Vietnam-Netherlands: Towards More Mature & Sustainable Relations

 

The relation between Vietnam and Netherlands has been excellent in recent years. Especially in 2010, when the two economies were recovering from the international crisis, bilateral trade saw much progress. I am very confident that this positive trend will be continued and enhanced in 2011. 

 

In the period of 2009 - 2010, the figures Vietnam has reached are dreamt of by other countries. Our bilateral cooperation is going up slightly these years. Many major Dutch corporations have been successfully operating here, such as Friesland Campina, Philips, Heineken, Shell, Unilever, etc.

 

Bilateral trade between Vietnam and the Netherlands is flourishing. In 2009, Vietnam exports to the Netherlands valued nearly 1 billion, the main products being leather, textile, agricultural products, etc. In return, Vietnam imported dairy products, automobile parts, machinery and iron, steel and chemical products from the Netherlands.

 

One of the milestones for this positive trend of cooperation in recent years is the Vietnam-Netherlands strategic partnership agreement to deal with climate change and water resources management. The deal provides an important legal framework for Vietnam to gradually deal with the negative impact of climate change with assistance from the Netherlands.

 

In addition, I see that Vietnam has made remarkable development in its ports; the country has created an accessible and favourable transportation system. These are positive steps for trade exchange between Vietnam and the Netherlands. Although we both were badly impacted by the global economic crisis in 2008, the figures have been positive in 2009-2010. In recent years, both countries have been making efforts in promoting trade and investment, and also have been boosting education cooperation.

 

As you may know, the Netherlands is the 5^th largest exporter in the world and the 6^th largest investor worldwide. The Netherlands has strengths in agriculture, the maritime sector and water management. These indicate that Dutch investors have been investing strongly in Vietnam, especially in agriculture, energy and water sector. Before, the Netherlands used to be polluted, but for years now, the country has made great progress in wastewater treatment innovation. Vietnam and the Netherlands both face challenges with regard to coastal zone management, flood control and adaptation to climate change, so there is a solid basis for continued cooperation. I also know that Vietnam has been facing big challenges on the climate issue. One of these is to formulate a response to the threat of sea-level rise. The Netherlands is willing to provide advice, support or transfer knowledge, and experience in fields of delta technology and flood control to Vietnam.

 

Actually, Vietnam has received extensive development assistance from the Netherlands in the water and climate sector since 1998. Now that Vietnam is becoming a middle income country, the nature of that cooperation will shift away from development assistance. In fact, there will be increased opportunities for cooperation with knowledge institutes, civil society and the private sector. Vietnam is keen to benefit from Dutch knowledge and experience. The Netherlands has selected Vietnam as one of five delta countries for intensive cooperation in the field of water management and climate change adaptation.

 

At the same time, both countries is focusing on key priority sectors which represent a common interest for both Dutch and Vietnamese businesses, such as water (including water management, water supply and waste water treatment), agriculture (including horticulture, fishery and livestock industry), maritime (port development and ship building) and energy.

 

The Netherlands has a worldwide reputation for its high quality of higher education, while Vietnam has put extremely high priority on education. In reality, the Netherlands has started to support Vietnam educational sector since the 1970s. Till now, education is one of the important pillars of Vietnam-Netherlands bilateral relations. A cooperation agreement on the implementation of the Netherlands Initiative for Capacity development in Higher Education (NICHE) in Vietnam was signed in 2010. The NICHE will focus on Vietnam's higher education sector and on areas where there is a clear demand for specialized knowledge from the Netherlands, like agriculture, integrated water resource management and climate change. This is part of a broader cooperation programme between the Netherlands and Vietnam in the field of higher education.

In addition, Nuffic’s Netherlands Education Support Office (Neso) in Ho Chi Minh City promotes Dutch higher education in Vietnam and provides information to Vietnamese students interested in studying in the Netherlands.

 

Of course, the Netherlands always welcome all Vietnamese enterprises to come and invest. We have a supportive tax regulation system for foreign companies. However, labour costs in the Netherlands are still very high. I think this is one of the biggest challenges for Vietnamese companies if they want to invest in the Netherlands. What I would like to share is that they should focus on sectors that use fewer labourers, e.g. services or trading, and only invest in production when it requires skilled and specialized labour.