Vietnam – Netherlands Raising Trade and Investment Relations to New Level

With a stable economy, young labour force, and open investment policies, Vietnam is indeed a potential market for Dutch businesses to exploit and invest in. Mr Joop Scheffers, Ambassador of the Netherlands to Vietnam said that 40 years after the establishment of diplomatic relations with Vietnam, cooperative relations between the Netherlands and Vietnam have made significant steps. Along with that, Vietnam's positive growth is a significant advantage for Vietnam to attract and develop trade and investment relations. Currently, the Netherlands is one of the major investors and trade partners of the EU to Vietnam.

 

In the trade sector, the Netherlands is currently the third largest market of Vietnam in the EU, after Germany and the UK. Vietnam mainly exports to the Netherlands computers, electronic products and components, telephones and components, footwear, textiles, cashew nuts, seafood, plastic products, pepper, wood and wood products. From 2002 to now, Vietnam's exports to the Netherlands have increased by an average 15 percent a year. Particularly in 2012, export turnover from Vietnam to the Dutch market reached more than US$2.47 billion, up 15.2 percent compared to 2011. The Netherlands is strongly promoting its role as the "gateway" into Europe for Vietnam, with over 100,000 cargo containers a year going through the Port of Rotterdam to the Netherlands and other EU countries. The Netherlands has strong economy and trade. The Dutch business community in Vietnam is significant and most Dutch companies are successfully operating in Vietnam. Many Vietnamese enterprises are now in good cooperation with Dutch companies and eager to expand cooperation and reach out to the Netherlands and EU markets. The two countries also have good cooperation in the development and signing of economic agreements between Vietnam and the EU such as Partners and Cooperation Agreement (PCA) and Free Trade Area agreement (FTA). The Netherlands is gradually becoming a larger and more important trade partner of Vietnam in the world in general and in the EU in particular.

Particularly in the field of investment, in the past 20 years, the Netherlands has always ranked among the largest investors in the EU in Vietnam with 163 effective projects worth US$6 billion with high disbursement rate. Trade between the two countries has increased from US$1.68 billion in 2009 to US$3.2 billion in 2012. The success of Unilever, Heineken, Dutch Lady, Philips, etc. is evidence for Dutch groups to continue to put confidence in and expand investment and business cooperation in Vietnam in the coming time.

 

Speaking at a ceremony to launch a series of events celebrating 40 years of diplomatic relations between Vietnam and the Netherlands, Mr Huynh Minh Chinh, Vietnamese Ambassador to the Netherlands, said that Vietnam and the Netherlands have established strategy partnership in the field of water and water management, achieved more cooperation agreements in many key sectors of the economy and promoted each other's strengths in overall economic cooperation. The two countries’ governments have identified five priority areas of economic cooperation, achieved greater agreement on cooperation on energy, shipping and ports, and continued to discuss comprehensive cooperation framework on agriculture and logistics service.

Each year, the Netherlands spends approximately Euro 5 million to finance the technical assistance activities in the fields which benefit both countries and possibly expand economic and trade relations. Besides, Dutch businesses have brought modern technologies to Vietnam, particularly in sectors such as agriculture, water and water management, shipping, logistics, shipbuilding, metalworking, utilities and job training, thereby contribute greatly to improving the competitiveness of Vietnam and developing industries and services. They also contribute significantly to the positive change of rural areas of Vietnam. However, he said that not only do Dutch enterprises have the opportunity to invest in Vietnam, Vietnamese enterprises also have opportunities for investment cooperation in the Netherlands, and the EU, for business development, science and technology and management experience to apply at home.

According to Ambassador Joop Scheffers, almost every week the Dutch Embassy in Hanoi or the Consulate General of the Netherlands in Ho Chi Minh City jointly take charge of the work related to economy and support companies looking for business opportunities in Vietnam. Since early this year, many business groups in the oil and gas sector, water management, agriculture and shipping from the Netherlands have enhanced cooperation and sought opportunities for business contracts with Vietnamese partners. The results were very positive, promising potential for future development. Currently, the Netherlands is focusing on supporting Vietnam in the fields of trade and investment by helping to improve the investment environment and expanding business fields for the benefit of both countries. The Dutch government will continue to support and create conditions for Dutch businesses to enhance and expand business and investment in Vietnam. It will also continue to promote cooperation programs and projects in support of development, aimed to improve trade and investment relations between the two countries to a higher level.