Dutch businesses look favorably upon Vietnam

At a meeting with Prime Minister Pham Minh Chinh during his official visit to the Netherlands in December, Mr. Dolf van den Brink, Chairman of the Executive Board and CEO of Heineken N.V., announced that the brewer will invest an additional $500 million in Vietnam over the next decade. It earlier signed an MoU with the Ba Ria-Vung Tau Provincial People’s Committee in the country’s south to further expand its Vung Tau Brewery - the largest in Southeast Asia - with an additional $142 million in the 2023-2025 period. The extra capital brings its total investment in the brewery to over $500 million.

Investment boost

Similarly, Damen Shipyards Gorinchem is planning to invest an additional $100 million into Vietnam’s shipbuilding industry in order to expand its cooperation with the country and its enterprises in the promising field. “We also hope to assist Vietnam in developing a low-carbon transport network,” said Mr. Arnout Damen, CEO of Damen Shipyards Gorinchem.

Another Dutch giant in the wind power sector, the Pondera Group, met with leaders from central Quang Binh province in December to cooperate in wind power projects. “The Pondera Group has been operating in renewable energy and developing wind power in the Netherlands as well as in European countries,” said Mr. Eric Arends, Director and Vice Chairman of the Pondera Group. “Therefore, the Pondera Group is seeking investment opportunities and cooperation with Quang Binh province to deploy onshore and offshore wind power projects.”

The Pondera Group has also conducted surveys on wind power projects in other localities around Vietnam such as Ba Ria-Vung Tau and northern Thai Binh and Bac Giang provinces. It has proposed a 700 MW wind power project in a coastal area straddling Tien Hai and Thai Thuy districts in Thai Binh and is also eyeing a high-tech agricultural project in the province.

Figures from the Foreign Investment Agency (FIA) at the Ministry of Planning and Investment (MPI) show that total Dutch investment in Vietnam reached $702.2 million in 2022. In total, the country has 410 valid projects in Vietnam with total capital of $13.71 billion, ranking it tenth out of 139 countries and territories with foreign investment in Vietnam. The Netherlands is currently the largest investor among EU countries and is Vietnam’s second-largest trading partner in the bloc. It is also a major export market for Vietnam and an important gateway for Vietnamese goods entering the EU.

Dutch businesses with huge investments in Vietnam such as Unilever, De Heus, Heineken, FrieslandCampina, and AkzoNobel were not only present in Vietnam quite early but also view the country as boasting potential for expansion. For example, Heineken has poured $1 billion into Vietnam and its joint venture in the country operates six breweries with more than 3,000 direct employees and over 150,000 indirect employees. As Vietnam has made strong commitments to respond to climate change, with a target of reaching net-zero emissions by 2050, Mr. van den Brink emphasized that Heineken wants to make an active contribution in this endeavor.

Bright future

In order to boost cooperation between the two countries as well as the scale of investment by Dutch enterprises in Vietnam, the two have agreed to continue effectively implementing the EU-Vietnam Free Trade Agreement (EUVFTA) and to turn both countries into transshipment hubs in their respective regions. They will also promote and deepen bilateral cooperation within the framework of the strategic partnership on climate change adaptation and sustainable agriculture and expand cooperation in security and national defense, culture and tourism, transport, science and technology, and education and training. Prime Minister Chinh therefore proposed that the Netherlands soon ratify the EU-Vietnam Investment Protection Agreement (EUVIPA) and encourage its enterprises to further their investment in Vietnam in seaports, shipbuilding, logistics, and strategic infrastructure.

Ms. Ingrid Thijssen, President of the Confederation of the Netherlands’ Industry and Employers (VNO-NCW), noted that the organization is helping Dutch businesses and corporations invest effectively in Vietnam. She appreciates the country’s efforts to further improve its business environment and suggested the two sides promote and strengthen economic, investment, and trade cooperation, especially in areas where the Netherlands has strengths and Vietnam has advantages.

In order to continue to attract investment from the Netherlands in general and Dutch businesses in particular, Prime Minister Chinh suggested that the VNO-NCW continue to act as a bridge to help Dutch businesses invest in Vietnam, especially in high-technology, innovation, digital transformation, green and clean energy, and agriculture. Sustainable industry, infrastructure, and logistics are also areas the Vietnamese Government has identified for investment attraction from the Netherlands.

With the goal of becoming an international logistics and transshipment hub, Vietnam boasts a geographical position capable of developing the necessary seaport network, with more than 3,200 km of coastline. In terms of support for Dutch enterprises, it has ensured stable policies for investors as well as social order and safety so that investors can be confident about doing business in the country.

Cooperation with Dutch businesses in the maritime sector, which is an advantage for Vietnam, will also help it achieve its goal of increasing investment in the field. “We heard Vietnam talk about a number of goals and express its will to become a leading maritime center in the world, producing goods for global supply chains,” said Mr. Bas van Bemmelen, Leader of the Boskalis Group. “The Boskalis Group and Vietnamese partners could establish a legal framework for sustainable sea sand mining.”

Prime Minister Chinh also said the Vietnamese Government is keen to continue reforming administrative procedures, improving the investment environment, and perfecting institutions and policies to suit the conditions and interests of all parties. It has pledged to create favorable conditions for and help Dutch enterprises conduct long-term business and investment in the country, thus contributing to promoting bilateral economic cooperation.

Vietnam is also striving to become a developing country with modern industry and high middle-incomes by 2030 and a developed, high-income country by 2045. To reach such goals, it has identified three strategic breakthroughs: institutions, human resources, and strategic infrastructure. Prime Minister Chinh, therefore, suggested that foreign businesses and partners from the Netherlands support Vietnam in technology transfer, experience sharing, and high-quality human resources training.