Nguyen Hai Tinh, Vietnamese trade counsellor in the Netherlands, talked about potential for a further development of the Vietnam-Netherlands trade ties with Vietnam Business Forum.
How have the Vietnam-Netherlands trade ties been recently?
The bilateral trade exchange between Vietnam and the Netherlands has witnessed a rapid growth in recent years. Statistics of Vietnam customs agencies show that the two-way trade exchange turnover between the two countries reached US$944.16 million in 2005, up by 24.41 per cent against 2004. Of the figure, Vietnam’s export turnover was put at US$630.85 million. In the first half of 2006, two-way exchange turnover stood at US$551 million with Vietnamese export value reaching around US$400 million, up by 27 per cent. This year’s figure is expected to reach US$1.2 billion, of which US$800 million will come to Vietnam’s export.
Most major Vietnamese exports, in particular seafood, textiles and garments, PCs, electronic accessories, plastic products, cashew nuts, pepper, vegetables and fruit, tea, and rattan and bamboo articles, saw their export value increasing strongly. Seafood, for example, has its export value doubling the figure of the same period last year, reaching US$42 million. PCs and electronic accessories increased by 232 per cent, standing at US$21.8 million. The figure was put at 49.86 per cent and over US$46 million for textiles and garments, and 28 per cent and more than US$30 million for woodworks.
Vietnam, in turn, imports mainly milk and dairy products, medicines, animal feed, chemicals, plastic, textile and garment materials, steel, paper and paper pulp and pesticide.
What do you think about potential for the export of Vietnamese goods to the Netherlands?
Even though the two countries’ trade exchange turnover, especially Vietnam’s export value, has increased sharply in recent years, the figure remains very modest in comparison with the potential of Vietnam and the Netherlands. Vietnam’s export value accounts for just 0.21 per cent of total import turnover of the Netherlands and Vietnam’s import value of US4314 million is just equal to 0.09 per cent of the Netherlands’ export turnover.
Some major Vietnamese goods exported to the Netherlands have gained a high export value with a high growth rate in recent years, but their turnover accounts for just a small proportion in the Netherlands’ import turnover of the goods. At the same time, there are some groups of other products, which the Netherlands has to import each year, such as glass ware, boats and ships, floating structures, metal tools and instruments; toys, games, sportswear and accessories, plastic products, screw products, carpet and floor products; pottery and ceramic wares; meat, fish, mollusc, vegetables and fruit, and nuts. Therefore, there is still a large room for Vietnam to increase the export turnover of the goods in the Netherlands.
It is, however, not easy to enter a market for increasing export turnover. What should Vietnamese enterprises learn before entering the Dutch market and what are difficulties and opportunities for them?
The Netherlands has provided support for imported goods from developing countries by providing free information about the EU and Dutch market via a database of the Dutch Centre for Promotion of Imports from Development Countries (CBI). The Dutch Government has developed training programmes for capacity building for enterprises in developing countries, including Vietnam, which export products to the Netherlands and the EU. Under a co-operation programme between the Netherlands and other countries, the Netherlands has policies and programmes on helping develop and implement projects on job and profit creation in export countries. PSOM (Programme for Cooperation with Emerging Markets), for example, may provide non-refundable aid equal to 50 per cent of value of projects, whose value are constrained at EUR1.5 million.
Other advantages include seriousness of Dutch enterprises in trade and investment relations. Furthermore, political, economic and investment co-operation has witnessed a fine development in recent years. The Netherlands is eighth in terms registered capital and sixth in realised capital among foreign investors in Vietnam. Dutch enterprises’ investment capital reached around US$2 billion. Achievements in investment ties between the two countries may serve as a solid foundation for export growth as many projects developed by Dutch enterprises are export-orientated. At the same time, Vietnam has increased and used effectively its investment in trade promotion and export market development. Also, the fact that Vietnam is expected to join the World Trade Organisation (WTO) in late 2006 will facilitate the access to international market of Vietnamese goods.
There are, nonetheless, some difficulties as Vietnamese enterprises have to cope with fierce competition from other countries, which export the same products as textiles and garments, seafood, rice and coffee, to the market. EU countries’ protection policies and anti-dumping tax rates against footwear, bicycles and bolts have produced negative impacts on production capability of local manufacturers and caused troubles to the export of the products to the market.
What measures do you think Vietnamese enterprises should take to exploit market advantages, and increase export prices and value?
It is important to create a suitable structure of exports which are of high quality and competitive in the international market.
Boosting trade promotion and marketing with a regular participation in fairs and exhibitions, and developing long-term partnership are also important for enterprises to learn about market tendencies and to develop their business co-operation.
At the same time, co-operative ties should be strengthened among Vietnamese and Dutch business associations and trade promotion agencies, promoting information and visit exchange, and match making between Vietnamese and Dutch enterprises.
What has the trade mission in the Netherlands done to help Vietnamese enterprises?
The trade mission of the Vietnamese embassy in the Netherlands was established in the final half of 2005. Since then, the mission has carried out many activities to boost trade, investment and investment promotion with the Netherlands and provide support for Vietnamese and Dutch enterprises. Accordingly, we provide information about the Vietnamese markets and enterprises for Dutch and Vietnamese exporters and importers. For example, we have provided a list of Dutch seafood importers for some departments of trade and seafood exporters in Vietnam, as well as the website of the Vietnam Trade Promotion Agency. We have prepared and provided a list of fairs and exhibitions in the Netherlands and useful websites for the Ministry of Trade and the Vietnam Trade Promotion Agency to announce to Vietnamese enterprises. We have helped Vietnamese enterprises check legal information and financial status of Dutch enterprises.
We have promoted company matching activities, helping Vietnamese enterprises introduce their products and services to the EU and the Netherlands in particular. We have helped local enterprises to seek Vietnamese partners via portals.
Some useful addresses for Vietnamese and Dutch enterprises:
- The Dutch Agency for Promotion of Imports from Development Countries (CBI)
- The (free and membership paid) ‘match making’ zones on the website of the Netherlands Foreign Investment Agency
- The Dutch Chamber of Commerce
- The Dutch Agency for Promotion of Imports from Development Countries
- The Agency for International Business and Co-operation (EVD):
- The Dutch Embassy in Hanoi
- National E-commerce Portal (Vietnam)
- The Vietnam Trade Promotion Agency
- The Ho Chi Minh City Centre for Product Introduction
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