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Vietnam – Netherlands trade and investment cooperation: several engcouraging results

Wednesday, March 16, 2016

Together with positive results in investment cooperation, trade relation between Vietnam and Netherlands has been growing in the past years. Trade revenue between two countries is significant and increases every year, and Vietnam always experienced trade surplus with this market.  

Vietnam continues its trade surplus

In 2015, the Netherlands passed the UK to become the second largest export market of Vietnam in EU with export revenue of 4.76 billion USD, an increase by 26.5% in comparison to 2014.

According to statistics of General Department of Vietnam Customs, Vietnam – Netherlands two-way trade revenue in Jan 2016 achieved 538.95 million USD, an increase by 28.5% in comparison to the same period in 2015. Of which, export revenue of Vietnam to Netherlands gained 50.93 million USD, an increase by 36.4% in comparison to the same period last year. It means that Vietnam continues to maintain trade surplus to Netherlands with a great amount of 437.08 million USD since the first month of the year.

A variety of goods are exported to Netherlands, of which key export products comprising of computers, electronics and spare parts, mobile phones of all kinds and accessories, footwear of all kinds, textiles and garment, machinery, equipment, tools and spares, cashew nuts, pepper, coffee, vegetables and fruits…

In the first month of the year, almost all export products from Vietnam increased in comparison to the same period last year. Notably, few product groups with insignificant export revenue surged impressively.

Computers, electronics and spare parts were the leading export products from Vietnam to the Netherlands in the first month of the year, with export revenue of 165.68 million USD, an increase by 86.9% in comparison to Jan 2015 and accounting for 34% of total export revenue from Vietnam to this market.

Following was mobile phones of all kinds and accessories with export revenue in Jan 2016 achieved 73.4 million USD, an increase by 6.5% in comparison to the same period last year and accounting for 15% of total export value from Vietnam to the Netherlands.

Despite of a light reduction, footwear of all kinds still ranked the third among export product groups from Vietnam to the Netherlands in Jan this year with export revenue of 51.01 million USD, a decline by 1.8% in comparison to the same period last year and accounting for 10.5% of total export revenue from Vietnam to this market.

Export product groups from Vietnam to the Netherlands which experienced a rise in revenue in Jan 2016 consisting of textiles and garment with nearly 42.97million USD (8% up); machinery, equipment, tools and other parts with 23.02 million USD (23.9% up), cashew nuts with 21.88 million USD (52.9% up); handbags, wallets, suitcases, hats and umbrellas with 14.19 million USD (43% up), plastic products with 11.91 million USD (6.6% up); seafood with 10.89 million USD (1.4% up); timber and wood products with 10.1 million USD (16.9% up); steel with 6.22 million USD (1.6% up); vegetables and fruits with 3.76 million USD (36% up); rattan, bamboo, sedge and carpets with 2.64 million USD (47.5% up); ceramics and porcelains with 1.5 million USD (20.3% up); rubber products with 1.06 million USD (13.4% up); rice with 323.447 million USD (9.2% up) in comparison to the same period last year.

Especially, few product groups experienced a surge in export revenue in Jan this year such as transportation and spares with 3.14 million USD (increased 94.6 million USD); chemicals with 419,840 USD (increased by 155.4%); other normal metals and products with 418,097 USD (increased by 224.3%) in comparison to the same period last year.

However, revenue of some products dropped in the first month of the year such as pepper 4.6 million USD, a reduction by 22.7%, coffee 1.58 million USD (30.3% down); rubber 1.34 million USD (45.1% down); toys, sport equipment and spares 1.26 million USD (4.7% down); textiles, garment, leather and footwear materials and accessories 768,159 USD (39.5% down) in comparison to the same period last year.

In parallel with export promotion to the Netherlands, in the first month of the year, Vietnam also imported a number of products from this market including machinery, equipment, tools and other spares; automobile components and spare parts; pharmacies, chemical products, steel originated products, milk and dairy products…

Together with impressive results on trade relation, investment relation between Vietnam and the Netherlands also witnessed positive outcomes since the beginning of the year.

According to Foreign Investment Agency (Ministry of Planning and Investment), in the first two months of 2016, the Netherlands had 1 new investment project to Vietnam with registered capital achieved 6 million USD. There are 255 investment projects to Vietnam by the Netherlands which remain in effect by 20 Feb 2016 with total registered investment capital of 8.15 billion USD. Thanks to such results, Netherlands ranks the 10th among nations and territories having investment to Vietnam.

EVFTA opens cooperation opportunities

There exist a number of opportunities and potential to strengthen trade and investment cooperation between Vietnam and the Netherlands.

According to experts, the Netherlands is not only a potential market but also an entrance gate and a connection center to deliver goods to EU market. No small part of Vietnam export products to the Netherlands aim to enter other EU countries.

Especially, EU-Vietnam Free Trade Agreement (EVFTA) negotiation was officially completed at the end of last year. When signed and come into effect, EVFTA will create favourable conditions for Vietnam and EU, including the Netherlands, to develop trade and investment cooperation. The Agreement is considered a great opportunity for businesses as well as investors of both Vietnam and the Netherlands when trade barriers become more relaxing such as removal of tariff and non-tariff barriers, promotion and protection of investors’ interests, protection of geographical indications, permission to EU companies to attend project bidding in Vietnam, establishment of a code of conduct in trade dispute resolution…

Specifically, in regard to export, the commitment of intensive market opening in EVFTA will be an important lift to further export market expansion, especially products of both countries’ strengths such as Vietnam textiles and garment, footwear, agriculture and seafood products, wooden products  and EU, including Netherlands, machinery, equipment, automobiles, alcohol drinks, some agriculture products. Vietnam and EU will remove import tariffs of more than 99% tariff lines. Regarding a few remaining tariff lines, quotas or partly tariff removal will be applied by both parties.

In investment sector, EVFTA’s commitments to ensure a more open-minded and favourable business and trade environment will encourage investment capital from EU in general and the Netherlands in specific to high quality projects in Vietnam. Economic prospects of Vietnam in recent time have emerged as a highlight in market fluctuations.   The signing of EVFTA will promote a new investment wave from the Netherlands enterprises to the potential Vietnam market in the near future.


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