Q&A with Eric de Clercq

A slightly edited version of this Q&A appeared in the Budapest Business Journal
Conducted by Jacob Doyle

Eric De Clercq is the economic and commercial counselor of the Wallonia region of Belgium (Wallonia Export and Investment – AWEX), working through the Belgian Embassy to Hungary in Budapest. He recently came to Budapest from the same posting in Warsaw. Establishing and fostering ties between SMEs in Wallonia (Belgium) and Hungary, along with greater utilization of Belgian expats within Hungary’s business community top off his personal goals for his posting here.

Q: How would you describe Belgium’s role in international business?

A: Foreign trade has always been extremely important for Belgium since its very creation in 1830. Nowadays more than 70% of our economy relies on it. With this we are very open to the presence of foreign firms within our borders. Numerous large international companies have been long established in our country. American companies are for example extremely well represented. In fact, we just celebrated the 175th anniversary of Belgo-American relations. The most recent examples have been Google and Microsoft, which just decided to set up a major European hub in Mons, next to the French border. In my own region of Charleroi we have a large Caterpillar plant that assembles earth-moving equipment, providing employment for more than 3000 people. So the American presence in Belgium is substantial. Moreover, the presence of EU and NATO institutions gives the country a strong international aspect, particularly in its image abroad. And there is the fact that we have three official communities speaking three different languages (Dutch, French and German), as well as large numbers of ethnic minorities. Belgium’s cultural diversity is definitely considered as a plus by companies wishing to invest in our country. On the other hand, our national and regional presence abroad is rather far-reaching. Speaking just for Wallonia, we have the support of 105 economic representative offices in some 80 foreign markets, in place to serve the interests of our companies. And it is important to mention that we work closely with our colleagues from the other regions of Belgium and the federal authorities. As far as Hungary is concerned, Belgium is one of the top 10 investors in this country. Our companies have invested over €2 billion here.

Q: You recently came to Hungary from Poland as the Economic and Commercial Counselor representing the Wallonia region of Belgium. What have been your activities thus far and what plans do you have?

A: My main role is to help out companies - mainly SME’s - to develop their exports to the Hungarian market. I also promote foreign investment in my region. I’m new, so my first few months have been devoted to meeting Belgian firms already operating here. There are just a few large Belgian firms left in Hungary. Considering the process of globalization many Belgian investments have been bought over the years by multinationals. There are however many Belgians working in this country for non-Belgian firms. I would like to tap into this group and utilize its human resources. This is the first of two early goals I’ve set for myself, the second being to facilitate the involvement of Walloon SMEs in the Hungarian market.

Q: Could you be more specific about how do you hope to utilize these Belgian expatriates living and working in Hungary?

A: I think that the experience and expertise of all those Belgians working for non Belgian companies could be successfully used to help out our companies. One area where I hope to attract interest is to Pécs 2010, that is when Pécs becomes the European cultural capital. This was the rationale behind the business event my office helped to organize on April 23rd, along with the French-Hungarian Chamber of Commerce. Not only do events such as this build awareness on business opportunities, they also offer the possibility for the management and employees of Belgian and French firms to get acquainted, discuss and analyze opportunities and possible cooperation with the decision makers. With some 50 companies participating, our goal for this event was largely met. I don’t however wish to multiply the number of events on the Hungarian business calendar. There is more than double the number here than in Warsaw, my previous posting.

Q: What ways are you able to help these Walloon firms “get down to business?”

A: My office is able to foster business relations between Belgian and Hungarian businesses by organizing and even host meetings between them. What’s more, we have the capacity to play a limited matchmaking role at the request of a company – typically a Walloon firm interested in doing business here – by assessing their needs and then by researching the local market to help find partners, suppliers or even prospective clients on the companies behalf. We also work with ITD Hungary for FDI projects. I am not really a believer in big trade delegations. Instead I prefer to give as much individual attention to particular firms as possible. Unlike some other countries’ commercial services, we provide this service free of charge.

Q: What leads you to think you could have success in bringing Belgian SMEs to Hungary?

A: In addition to the services provided by this office, one factor attracting foreign companies to Central and Eastern Europe remains lower costs. But there is still sometimes a “mental Berlin wall” in the minds of many companies. Some people still view the region as being distant. Yet since the advent of low-cost air carriers, you can reach a market of 10m consumers and producers such as Hungary for less than the cost of a train ticket to Paris. Wizzair, a partly Hungarian owned airline, is the second largest client of the Brussels South Charleroi Airport. The effect could be similar to what happened in ’97 when Ryanair opened direct flights between Charleroi and Dublin and new markets were in effect created. Return fares of less than €100, coupled with agreements with hotels, enables low-cost visits with personalized meetings with local companies. So when it comes to bringing Belgian SMEs to Hungary, discount travel fills the missing link.

Q: What steps could be taken to secure investment on the part of Belgian SMEs?

A: All the big fish FDI have come already. The future belongs to SMEs. Their success depends a great deal on how they are received, both by local businesses and by local government. This will also help to determine the size and specificity of the SMEs that come. Previously, the lure had been made to big companies. Concerted efforts to attract foreign investors can and does pay off. As an example, the municipal government in Wroclaw, Poland launched just such an initiative and now lures numerous SMEs of foreign origin. Hungary could do the same. Municipalities could offer opportunities to Belgian SMEs. In Pécs we discussed redevelopment of the Zsolnay porcelain works. As you may know, in Belgium we also have a strong tradition of crystal and porcelain. When they described how part of the works would become a museum, I was reminded that this very thing has been done to a crystal works in Belgium, thereby illustrating an opportunity for just such cooperation.