After winning the confidence of companies, AICEP Portugal Global now wants to win the confidence of foreign consumers. Image: AICEP/ Rodrigo Marques

After winning the confidence of companies, AICEP Portugal Global now wants to win the confidence of foreign consumers. Image: AICEP/ Rodrigo Marques

From 10 to 13 May, a major economic mission is being organised in Lisbon and Porto by Luxembourg’s chamber of commerce, the Portuguese embassy and the ministry of economy. It is a unique opportunity to discover the strengths and economic potential of the country.

Luis Castro Henriques is the current president and CEO of the Portuguese trade and investment agency AICEP,  a partner of the . Nation branding and the creation of a national digital programme are at the heart of AICEP's attractiveness strategy, for which he is responsible.

Aurélie Boob: What is AICEP Global Portugal, and how long has it had economic links with the Benelux?

Luis Castro Henriques: AICEP is the Portuguese agency for investment and foreign trade, a public body responsible for promoting exports, internationalising Portuguese companies and attracting foreign investment. In Portugal, AICEP has several business support services; and abroad the agency ensures a presence in about 55 markets, including the Luxembourg market, in collaboration with the Portuguese diplomatic and consular network. It provides support and advisory services to Portuguese companies on how best to approach foreign markets, identifies international business opportunities and monitors the development of the internationalisation processes of Portuguese companies, especially SMEs.

In the area of export and investment promotion, AICEP plays a liaison and facilitation role in Portugal between different organisations, private sector agents, public entities, and also multilateral and international organisations.

As far as relations between Portugal and Luxembourg are concerned, diplomatic ties have been built up over the last 130 years, and our relationship is now very strong. Both countries share the same values and support each other in the European institutions, the OECD and Nato. As part of this relationship, the existence of a strong Portuguese community in Luxembourg also plays a key role in bringing the two countries together.

Traditional companies reinvent themselves, blending tradition and technology, creating value-added products and services and innovative solutions.
Luis Castro Henriques

Luis Castro Henriquespresident and CEOAICEP Global Portugal

What is the objective of the Portugal-Luxembourg forum taking place in May ?

The Portugal-Luxembourg economic forum, in which we will also participate, will include a very important number of companies and entities from both countries. It will allow us to deepen mutual knowledge between Portuguese and Luxembourg companies and to boost economic and commercial relations, with the opening up and presentation of new potential sectors for commercial and technological cooperation.

What is the interest of Portuguese companies in Luxembourg in terms of ecosystems and sectors?

In the framework of this economic mission, we will discuss in depth areas such as information technology, digital, tourism, space, sustainable construction, fintech, smart cities, among others, but we are also available to explore other sectors of activity that are of interest to both parties.

Is sustainable finance one of the themes in this forum?

An initiative between Portuguese and Luxembourg entities is being evaluated, given Luxembourg’s relevance and global leadership in this area, and the interest it generates among Portuguese companies and entities.

What expertise can Portuguese companies bring to Luxembourg?

In recent years, Portugal has invested a lot in innovative sectors, which value and integrate cutting-edge technologies, such as renewable energies, the sea economy, electric mobility, smart cities, the automotive sector, health and biotechnologies and aeronautics, among others. On the other hand, in more traditional sectors, such as fashion, agri-food, building materials, or cultural and creative industries, companies are reinventing themselves, mixing tradition and technology, creating added value products and services and innovative solutions.

At the same time, Portugal is a stable country, in political and social terms, [it is] open to the world and maintains privileged relations with various countries worldwide, some of which have strong and representative Portuguese communities.

Does Portugal suffer from an image problem?

In recent years, we have seen that Portuguese companies have achieved remarkable results in terms of positioning their international image. Today, when we go to international trade fairs around the world and talk to professional buyers, there is a great deal of unanimity about the Portuguese offer of goods and services: ‘If it’s Portuguese, it’s good, it’s innovative, it’s sustainable, it’s authentic, it’s competitive.’

We have managed to get a very good perception among professional buyers. However, this reputation and good image that we have acquired with the professional public must be better perceived with the final consumer. The number of Portuguese brands with international recognition is still low. This will allow us to move further up the value chain and obtain a higher margin, as it will be the consumers themselves who will seek out and demand Portuguese products and services.

We have developed the ‘Portuguese brand’ strategy, which will be implemented over the next decade and aims to create an image with added value and differentiation factors. At the same time, we are improving our communication in a more assertive way.

Is it fair to say that tourism is still the main sector driving the Portuguese economy?

Tourism is an important sector of the Portuguese economy, accounting for 15.3% of GDP in 2019 and 8% of GDP in 2020--the 2020 figure being strongly conditioned by the covid-19 pandemic. Considering the total Portuguese exports of goods and services in 2021, the main Portuguese exports are related to ‘travel and tourism’ (11.2%), followed by ‘machinery and equipment’ (10.2%) and then ‘vehicles and other transport equipment’ (9.45%). Tourism is a factor of attractiveness and competitiveness of the Portuguese economy, but there are many other sectors of Portuguese industry and even agriculture that are highly competitive and have a very strong presence in international markets.

In terms of innovation, are there any unique hubs or ecosystems in Europe?

Portugal is recognised as one of the most dynamic technology hubs in Europe, capable of attracting talent and investors in various technological fields and supported by a set of world-class research and development institutions, as well as a modern and efficient network of supporting infrastructure.

More and more international companies from various sectors are moving their competence centres to Portugal, many of them specialised in high value-added activities, such as software development, digitalisation, data management, cloud, blockchain, cyber security and artificial intelligence.

A very representative example is the joint venture, created in 2018, between the German giant BMW and the Portuguese-owned Critical Software for the development of an engineering, software and digital services centre for the automotive industry, and which now employs around 1,400 people.

Portugal also has an important ecosystem of technology startups, which are 13% higher per capita than the European average, and account for more than 1% of GDP and 2% of exports. At national level, there are countless grants and incentives for startups, and at regional level, 87% of municipalities support local incubators, and 30% have instruments to support startups. Thanks to all this investment in innovation, there are now seven technology unicorns with Portuguese DNA.

What is the state of digitisation of public services, businesses and finance?

Digital transition is an inevitable process today, and Portugal is committed to following the direction and objectives of the European Commission.

The digital transition programme ‘Portugal Digital’ aims to create convergence with Europe in the digital field, which is a strategic and economic growth vector. The three main pillars of this programme are precisely the digitalisation of the state, the digital transformation of companies, and training and digital inclusion.

After the successes achieved in recent years in the digitalisation of public services (for families and businesses), the Portugal Digital programme will continue to improve the competitiveness of the Portuguese economy.”

This article  in French by Paperjam. It has been translated and edited for Delano.