With a total investment capital of US$ 2. 6 billion, the Netherlands remains among the leading European investors in Vietnam. Many ODA projects funded by the Dutch Government have been very successful and more will be financed in the future. Vietnam Business Forum reporter talks with Mr. Jos Schellaars, the Consul General of the Netherlands in HCM City.
What are the main achievements of trade and investment between Vietnam and the Netherlands? How does the global economic crisis affect trade exchange between the two countries?
Vietnam-Netherlands economic, trade and investment ties have developed constantly over the past 36 years.Vietnam has been one of the priority partners of the Netherlands. Most key Vietnamese export products to the Netherlands such as cashew nuts, pepper, plastics, wooden products achieved high growth in 2008.The two-way trade turnover in 2008 reached approximately US$ 2.2 billion, including US$ 1. 6 from Vietnam, up nearly 24% compared to the year 2007.
In terms of investment, the Netherlands ranked 8thth among 82 countries and territories and topped the list of EU nations investing in Vietnam with US$2.6 billion in FDI, including US$ 2 billion disbursement. A delegation of more than 30 Dutch entrepreneurs to Southern Binh Duong Province on April 2008 hunted for business opportunities shows that Vietnam is still an attractive business location for Dutch investors
The current global crisis is affecting Dutch imports and exports in 2009; however, Vietnam is still one of the Netherlands top four priority trading partners in Asia, along with China, India and Japan.
Could you introduce some strategic programs of Dutch’s ODA to Vietnam in 2009 and 2010?
Regarding the ODA budget, the Netherlands committed to finance around Euro 25-27 million/year in the period of 2000-2005 and Euro 36 million/year in 2006-2008 to Vietnam. The financed projects include healthcare services (tuberculosis prevention, nutrition, reproduction health and HIV/AIDS prevention); water resources; forest development and forest biological diversity preservation, etc.
The project of Viet Nam’s Biogas Program for Animal Husbandry Sector, funded by the Dutch Government in the period of 2003 to 2006, the Dutch Government offered non-refundable official development aid worth Euro 1.15 million for building 9,300 biogas tanks in Vietnam in 2006.
According to the MOU signed between the Netherlands Development Organization and the Ministry of Planning and Rural Development in 2006, 180,000 biogas tanks will be built in 58 cities and provinces with a total investment capital of Euro 66 million till 2010, of which Euro 4.8 (ODA) from the Dutch Government, Euro 17.6 million soft loan, Euro 5. 8 million from provinces and Euro 38 million from households.
In addition, during a talk between Vietnamese Minister of Agriculture and Rural Development Cao Duc Phat and the Netherlands’ Minister for Agriculture, Nature and Food Quality, Gerda Verburg, in Hanoi on June 6 2009, the two sides discussed other issues like the development of sustainable trade, especially in agriculture, farm produce and seafood.
Till 2011, we will focus on climate change and involvement in the water management sector. In addition, other activities like growth and distribution, sustainability and energy will be refocused on in the future. At the same time, an aid worth of millions of Euro will be given by the Dutch Government to help improve Vietnam’s education in the coming time.
With the world economy as it is, will Dutch investors still come to Vietnam?
Although Vietnam is partly affected by the economic recession, Vietnam still shows attractive opportunities. Vietnamese economy is still much better than other countries. The people are friendly, confident and optimistic. I think that the difficulties in Vietnam will soon be overcome.
I am sure that Dutch enterprises will continue to come to Vietnam. The most prominent evidence is the visit of 15 Dutch energy enterprises that explored opportunities for investment cooperation in April 2009. These enterprises have worked with important partners involved in methodology, energy technology and petrol services such as Vietsopetro, Petro Vietnam and PTSC.
What do you think of Holland Days in Vietnam?
I appreciate the results and activities of Holland Days in Vietnam in 2008 carried out by my predecessor. The Holland Days in Vietnam will be surely organized again. It is expected to be held in early 2010.
How do you evaluate the Vietnamese economy after 2 years of WTO accession?
Becoming the 150th member of the WTO implies that Vietnam will gradually accept global rules and regulations, which is important for businesses looking for stability and predictability. The business environment has become more transparent and open in order to efficiently mobilize domestic and foreign resources in the last 2 years. Foreign direct investment has also increased in the last two years. Investment from the private sector has increased greatly, contributing to raise investment capital of the country to over 40 %. This has formed the foundation for an economic structural transition, which will create more jobs and ensure growth.
What have been your feelings about Vietnam since being appointed as the Consul General of the Netherlands in HCMC?
My first feeling is that Vietnamese people are very friendly. Vietnam is a very safe country. Till now, everything with me has gone going smoothly. Two bad factors that I have seen in Vietnam are infrastructure and traffic congestion. These must be quickly addressed if Vietnam is to set a goal of stable economic development.
Reported by Ngoc Trang
Vietnamese
