Dutch PM Mark Rutte (left) with Vietnamese counterpart Pham Minh Chinh last week, photo VNA

Dutch Prime Minister Mark Rutte was in Vietnam last week to discuss further expansion of trade and investment ties between both countries with PM Pham Minh Chinh.

“Vietnam and the Netherlands emphasise science-technology and innovation as breakthrough fields in bilateral ties, while agreeing to maximise the potential for cooperation between the two countries in high technology, electronic circuit production, semiconductor devices, building digital platforms and telecommunications ecosystems, digital transformation, and human resource development,” said Vietnam’s Ministry of Foreign Affairs during the visit.

A group of 23 Dutch high-tech companies worked with Vietnamese partners to explore opportunities in the digital and semiconductor industries, among others. Many names included Banter, BESI, Brainport Industries, CodingChiefs, HQ Group, Incooling, InPhocal, Invest International, KMWE Group, Masévon Group, and NXP Semiconductors.

On October 31, BESI was licensed at Saigon Hi-tech Park in Ho Chi Minh City to implement a project costing nearly $5 million for first-phase advanced electronic component production. Until Q4 of 2024, BESI will complete assembly and labour recruitment, paving the way to begin production from 2025.

Last week, Vietnam and the Netherlands also agreed to continue promoting the bilateral strategic partnership on climate change adaptation, water management, and sustainable agriculture. They will also collaborate on offshore sand exploitation, green economic development, circular economy, climate change, human resources, and water resource management.

The Netherlands is the second-largest trade partner of Vietnam in Europe, with bilateral trade hitting $11.9 billion last year, up 32 per cent on-year. The figure reached $6.94 billion in the first eight months of 2023, with Vietnam’s exports of $6.5 billion and imports of $439.8 million.

The Netherlands is also the biggest EU investor in Vietnam, with 432 valid projects registered at $14.3 billion cumulatively as of October 20. 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.

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 a strategic partnership forged in 2014, they have implemented cooperation in farming, animal husbandry, and construction, as well as smart agricultural models adapting to climate change.

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

In addition, Vietnam and the Netherlands have also been pushing transport schemes. They cooperate in climate change in the maritime and waterway sectors and the aviation sector. Dutch-backed Damen Group and Vietnam’s Shipbuilding Industry Corporation established Damen-Song Cam Shipbuilding Co., Ltd. and have invested in the shipyard since 2014.

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

“We are proud that the Mekong Delta Master Plan has been designed with the help of Dutch experts and are committed to assist Vietnam with further implementation. Already there are several concrete projects with the involvement of Dutch companies and experts,” Dutch Ambassador to Vietnam Kees van Baar told VIR.

The current project portfolio in the Mekong Delta amounts already more than $53 million with a focus on climate change, water and agriculture. Also, in renewable energy the Netherlands is gaining a bigger footprint, for instance in offshore wind and waste to energy solutions.

“There are, however, a number of challenges ahead. For instance, in the distribution of renewable energy in the case of of overproduction, Vietnam still lacks a regulatory framework and the possibility for companies to share resources,” the ambassador said.

“The Netherlands can set the right example in technology and share best practices for the benefit of not only our economies but also the climate.”