Brunei Trade

Subchapters:

  • Business Relationships
  • Foreign direct investment
  • FTAs ​​and Treaties
  • Development Cooperation
  • Prospective fields of study (MOP)

Business relations

Trade relations with the EU

(only for non-EU countries) General comment on trading with EU countries, comment on the numbers in the table, reasons for a positive or negative balance.

  • Allcountrylist: Overview of major industries in Brunei, including mining, construction, transportation, tourism, and foreign trade.
2017 2018 2019 2020 2021
Exports from the EU (million EUR) 143 558 331.2 147.3 143.4
Imports into the EU (million EUR) 2.5 3.5 2.8 5.6 2.8
Balance with the EU (million EUR) -140.5 -554.4 -328.4 -141.7 -140.6

Source: European Commission

Engineering products are mainly exported from the EU to the Sultanate of Brunei, and products from other manufacturing industries are mainly exported to the PRC (27.4%), Australia (24.1%), Singapore (21%) and Japan (11.2%). The largest import partners are Australia (17.5%), Japan (15.8%) and Russia (13.4%), while the European partners are Norway (13%).

Trade relations with the Czech Republic

Comment on the numbers in the table, the reasons for the positive or negative balance, comparison with the EU and what causes the differences.

2017 2018 2019 2020 2021
Exports from the Czech Republic (billion CZK) 0 0 0 0 ON
Imports to the Czech Republic (billion CZK) ON ON ON ON ON
Balance with the Czech Republic (billion CZK) 0 0 0 0 ON

Source: CZSO

Last year, the Sultanate of Brunei exported mainly clothes, chemical products and various types of fruit to the Czech Republic. In the opposite direction, Czech exports to the Sultanate of Brunei were mainly defined by “Prepared explosives, non-powder ejectors” and other pyrotechnic products, motor vehicles and tractors (“Vehicles, reciprocating piston engine, 1500-3000 cm³”), electrical devices (“Distributors, etc. for electrical wiring over 1000 V”) and glass. With regard to the growth trend of Czech exports, it is possible to consider opening an Honorary Consulate in the country, or the Ministry of Foreign Affairs may support the activities of the Czech-Singapore Chamber of Commerce, which covers business opportunities in Brunei.

Trade relations with countries outside the EU

Comment on the numbers in the table, the reasons for the positive or negative balance, comparison with the EU and what causes the differences.

2017 2018 2019 2020 2021
Exports from countries outside the EU (million EUR) ON ON ON ON ON
Imports to countries outside the EU (million EUR) ON ON ON ON ON
Balance with non-EU countries (million EUR) ON ON ON ON ON

Source: EIU, Eurostat

Foreign direct investment

The economy of the Sultanate of Brunei is open to foreign direct investment and is slowly starting to diversify after a long dependence on oil and gas exports. Investment opportunities in the country are defined by government development plans as well as consumer demand. FDI is key here in terms of economic, but in this case especially technological development. To support the inflow of foreign investment, Brunei has prepared a number of investment incentives that can be applied for through the Ministry of Energy, the Ministry of Labor and Industry, or the Ministry of Finance, under which the Brunei Economic Development Board / BEDB falls. BEDB was established in 2001 to promote Brunei as an investment destination, helping the country move away from the oil and gas industry, whether through domestic or foreign investment. The agency thus focuses on four areas: attracting investment, strengthening domestic enterprises, improving R&D and innovation, and implementing infrastructure projects. The promising fields for investment were: agriculture, ICT, services, and biological sciences. Especially in the area of ​​digitization, efforts to streamline the telecommunications network and digitize financial services can be observed. Thus, the oil and gas industry, aviation, construction, defense, medical equipment and aids, and franchises focused on gastronomic services remain the traditional investment perspective areas. Within the agricultural sector, the country’s new emphasis is on aquaculture and the processing industry. agriculture, ICT, services, and life sciences. Especially in the area of ​​digitization, efforts to streamline the telecommunications network and digitize financial services can be observed. Thus, the oil and gas industry, aviation, construction, defense, medical equipment and aids, and franchises focused on gastronomic services remain the traditional investment perspective areas. Within the agricultural sector, the country’s new emphasis is on aquaculture and the processing industry. agriculture, ICT, services, and life sciences. Especially in the area of ​​digitization, efforts to streamline the telecommunications network and digitize financial services can be observed. Thus, the oil and gas industry, aviation, construction, defense, medical equipment and aids, and franchises focused on gastronomic services remain the traditional investment perspective areas. Within the agricultural sector, the country’s new emphasis is on aquaculture and the processing industry.

FTAs and treaties

Treaties with the EU

Currently, there is no EU-Brunei bilateral treaty base. At the moment, the Partnership and Cooperation Agreement (PCA) is still under negotiation. The PCA regulates the most-favoured-nation clause for export, import, transit, warehousing, charges for goods and services. Both parties are interested in the full implementation of the principle of free access to the market. The EU wants to temporarily negotiate free trade agreements (FTAs) with individual ASEAN members, after the negotiation of FTAs ​​in the EU-ASEAN format was stopped in 2009. A prerequisite for progress on the FTA issue is the conclusion of a Partnership and Cooperation Agreement (PCA) with the country in question. The launch of PCA negotiations between the EU and Brunei was announced by EU High Representative C. Ashton and Sultan Hassanal Bolkiah on 26 April 2012 at the meeting of EU and ASEAN Ministers in Brunei.

Contracts with the Czech Republic

There is currently no contractual basis.

In addition to the above, Brunei focused mainly on neighboring states. It thus ratified the RCEP just like the other ASEAN members with a few exceptions. Brunei has not yet ratified the CPTPP (Comprehensive and Progressive Agreement on Trans-Pacific Partnership).

Developmental cooperation

The Sultanate of Brunei is not a recipient of development aid.

Prospective fields of study (MOP)

The economic model of the Sultanate of Brunei is heavily dependent on the export of oil and its derivatives, which is why most business opportunities are concentrated in the oil and gas sector. An unbalanced and at the same time unsustainable economic model is now under the Wawasan Brunei 2035 Strategy (strongly linked to the UN Agenda 2030) in addition to general development goals (increasing education, quality of life and strengthening the dynamism and sustainability of the economy) tries to diversify by setting priority investment areas, i.e.: oil and gas industry, ICT, services, gastronomy and tourism industry. A number of projects are still in the preparatory phase, depending on the slowdown in the development of things due to the corona crisis. Being involved in business in the Sultanate of Brunei also involves a number of trips to the region, protracted acquaintance with a business partner, and sometimes non-transparent development of things.

Energy industry

ICT

The Sultanate of Brunei plans to improve telecommunications infrastructure and intermediate financial services in digital form.

Brunei Trade