The Portugal Trade and Investment agency reported on the outlook of China’s Infrastructure Investment projects that describe the advantages of investing in Portugal. China’s minister of commerce made a statement at an International Infrastructure Investment forum held in Macao on September 28, 2022, about China’s global outlook that underlines that China’s foreign investment will reach Euros 187 billion this year. The China Forum included the participation of 1,300 leaders from over 600 organizations, including government agencies, financial institutions and global companies.
AICEP (Portugal’s Global Trade & Investment Agency) is a government body focused on the development of a competitive business environment that contributes to the globalization of the Portuguese economy. AICEP Portugal took note of the report by China that forms part of the Belt and Road Infrastructure Development Report (BRiDi) 2022.
As a reputable government agency, AICEP Portugal has a global network in over 50 countries. Its mission is to increase Portugal’s competitiveness and reputation by fostering structural investment. AICEP includes the Parks Management entity that advises on the best location for investment projects. The Portugal government agency also supports international investment projects that contribute to the Portuguese economy.
According to the 2022 report released by China, Portugal and other Portuguese-speaking countries are part of the China initiative. Portugal is one of the countries targeted by China for infrastructure investment, as it is the Portuguese-speaking country with the best score in the sub-index linked to the environment. Since Portugal is especially attractive for investment in the field of infrastructure development, China is targeting projects in sectors that are linked to transport and to the environment. According to the report, Portugal signed transport and environment contracts worth over Euros 628 million in 2021.
Portugal ranks high in the report as it is the Portuguese-speaking country that has the best score for the development index which includes, not only the environment, but also political, economic and market factors, as well as the ease of doing business.
The China report about Portugal underlines that its operating costs and GDP are economic conditions that facilitate infrastructure investment projects. It also takes note of the fact that Portugal’s power production facilities are good and that the trend is towards renewable energy during this period of energy transition.
The Belt and Road infrastructure development initiative was launched by Chinese President Xi Jinping. It involves 71 countries in China’s international strategic plan to develop maritime, road and rail links, as well as investment in energy resources. The 2022 Belt and Road Infrastructure Development Index (BRIDI) report includes 8 Portuguese-speaking countries (PSCs), that are chosen for near-term prospects in the infrastructure industry. The report uses the BRIDI index that looks into the environment and costs for infrastructure development in the Belt and Road Infrastructure countries. The higher the BRIDI, the better the prospect of a country’s infrastructure industry. Portugal ranks 27th with a score of 110 in the 2022 Belt and Road Infrastructure Development Index.
While the EU launched in December 2021 the “Global Gateway” that will raise about EUR 300 billion for global infrastructure construction, the Belt and Road Initiative countries have developed their green infrastructure policies and promoted financing for green infrastructure projects. The China study finds that hi-tech green infrastructure projects with low operating costs and environmental impact have become the region’s preferred choice.
Green infrastructure will be the hotspot for investments towards dual carbon goals, prioritizing green infrastructure development. This means sizeable investments in public transportation facilities powered by clean energy, such as electricity, hydrogen, advanced biofuels and natural gas, with a growth of 23% year-on-year. This also includes renewable energy power projects such as wind power and hydropower projects that grew by 36% year-on-year.
Overall Portuguese-speaking countries (PSCs) register a higher score and ranking in this year’s report. This is also due to the environment where Portugal, Cape Verde and Mozambique are the top performers. The real GDP growth rate of Portugal is 4.9%, that is higher than the average of Belt and Road Infrastructure countries. Since Portugal has sound conditions for infrastructure projects, this sounds promising for future Chinese infrastructure projects in Portugal in the short-term.
Source: https://www.portugalbusinessesnews.com/post/china-portugal-investments