Eurocham lunch meeting
Speech by the Netherlands' Foreign Trade Minister, Mr. Frank Heemskerk, at the Eurocham lunch meeting, Hanoi, March 17, 2008
Ladies and gentlemen,
First of all, I want to thank Eurocham chairman Alain Cany for his graceful invitation to attend this luncheon meeting. When abroad, I am always happy to talk to local entrepreneurs on how to do business with the Netherlands, and to representatives of Dutch and European companies to learn about local business practices.
Today, I would like to talk to you about the future of the relationship between Vietnam and the Netherlands. Ties between the two countries are changing. This is, I think, primarily due to the tremendous changes that have taken place here in Vietnam over the past two decades.
I don't have to remind you that in 1986, the Vietnamese government launched its economic reform policies known as doi moi. As the saying goes, from that moment on the country never looked back - and economic growth took off at a breathtaking pace. Who could have predicted at the time that in 2007, the management of the Vietnam Posts and Telecommunications Group would announce the launch of the first Vietnamese space satellite (CNN, March 12, 2008)?
Giant steps forward, ladies and gentlemen! We can attribute the Vietnamese success story in the first place to the hard work of its young and ambitious population. Small and mid-sized companies in particular have been drivers for economic growth. On behalf of my government and my people, I offer heartfelt compliments for their enormous achievements.
But I also want to note that international donors, among them my own country, have played a significant role in facilitating economic development in Vietnam.
The global economic equilibrium is changing. Over the past two decades, the "old countries" in Europe grew by 23 percent. In the same period, Asia posted an 87-percent growth. Asia is catching up very quickly and this has its indisputable effect between the European Union and Asia, and between Vietnam and the Netherlands.
Today, we see growing trade and investment relations. Dutch exports have tripled over the past four years and we are currently the biggest EU investor in this country (1.7 billion euros).
Although the ties between our countries have been defined mainly by our development relationship, we now see a fast movement towards a mature economic relationship, a partnership among equals. That is very good news.
I realize, ladies and gentlemen, that Vietnamese FDIs in the Netherlands are somewhat further down the line. I appreciate that the Vietnamese business world is first and foremost looking at its South-East Asian neighbors when it comes to investing abroad.
I was nevertheless pleased that some Vietnamese companies, Vinalines Shipping among them, are considering to open representative offices in the Netherlands. I believe they are making the right choice, for the Netherlands, with its strategic position at the rim of the Eurasian landmass, is truly the Gateway to Europe.
In establishing a mature partnership - and in order to bring it into full bloom - we need an active attitude of both the public and the private sectors. Allow me to elaborate a bit on both aspects.
First the public sector. I strongly believe that governments should not interfere directly in the private sector. But what governments can do, is to create a favorable business climate, an environment in which the business world can profitably thrive.
I am talking here about the obligations set by the World Trade Organization, about creating an adequate legal framework, and about protecting of intellectual property rights.
And last but certainly not least, I urge the Vietnamese authorities to do their utmost to eradicate factors that obstruct trade, corruption prominently among them.
Ladies and gentlemen!
The private sector also has an important part to play in securing a full-blown economic partnership between Vietnam and the Netherlands. I want to emphasize here that we Dutch are not pursuing a "hit-and-run" strategy aimed at making a quick buck.
On the contrary, we are looking at long-term, sustainable Foreign Direct Investments (FDIs) here. Sustainable investments in human capital, research and development, safe and healthy working conditions, and innovative products and services - to name some examples.
That is exactly why I am here in Vietnam with my Development Cooperation and a large business delegation: promotion of international business with a keen eye for the Millenium Development Goals.
On the other hand, we are expecting that local and foreign business counterparts will also exercise their Corporate Social Responsibilities (CSR).
Ladies and gentlemen!
In my view, CSR is more than just an obligatory chapter in the annual report, or part of the Public Relations efforts of a company. In my view, CSR must be comletely embedded in any company's business practices, product development and production processes. It is not only about the physical environment, but also about the social environment, about the position of a company in society as a whole.
I want to stress here that the European guidelines on these non-trade matters do not form some hidden trade barrier, meant to keep out products and services from outside Europe.
On the contrary. Exercising your CSR is very profitable when doing business in Europe. European consumers - the Dutch among them - attach great importance to CSR-related issues such as the environment, climate, animal welfare, labor relations, working conditions, child labor and the like. And I think they are entirely right.
In short: paying attention to those consumer concerns makes good business sense.
To help you understand the nature of our consumers' CSR-related demands, the Dutch Economic Affairs Ministry is developing a CSR Tool Kit, which will be available shortly after this visit. It contains tips and tools on how to pursue responsible business practices in Vietnam. I'll make sure that Eurocham will get one soon.
To sum it up: CSR will greatly improve your business opportunities, here in Vietnam and beyond. Practicing it will ease your way into the hearts, minds and purses of more than 15 million consumers in the Netherlands, and many more of them in the rest of Europe.
Thank you.