Netherlands adds to investment interest

Netherlands adds to investment interest

Vietnam and the Netherlands are witnessing a rise in trade and investment thanks to positive impacts from the former’s deal with the EU, with Dutch companies eager to expand performance in Vietnam.

Vietnam Customs in late May reported that Vietnam’s exports to the Netherlands in the first four months of this year hit $4.1 billion, up 4.6 per cent as compared to the same period last year.

Dutch companies are famed for tackling the tough challenges, photo Le Toan

The product groups taking the lead in the export turnover included computers and spare parts ($1.01 billion – up 12.3 per cent on-year and accounting for 24.4 per cent of total export value); and machinery, equipment, and tools ($735.7 million – down 9 per cent on-year and holding 17.7 per cent of total).

Notably, a number of items with on-year high growth consisted of coffee (66.3 per cent); cashews (32.7 per cent), and aquatic products (16.3 per cent).

According to Vietnam Customs, the Netherlands is considered a gateway to the EU market. In particular, the EU-Vietnam Free Trade Agreement is bringing many new opportunities for Vietnamese and Dutch businesses.

With 60 per cent of Vietnamese exports destined for European markets entering the EU via Rotterdam port, the Netherlands plays an important role in supporting and facilitating the further growth of the EU-Vietnam trade.

At present, Vietnam and the Netherlands are cementing their bilateral ties in many sectors, including seaport development. The Netherlands has outstanding expertise in port development and logistics, with some companies already having a track record in Vietnam for decades

The Netherlands is the biggest EU investor in Vietnam, with 464 valid projects registered at more than $15 billion cumulatively as of late May. The projects are mostly implemented in the southern region, with many operating very effectively such as Heineken, Unilever, Royal Dutch Shell, FrieslandCampina, Akzo Nobel Coating, and Philips, among others.

For example, this year, FrieslandCampina marks a significant transformation in its 30-year journey alongside Vietnamese families. In addition to unveiling a new visual identity, Dutch Lady has enhanced its product formula, underscoring its commitment to tackling national nutrition challenges, particularly the issue of “hidden hunger” in children.

Establishing a comprehensive partnership in 2019, the two countries have also been cementing ties in sustainable agriculture and food security. Specifically, within the framework of the strategic partnership on sustainable agriculture and food security forged in 2014, they have actively implemented cooperation in the fields of farming, animal husbandry, and construction, as well as smart models on adapting to climate change.

The Netherlands is currently a major investor in Vietnam’s agricultural sector and is gradually helping Vietnam build sustainable agricultural production, increasing the value of export goods in the fields of vegetables, fruits, horticulture, livestock, and aquaculture.

In addition, Vietnam and the Netherlands have also pushing up transportation cooperation. Dutch-backed Damen Group and Vietnam’s Shipbuilding Industry Corporation have worked together to operate Damen-Song Cam Shipbuilding Co., Ltd. and invest in building the Damen Song Cam Shipyard since 2014.

Dutch suppliers to chipmaker ASML Holding are also exploring market opportunities. ASML Holding specialises in the development and manufacturing of photolithography machines which are used to manufacture computer chips.

ASML supplies chips to tech giants like TSMC, Samsung, and Intel, which is now operating a chip test and assemble facility in the Saigon High-Tech Park.

The Netherlands has also committed to support Vietnam in carrying out the latter’s Mekong Delta Master Plan towards 2030 and with a vision to 2050, and in developing a circular economy featured by the popular use of renewable energy.

The current project portfolio in the Mekong Delta amounts already more than €50 million ($57 million) with a focus on climate change, water, and agriculture. Elsewhere, in renewable energy, the Netherlands is gaining a bigger footprint, for instance in offshore wind and waste to energy solutions.

Earlier this year, Prime Minister Pham Minh Chinh met with Dutch counterpart Dick Schoof in Davos, proposing that the Netherlands encourage Dutch businesses to increase investment in the industries they are strong at in Vietnam such as seaports, shipbuilding, logistics, and infrastructure; support the European Commission’s removal of its “yellow card” warning against Vietnam’s aquatic product exports; and assist the Southeast Asian nation to develop seaports, airports, and innovation centres.

VIR