At the first deputy ministerial-level political consultation between Vietnam and the Netherlands organised in The Hague last week, Vietnamese Deputy Minister of Foreign Affairs Le Thi Thu Hang and her counterpart Marcel De Vink declared that the two countries have effectively implemented their current cooperative frameworks, particularly strategic partnerships on climate change adaptation, water management, and sustainable agriculture and food security.

The two officials agreed that Vietnam and the Netherlands have strong foundations and conditions to lift their relationship to a new high in a more effective and sustainable manner, said Vietnam’s Ministry of Foreign Affairs (MoFA). “The two sides have agreed to continue providing more support for their respective business communities to expand investment in many potential sectors such as shipbuilding, maritime logistics, wind energy, high-tech agriculture, digital technology, semiconductors, digital economy, circular economy, and logistics,” the MoFA added.

The two officials also committed to effectively carrying out the EU-Vietnam Free Trade Agreement (EVFTA), diversifying goods and markets, and responding to global and regional fluctuations.

Taking effect in 2020, the agreement will mutually remove as much as 99 per cent of the tariffs within 10 years. Duty was eradicated from 65 per cent of EU exports to Vietnam and 71 per cent of Vietnamese exports to the EU, immediately after the EVFTA became valid.

Last year, bilateral trade between Vietnam and the Netherlands hit $113.77 billion, up 26 per cent on-year – making the Netherlands the third-largest trade partner of Vietnam in Europe. In the first five months of this year, the figure was $5.54 billion.

According to the Vietnam Customs, the Netherlands is a leading transit point in Europe and the wider world for products such as fruit and vegetables. In particular, the EVFTA is giving many new opportunities for Vietnamese and Dutch enterprises.

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

Hang also suggested that the Netherlands open its door wider to Vietnamese agricultural products, and soon adopt the EU-Vietnam Investment Protection Agreement so that enterprises from the two countries can expand investment and trade cooperation. The agreement embraces protective clauses and dispute resolution mechanisms similar to those found in bilateral investment protection agreements between EU member states and non-EU countries. It will replace the current 20 bilateral investment protection agreements between Vietnam and EU member states. So far, 18 out of 27 EU member states have passed it.

Hang also proposed that the Netherlands persuade the EU to remove its “yellow card” on Vietnamese seafood exports, given Vietnam’s significant progress in combating illegal fishing.

At present, Vietnam and the Netherlands are cementing their bilateral ties in many sectors, including seaport development. According to the Dutch Embassy to Vietnam, the Netherlands has outstanding expertise and experience in port development and logistics with some companies already have a track record in Vietnam for decades. With increasing trade between Vietnam and Europe, there is an increasing risk of port congestion, while developing new ports is costly and time-consuming.

The Netherlands is also the biggest EU investor in Vietnam, with 465 valid projects costing over $15 billion cumulatively as of late June. The projects are mostly deployed in the southern region, with many operating very effectively like Heineken, Unilever, Royal Dutch Shell, FrieslandCampina, Akzo Nobel Coating, and Philips, among many others.

“The Dutch business community has made very positive responses to Vietnam’s investment and business climate, which has become increasingly favourable,” said Dutch Deputy Foreign Minister Marcel De Vink.

Hang and De Vink also agreed that there remains great potential for the two countries to swell bilateral cooperation in education, science and technology, defence and security, transportation, culture, and tourism. The Vietnamese official proposed the Netherlands support Vietnam in training high-quality workers.

The two officials also agreed to consider granting visa exemption for diplomatic passport holders and easing visa and travel procedures for other passport categories in their respective territories.

At present, Vietnam and the Netherlands have also pushing up transportation cooperation. Specifically, they cooperate mostly in the maritime and waterway industries, as well as the aviation sector. Dutch-backed Damen Group and Vietnam’s Shipbuilding Industry Corporation established Damen-Song Cam Shipbuilding Co., Ltd. and invest in building the Damen Song Cam Shipyard, operating since 2014.

Dutch suppliers to giant chipmaker ASML Holding N.V. are also exploring market opportunities in Vietnam. ASML Holding specialises in the development and manufacturing of photolithography machines 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 Ho Chi Minh City’s Saigon Hi-Tech Park.

Source: Vietnam Investment Review