Dutch businesses excited about Vietnam expansions

Guido van Rooy, Executive director Dutch Business Association Vietnam

Our goal is to help Dutch entrepreneurs succeed in Vietnam, whether they be members or Dutch/Vietnamese market entrants. Via our membership structure, information sharing, and business events, we provide a platform for companies to connect and become sustainable partners.

The Dutch and the Vietnamese have many similarities, and the bond between our two countries is growing stronger and stronger. So is our business platform, that in 2023 has broken through 150 members. Our country, small as it may seem, is the largest EU investor in Vietnam and the second-largest EU trade partner only after Germany. The EU-Vietnam Free Trade Agreement accelerates the busy trade interactions between our nations.

The similarities between the Netherlands and Vietnam make us natural partners in many fields. Both our countries are world players in the export of agricultural products and thrive through an open global trade environment. As the world is currently facing major environmental challenges that will only become more pressing in the coming decades, our shared spirit of entrepreneurship reaches beyond the realms of solely economic growth and welfare.

As delta countries, we must both face the challenges and opportunities presented by climate change. We are both coastal states with a strategic location in regional markets, making us natural partners in maritime affairs, transport and logistics. Our current way of living is very demanding on nature’s capacity and vital resources such as water, energy and food. We need to transition from fossil fuels to renewable energy sources, harnessing the power of the sun, wind, and water. It is time for a green transformation across the board, focusing on the circular economy, waste management, sustainable agriculture, and water purification.

Over the years, many Dutch companies have invested in Vietnam and achieved significant success in various industries, including agriculture, logistics, and technology.

Another prime example of a successful Dutch business in Vietnam is Damen Shipyards. The business started in Vietnam in 2002, and 10 years later, with an investment of €65 million ($71 million), the joint venture Damen Song Cam Shipyards was formed. To date, more than 450 boats have been delivered from the shipyard production site. The shipyard plans to increase its production capacity by half in the next few years, adding 350 direct employees and 500 additional indirect employees.

IntES, on the other hand, is an engineering firm from the Netherlands that provides solutions for engineering challenges across the globe. The firm has been involved in many industrial projects in Vietnam, including the design and construction management of breweries, food processing plants, chemical plants, oil and gas facilities, and electronics manufacturing plants.

IntES is known for its expertise in managing complex projects and systems and its ability to find innovative and sustainable solutions to engineering challenges. The company has also established partnerships with firms in Vietnam, Europe, and other countries in Southeast Asia, which has allowed it to leverage local and international knowledge and expertise while providing value to its clients.

The Netherlands is also home to many interesting startups that aim to accelerate the digital transformation of companies and sectors. Vietnam’s rapid economic growth in recent years has garnered attention from international businesses, with many likening the Southeast Asian nation to a waking dragon. Cofano, a technology-driven firm, is focused on harnessing the power of Industry 4.0 to enhance Vietnam’s logistics sector.

By offering advanced enterprise software that enables digital twins of domestic and regional operations, Cofano Asia is streamlining water, road, rail, and port logistics.

Collaboration with customers, users, and supporters has been the cornerstone of Cofano Asia’s success. One such partnership with Gemalink terminal, a subsidiary of Gemadept Corporation, has led to the development of Rivergate, Vietnam’s first port community platform.

Additionally, Cofano Asia’s membership with the Dutch Business Association here in Vietnam has facilitated the company’s establishment and fostered valuable connections within the Vietnamese business community. Key lessons learned from Cofano Asia’s experience include the importance of patience and allowing partners to think over their strategy and decisions, as well as understanding that relationships are as vital as a great product.

It can be said that a stellar product without a strong relationship is like a high-performance car without fuel – unable to reach its full potential.

As a business platform, we also receive feedback from our members. We share this back in various ways: through our Orange Business Book, for example, which is a bonding of all investment plans and challenges that our members have in Vietnam, which we frequently update and share with the Vietnamese lawmakers.

We also deal with feedback through partners at the embassy and Consulate General, who are frequently in top-level dialogue with Vietnamese authorities; and the European Chamber of Commerce EuroCham, which publishes a yearly Whitebook to highlight key issues from European businesses per sector.

The alliance of the Dutch and Vietnamese governments, businesses, knowledge institutes, and engaged citizens is key to a responsible and sustainable future. Advances in technology are allowing us to connect with people from all over the globe and access information like never before, and so the connection between the Dutch and the Vietnamese can be closer than ever before.

Dutch firms plan to invest in shipbuilding and logistics projects Many Dutch groups have the intention to invest in shipbuilding and logistics projects in Vietnam to help the Southeast Asian country become a logistics centre and international freight forwarding hub.

Dutch economic relations rising ahead of PM’s visit Prime Minister Pham Minh Chinh will pay an official visit to the Netherlands on December 13. Dutch Ambassador to Vietnam Kees van Baar spoke to VIR’s Thanh Tung about the trade and investment prospects between both nations.

Dutch firms offer suggestions to HCM City to draw investment Dutch enterprises have suggested Ho Chi Minh City improve its investment environment, develop transport infrastructure and connectivity, hold trade promotion activities, fight climate change and improve its urban living environment.