercial banking clients Proximity of your Relationship Manager: 23 Business Locations for Business Banking clients Your Relationship Manager is your single point of contact Straightforward advice for relevant solutions Internationally oriented: connected to more than 40 countries Specific family business approach Sector knowledge Public and non-profit sector approach VIP expat desk: market share of all expats of 55% October 2011 8
ING products & services in Belgium Your needs are at the heart of everything we do. We deliver by combining industry-leading knowledge and expertise with the ability to execute deals flawlessly. How it works: you will be assigned a dedicated Relationship Manager, who will manage your strategic banking services. Payment & Cash Management Electronic banking (Document) Trade & Export Finance Services Financial Markets Forex & interest hedging Parent Relationship Manager Corporate Lending Structured Finance Commercial Finance Supply Chain Finance The Relationship Manager is surrounded by product specialists with deep product and banking expertise. Asset & Liquidity Management Client Lease The Relationship Manager works closely in partnership with you to understand and anticipate your particular banking needs, acting as a trusted business partner. Our client service model visualised as a flower: the client in the heart of the model, the relationship manager close to the client and close to the service team. Corporate Card Solutions Private Banking Local Relationship Manager Corporate Finance Event Finance Equity If you have international operations, we Markets will provide you in each country outside of Belgium with a Local Relationship Manager. Of course, your Belgian Relationship Manager remains your first Point of Contact. Corporate Clients Mid Corporate Clients M & A October 2011 9
Electronic Banking in ING Belgium Home'Bank Plus: especially for professionals Home'Bank allows you to manage your banking wherever and whenever you want. Making transfers, viewing bank statements or even applying for loans: with Home'Bank on your PC, you can do all this quickly, efficiently and most of all... securely! You choose how you use Home'Bank. You don't have to install any software. You identify yourself online with a Digipass and you can immediately do your banking everywhere in a secure environment. You can also install offline services on your computer and connect via a security module. Home'Bank Plus offers you all the advantages of Home'Bank. You manage your bank transactions yourself, when and where it is convenient to you. On top of that, you benefit from the extra services you need as a professional. Higher payment ceilings Payments requiring multiple signatures Secure delegation of powers Domestic and foreign payments Use of CODA and CIRI files What is Telelink@Isabel? A highly secured interactive electronic banking platform for corporate customers, providing access to most transaction and reporting services of ING. Your advantages Multi-bank platform: Telelink@Isabel is a multibank platform that gives you access to ING in over 20 countries and to the major European banks in Belgium. Highly secured: Telelink@Isabel is secured according to the latest standards on the market Access to various payment services: Telelink@Isabel offers a wide range of payment and collection types and formats across Europe. Multi-user and multi-sign: Telelink@Isabel supports complex mandate structures October 2011 10