Potential Agricultural Cooperation

Although only 3 percent of the population works in the agricultural sector, the Netherlands has the third largest agricultural export output in the world. The Netherlands has the advantage of advanced technology in the field of agriculture and currently leads the world in greenhouse technology and plant genetics to ensure increased productivity, sustainable production and to adapt to climate change. It is also the largest exporter of plant breeding in the EU. This suggests that the Netherlands has a developed agriculture. The Netherlands’ companies in the agricultural sector have great influence on the agriculture of the world, particularly of developing agricultural countries like Vietnam.

Mr Simon van der Burg, Netherlands Consul General in Ho Chi Minh City, said that having a developed agriculture with many leading agricultural export products in the world, Vietnam has many favourable conditions to promote cooperation with the Netherlands in the field of agriculture. Recently, this collaboration is demonstrated through many students from Vietnam studying in the Netherlands in the field of agriculture, and Dutch experts in this field are also present in Vietnam. In Vietnam, Dutch companies are providing equipment, technology and services for agricultural businesses in Vietnam. The Ministries of Agriculture and Rural Development of the two countries also signed several cooperation agreements in the fields of agriculture, meat production, potato production and slaughtering technology.

Currently, Vietnam is one of 11 countries around the world testing the public-private partnership (PPP) model in agriculture, with the participation of 20 leading groups and companies in the world, including the Netherlands. According to the Department of International Cooperation of Ministry of Agriculture and Rural Development, PPP between Vietnam and the Netherlands in agriculture developed positively in the recent years, especially in the areas of fisheries, cocoa and coffee. Specifically, in order to enhance their competitiveness in exporting seafood, the Netherlands is ready to support Vietnam to become a full member of the Western and Central Pacific Fisheries Commission (WCPFC). PPP Cooperation is realized through the Netherlands participating in proposing coffee development program towards sustainable production and business in Vietnam by 2020.

Additionally, the Netherlands also supports Vietnam in developing national strategy to provide water for food and ecosystems, ensure food safety, sustainable tuna farming and join international fisheries agreements. The Netherlands also helps Vietnam carry out comprehensive studies to assess the environmental impact of catfish farming in the Mekong Delta region, thereby helping ease the world’s concerns about the impact of aquaculture production on the environment in this area.

According to economic experts, with advanced and modern technology, the Netherlands’ companies are supporting Vietnam's agricultural sector for sustainable development, stability and adding value to agricultural products. Most of the Netherlands’ businesses engaged in agricultural sector want to expand their operation and get profit through business links with countries strong in agriculture, including Vietnam.

In Vietnam, this connection receives favourable conditions because, while Vietnam has large yields and great agricultural potential, the quality and value are not high, so the harvest does not bring maximum profit and Vietnam faces difficulty competing on the world stage. The weakness of Vietnam's agriculture is that Vietnam has not yet taken advantage of technology and advanced and modern techniques. Meanwhile, the Netherlands is the country with high technology in agriculture. Therefore, the links and cooperation between the Netherlands and Vietnam in agriculture are necessary and appropriate. Especially in the current situation when demand for agricultural products of the world requires higher quality, and barriers to importing agricultural products are getting higher, so connection will benefit both sides.

To exploit the strong agricultural cooperation between the two countries, in early 2013, a delegation of the Netherlands’ leading agricultural enterprises such as ABC Logistic, Kooppert Biological, Hortimax, LBP BV, Nederlandse, Priva Asia, Eidder Driver and Stoop Flowerbulbs Holland visited Vietnam to find partners. These businesses brought to Vietnam innovative and advanced technology, to help increase value-added from seeds to processed food. A representative of the Netherlands business delegation said many Dutch companies have discovered the potential of agriculture in Vietnam market and would increase cooperation with Vietnam businesses to effectively exploit this potential. The survey market and seeking partners of Dutch agricultural business are the first great step, opening up prospects of future cooperation of the two countries’ businesses in the agricultural sector.

Source: VCCI

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