Vietnam saw a desirable export turnover of US$660 million to the Netherlands in 2005. The Netherlands has invested US$2.029 billion in Vietnam, ranking 8th among countries and territories investing into Vietnam. The Vietnam Business Forum Magazine had an interview with Mr. Antonius L.M. Van Zeeland, Consul General of the Netherlands, in Ho Chi Minh City.
Do you feel the investment environment in Vietnam has improved? Are Dutch investors satisfied with the improvements?
I have stayed in Vietnam for nearly two years and I have witnessed many changes and development of Vietnam as well as many Dutch investors coming to Vietnam. However, in my opinion, the number of investors is not enough because there are more opportunities for Dutch companies. For me, there are two reasons. Dutch companies lack information about Vietnam, they don’t know how Vietnam is growing and how to penetrate and develop in the Vietnamese market. In addition, asynchronous and unclear policies at different government levels discourage investors. I had an exchange talk with a professor at the Hanoi Economic University and this professor recognised that at present not only corruption but also unclear policies are reasons for the small investor inflows. The Vietnamese Government knew this and is seeking all measures to change. I know this needs a certain period of time.
Regarding Dutch investors’ satisfaction, in my point of view, big investors, who want to do long-term business in Vietnam like Dutch Lady and Unilever, are very satisfied as they understand Vietnamese law very well. They have overcome initial difficulties and are now very successful. To make it easier for investors, Vietnam should have concrete instructions to help enterprises know how to go and who to meet. When they face difficulties, competent bodies should be able to resolve their issues and should not delay. Further, the information network in Vietnam has not been updated. The websites of the Government, ministries and branches provide out-dated information.
What should the governments of the WTO countries do to boost trade and encourage Dutch investors into Vietnam? What is your advice for Vietnamese enterprises wanting to do business with the Netherlanders?
Regarding the Netherlands, the Embassy, the Consulate General and the Chamber of Commerce collect all information about the economy as well as renovation to introduce to Dutch companies. We always update Vietnamese economic information to convey to Dutch enterprises. At the same time, we are always willing to receive Vietnamese enterprises and provide essential information about the Dutch economy and Dutch enterprises. In short, the Chamber of Commerce will be the bridge to make companies of the two countries believe in each other further.
As regards Vietnam, I think the Government should speed up the issuance of policies and make implementation measures as clear as possible. I feel that when the central authorities issue a document, central officials know how to implement clearly but when it is sent to local governments, each has its own way, which cause investors feel uneasy. Vietnam should overcome this issue as soon as possible.
As for Vietnamese enterprises wanting to do business with the Dutch, I think you should pay attention to two points. The first and most important one is language, English - the commercial language because all troubles as well as hindrances are resulted from misunderstood communications. The second point is the method of negotiation as the Vietnamese tends to need more time while the Netherlanders need less. Hence, when you arrive in the Netherlands for negotiation, you should prepare well beforehand and be active enough to make the quickest decisions. This is also the prerequisite for success. I also need to tell that when you come to the Netherlands, it is not necessary to behave in Dutch or European routines but you should also know Dutch commercial culture, For example, you should not present gifts to your partners before the negotiation but after it and you should present flowers instead of material things.
How do you assess trading and investment potentialities of the two countries in the next two years?
In the past few years, Vietnam has gained trade surplus. In 2005 alone, Vietnam earned US$660 million from exports to the Netherlands, an increase of US$80 million compared with the year 1995, while spending US$313 million on Dutch commodities. Major exports of Vietnam to the Netherlands are rubber, coffee, cashew nuts, aquatic products, garments, textiles, leather, footwear and handicrafts.
Dutch enterprises can invest in agriculture, machinery, food processing and delivery as they are strong at these. We have techniques and experience to cooperate and help Vietnam. In particular in the banking sector, Vietnam must have a good banking system if they want to develop its economy.
Notably, the development of the Vietnamese infrastructure system has not caught up with the growth pace of the economy and this causes a lot of hindrances for development. Notably, the transport system is becoming worse and the port system is overburdened. The Netherlands is very experienced in this field and I hope Dutch firms will cooperate with Vietnam to improve the infrastructure system.
Vietnamese
