Although Vietnam and the Netherlands formally established diplomatic relations on April 9, 1973, their political and economic ties were only really developed in the 1990s. Historically, the Netherlands used to help Vietnam to boost prosperity. Today, the European nation continues to work closely with Vietnam in economic development efforts. Over the past 40 years, this relationship has changed from aid relations to equal partnership relations for mutual benefit.
In addition to remarkable results in trade exchange and industrial cooperation, energy cooperation is also of mutual concern. Prime Minister Nguyen Tan Dung of Vietnam and Prime Minister Mark Rutte of the Netherlands defined this as one of five priority fields for development on the former’s visit to the Netherlands in September 2011. On this occasion, the Ministry of Industry and Trade of Vietnam and the Ministry of Economic Affairs, Agriculture and Innovation (now the Ministry of Economic Affairs) of the Netherlands signed a memorandum of understanding on energy cooperation. In electricity field alone, the Netherlands has invested in very large projects like the EUR21 million electric telecom cable system infrastructure development project, the US$410 million Phu My 3 Power Plant and the US$2.1 billion Mong Duong Power Plant. In oil and gas industry, some big Dutch firms like Royal Dutch Shell, ABB, Royal Haskoning and Van Oord Dredging are important partners of key projects in Vietnam, including oil exploration and production, petrochemical refining, seaport and seawalls projects (for Dung Quat refinery).
Vietnamese consumers are more familiar to Dutch products, including Dutch Lady milk (FrieslandCampina), Philips kitchenware, Heineken beer, and Unilever cosmetic products.
Vietnam needs Dutch knowledge and expertise in various industries like chemical, energy, agriculture, floriculture, maritime, transport and logistics industries. Besides, the Netherlands can also advise and assist Vietnam in the fight against climate change, water management and coastal technologies. Both countries are major agricultural exporters in the world but they are interchangeable in other fields like horticulture, chemical and energy sectors.
The two nations established the Intergovernmental Committee and signed the Strategic Partnership Agreement on adaptation to climate change and water management at the end of 2010. Under this agreement, the Netherlands will support Vietnam build the Mekong Delta Plan and cooperate with Ho Chi Minh City to prevent flooding. Another common point of the two countries is their maritime agent positions at the sea and in the market area. The Port of Rotterdam Authority is sharing knowledge with Vietnamese ports on expansion and efficiency enhancement.
Particularly, defence ties have been significantly developed after the Dutch Defence Minister visited Vietnam in September 2011. Many important cooperation documents have been signed to pave the way for the two sides to expand cooperation in many fields. According to statistics, military firms of Vietnam and the Netherlands have signed 32 contracts worth more than US$115 million since 2010, focusing on the purchase of equipment, supplies and services for shipbuilding. The two sides have also stepped up cooperation in training, defence equipment and defence industry.
Currently, Vietnam and the EU are negotiating a Free Trade Agreement (FTA), which is expected to be concluded by the end of 2014. Being the gateways to ASEAN and the EU, Vietnam and the Netherlands will be able to bring its economic, trade and investment relations to a new high in the coming years.
Quynh Anh
Vietnamese
