::Netherlandsembassy::Economic Affairs: Trade and Investment

8.1 Holland: Pioneers in International Trade

Mention the Netherlands –also known as Holland– and many people will think of clogs and windmills. The Dutch do not mind, but if truth be told, the Netherlands is traditionally a country of commerce and transport. By the 17th century, Amsterdam –the capital of the Netherlands– was already the largest combined storage area and port in the world. Amsterdam also boasted the world’s first stock exchange. The 17th century has long since passed, but the Netherlands’ leading position as a transhipment country is still alive and well.

Economic growth

First estimates point to an economic growth of 3.1 percent in the first quarter of 2008, slightly lower than overall economic growth in 2007. The volume of goods imported and exported continued to rise with the balance of trade in the advantage of the Netherlands. Overall export of goods amounted to EUR 347 billion in 2007 (EUR 319 billion in 2006), while the value of overall import was EUR 307 billion (EUR 285 billion in 2006). These figures correspond to a year-on-year growth rate of 9.1 percent for export and 7.6% for import in 2007. Recent figures by Eurostat show that last year, the Netherlands was the EU’s third exporting country after Germany and France. One of the reasons is the fact that the Netherlands plays an important part in the distribution of goods to other European countries.

Transhipment country par excellence

To give you an idea of just how large the Dutch logistics sector is, consider the following. The earth is home to circa 6.4 billion people, making the Dutch population of 16 million seems miniscule by comparison. These 16 million are only 0.267 percent of the world’s population, and yet the Netherlands is still the world’s sixth largest exporting country. Of course, such a small country cannot produce all the goods that it exports on its own. Put simply, that means that countless foreign companies opt to distribute their goods via the Netherlands, most importantly via Schiphol Airport, the third largest cargo airport in Europe, or Rotterdam Port, Europe’s largest port as well as the most modern. When it comes to importing, the Netherlands is the world’s eighth largest importing country.

Why foreign companies invest in the Netherlands

Next to being a transhipment country, the Netherlands also enjoys one of the highest penetration levels of broadband internet anywhere, as well as very attractive tax benefits for foreign companies. As such, reasons why foreign companies invest in the Netherlands are:

Dutch companies are internationally oriented as well. Dutch multinationals like Philips, Heineken, ING, AKZO Nobel, TNT and Ahold as well as partly Dutch multinationals such as Unilever and Shell are major foreign investors. Together, they have made the Netherlands the sixth largest foreign investor in the world.

Comparative advantages of the Netherlands

The Dutch economy has several sectors in which it has a comparative advantage. The Dutch companies in these sectors are true pioneers in international business. These sectors include:

Business to Business (B-2-B) promotion

The Dutch government tries to stimulate cooperation between Dutch and Bangladeshi companies via, amongst other, the following instruments:

Under the Private Sector Investment programme (PSI), subsidies are available for Dutch and foreign companies entering into long-term cooperation with local partners in developing countries. This means that if a company from Bangladesh wants to apply for a PSI project it needs to have an international project partner. The preferred sectors for Bangladesh are Agriculture and Agro Business, and Information Technology. However, this does not mean that projects in other sectors are not eligible under the PSI program in Bangladesh.

The objectives of PSI are to stimulate financial growth, create employment opportunities and generate income in developing countries. This is achieved by providing companies with an opportunity to make an innovative investment together with a local partner.

For more information see: www.evd.nl/psi (click eligible countries and choose Bangladesh)
Match Making Facility (MMF). Since the end of 2007, MMF provides Bangladeshi companies with the opportunity to find a Dutch partner for implementing joint activities.

Access to knowledge and skills

In addition to PSOM and MMF, capacity development among local business is stimulated via the Netherlands Management Cooperation Programme (PUM) and the Centre for the Promotion of Imports from Developing Countries (CBI). Under PUM, senior Dutch experts give businesses in developing countries tailor-made advice (www.pum.nl). The CBI provides businesses from developing countries with the knowledge, skills and approach they need to enter into trade relations with and export to the European Union (www.cbi.nl).

8.2 MatchMaking Facility (MMF)

Serious companies in developing countries are often on the lookout for reliable business partners abroad. The Development Cooperation Matchmaking facility puts those companies in touch with Dutch businesses operating in the same sector.

What is the Development Cooperation Matchmaking facility?

Serious companies in developing countries are often on the lookout for reliable business partners abroad. The Development Cooperation Matchmaking facility puts those companies in touch with Dutch businesses. The goal is to stimulate joint investment in your country.

The Development Cooperation Matchmaking facility is available to companies in your country and in more than 40 other countries in Africa, Latin America and Eastern Europe.

Your application
You must submit a proposal for cooperation with a Dutch company to the Dutch Embassy in your country. You must use a special form to do so (see the next paragraph).

Suitability check
The Embassy will consult with its local network to assess your proposal. Only proposals that receive a positive assessment will be sent on to EVD. Furthermore, proposals must be clearly formulated and well substantiated before being taken into consideration.

Your Dutch match
EVD, a Dutch government agency that provides support to businesses working in the international arena, will start identifying Dutch businesses that match your company’s profile.

Cooperation initiation, hiring a consultant
If a suitable match is found, you will receive a voucher worth EUR 5,000. You can use the voucher to hire a Dutch consultant who will help you explore and define the cooperative effort between you and your Dutch business partner. The consultant’s duties include arranging a visit for your company to the Netherlands and developing a joint action plan. All travel and accommodation expenses related to your company’s visit are your responsibility.

Evaluation
A half year after the visit, the consultant will conduct an evaluation to determine if the activities have resulted in a basis for further cooperation.

What is EVD?

EVD runs the Development Cooperation Matchmaking facility on behalf of the Dutch Minister of Development Cooperation.

Interested?

Would you like to be put in touch with a company in the Netherlands to mutually set up and run a solid project? Would you like more information about the Development Cooperation Matchmaking facility? Please contact the Economic Section of Embassy of the Kingdom of the Netherlands in Dhaka. DHA-EA@minbuza.nl.

8.3 Entering the Dutch market: support for Bangladeshi companies

The Netherlands embassy in Dhaka has limited time and scope to directly assist Bangladeshi companies that want to do business with or in the Netherlands. As such, Bangladeshi investors looking for trade and investment opportunities in the Netherlands are kindly advised to contact the Bangladeshi Export Promotion Bureau (www.epb.gov.bd/), the Bangladeshi embassy in The Hague or the Dutch Bangla Chamber of Commerce and Industries (DBCCI) for further assistance.

From the Netherlands’ government side, the CBI (Centre for the Promotion of Imports from Developing Countries) offers services to exporters and business support organizations (BSOs) in selected developing countries, including Bangladesh. The very insightful website of the CBI (www.cbi.nl) provides:

EU market information (various tools to keep exporters and BSO’s in step with the latest developments on the EU markets);

Company matching (on-line facility that links CBI-audited and assisted exporters in developing countries to reliable importing companies from the EU / the facility is exclusive for companies which are included in the database);

Export development (assisting entrepreneurs in developing countries in entering and succeeding on the EU market and/or consolidating or expanding their existing market share;

Training (e.g. export marketing and management, trade promotion);

BSO development (several institutional support modules tailored to the specific needs of selected organisations, countries and sectors).

In addition, interested investors could visit the following websites for more information:

www.minez.nl: The website of the Ministry of Economic Affairs provides information for entrepreneurs looking for trade and investment in The Netherlands (i.e. information on taxes, licenses and permits). Moreover, on this site you will find web links to the agencies of the Ministry of Economic Affairs, such as the statistical bureau (CBS) which offers statistical data on various themes (i.e. trade and industry off the Netherlands, economic data etc.).

www.hollandtrade.com: The website ‘hollandtrade’ provides information on all levels of the Dutch economy. You will find descriptions of new products, key facts and figures, upcoming events and general information about the Dutch and their ways.

www.evd.nl/ The website of the EVD (agency for international business cooperation) provides all kind of information on the Dutch market.

http://export-help.cec.eu.int: This website of the European Commission (EC) is an information resource for exporters from developing countries. The so-called ‘expanding exports helpdesk’ provides information on EU preferential import regimes for developing countries, detailed trade data for the EU and its individual member states, including the Netherlands and other authorities and organisations involved in trade operations and promotion.

In the www.hollandexports.com you can search for company contacts by product. Here you will find a list of companies trading (export and/or import). You are advised to contact them directly for business purposes.

Holland Trade Net is the Internet platform at which supply and demand from the import/export markets meet and also an easy way to make contacts, set up partnerships and acquire specific trade knowledge (www.hollandtradenet.nl)

BuVoHa (The Trade Information Office) promotes business by publishing free of charge offers and demands from firms abroad on the BuVoHa Internetsite and also in a monthly bulletin "BuVoHa Mededelingen", distributed free only to the members of the association in the Netherlands. (www.buvoha.com/web/eng/register.asp)