World Trade Promotion Organisations event
The Netherlands was host to the 7th edition of the World Conference of Trade Promotion Organizations, de zusterverenigingen van de EVD. Its general theme was 'Tomorrows TPO's: keeping pace with the drivers of change'. Speech by Minister of Trade mr Frank Heemskerk.
Ladies and gentlemen,
First of all I would like to welcome you to the Netherlands. I am very pleased the EVD is hosting this extraordinary WTPO event.
Until recently many may have argued that there were no alternatives to the free market and that member states have no influence whatsoever. However, this appears to be an incorrect assumption. Governments do indeed play a very important role. This is proved now in the credit crises and applicable to you as well. I would even say that Trade Promotion Organisations are vital to globalisation. In particular SMEs need professional trade support to seize opportunities and to cope with ever increasing international competition.
In the coming 15 minutes I would like to share with you our approach to promoting international business and cooperation. Four aspects will be highlighted:
- Combining trade promotion with innovation and attracting foreign investors in a dynamic manner;
- Holland Branding;
- Focus on countries and sectors with public-private partnerships;
- Corporate Social Responsibility as a competitive edge.
In the Netherlands, we believe in looking beyond trade promotion. Since January of this year, we have been charting a different course jointly with the EVD, which no longer only focuses on promoting trade. Currently, the EVD covers all fields of international business and cooperation: trade, attracting foreign investors and encouraging innovation.
How we accomplish this?
A fine example is High Tech Connections, an economic mission for innovative companies which I headed in September 2007. We organised this mission with an innovative approach: we asked Dutch companies to invite their interesting Dutch relations for this mission. Our counterparts, US colleagues, did the same. The result was overwhelming: hundreds of leading representatives from the Dutch and US industry, government bodies, universities and research institutes met in San Francisco. It involved exchanging knowledge, know-how and capital, all with the objective to create innovative solutions for existing challenges in both countries. HTC was a wonderful and innovative example of cooperation between government bodies and the private sector. It proved that actual steps towards technological innovation could be taken. And, again, a very good example of where the worlds of trade promotion, investment and innovation meet.
The second element of the Dutch approach consists of Holland Branding.
In today's globalised world, decisions on acquiring services and products may still be driven by objective product comparisons. But sentiments play an important role as well. This implies that in order to be different in this globalizing world, the image of a country is a very significant item..
Under the name Holland Branding, we convey a consistent image worldwide in accordance with what we really are and what we can actually do. A good example of Holland Branding is the film we showed you previously.
We present ourselves as "Pioneers in international business" and bring across the storyline of our economic branding strategy.
Looking at the area we occupy and our relative small population of 16.5 million, it can only be concluded that the Netherlands is a small country. But our performance ranks us among the most important global players. The Dutch economy ranks on number 16 of the list of best international economies. Moreover, we are the 6th largest exporter and the 6th foreign investor in this world.
In the background, you can see the projection of just some of economic activities that emphasize these characteristics and the Dutch scale of performance in several areas. Some will strike you as typically Dutch, others will not.
These pictures create an added value to the image of the Netherlands and they prove that the size of a country has nothing to do with being an international success. You can, for instance, distinguish yourselves in niches of the market where you can excel.
As I believe sustainability is one of the qualities that will become increasingly valued in this time of globalization and climate change, Holland has decided to make sustainability another focus point of our branding strategy.
Apart from promoting Dutch products and services abroad, Holland Branding contributes to attracting foreign investors as well.
In short: there are three reasons to invest in the Netherlands. Firstly our strategic location in Europe; the gateway to Europe. Secondly our international business environment and competitive fiscal climate. The third reason is the quality of life in the Netherlands, highly valued by expatriates.
Each time I look at the movie you just watched, I feel proud. I think wow, what a great country I represent! And feel proud on the high level of expertise we have in our country!" That is exactly what I want people to remember. It helps attracting investors to the Netherlands, moreover, it also helps Dutch companies abroad. They benefit if their country of origin has a strong brand.
Ladies and gentlemen, focusing on specific countries and sectors is the third pillar of our approach to international business and cooperation. Complex and dynamic markets require joint forces in private - public partnerships.
We first focus our efforts on fifteen countries. The list consists of countries we do most of our business with, including Germany, France, the UK and the US. However, the list also includes countries with growing economies and emerging markets such as the TRICG.
Secondly we focus on a number of business sectors in which the Netherlands excels. For example high-tech systems and materials, water, food & flowers, life sciences & health, the chemical industry, energy, infrastructure and the creative industry.
We concentrate our efforts on these sectors, both in the Netherlands and abroad. These sectors are our pioneers in international business.
To support our pioneers we have developed a special program called 2g@there.
The main characteristic of this program is that it combines public and private forces.
One example of a result of this program is the Netherlands' partnership with the US authorities in relation ton New Orleans. Following Hurricane Katrina, the Dutch public works and water management agency, jointly with the private sector, provided a team of flood specialists and emergency pumps. This, in combination with Dutch diplomacy resulted in a strong relationship with the Army Corps of Engineers. Businesswise, Dutch engineering firms have since then won contracts for projects that will further strengthen flood protection in and around New Orleans.
Another example is represented by our activities in the Gulf states. These countries are looking for sustainable solutions to their water problems as they are developing at lightning speed. The supply of fresh water and drainage of waste water has become a problem. Besides they lack building space. What should they do? Dutch companies have the solution: small, clean, decentralised purification systems that allow the Gulf to save water and that can be built under existing buildings. The EVD is promoting this in traditional ways: through local representatives, at exhibitions, and in presentations and films. But on top of this the EVD is taking this one innovative step further, by enabling these companies to build a miniature purification system that can be demonstrated at the Qatar Science and Technology Park.
As a final but very important item I would like to conclude that we want to stay ahead in the Corporate Social Responsibility race. Moreover, I would like everybody, every company and every country, to compete in this respect.
Around the globe, companies increasingly realise that it pays off to include CSR principles in their corporate strategy. Not only does it contribute to the benefits of the people and the planet, it is also profitable. CSR contributes to the reputation of a company. It helps to build a loyal customer base. It increases a companies competitive edge. In all, CSR is good for business.
Dutch companies understand this. Many Dutch companies are performing well due to their sustainable, clean and affordable products! This is the reason why fifteen Dutch companies are listed on the Dow Jones Sustainability Index. I am proud of this achievement.
CSR is deeply involved in what the EVD does for it's companies. For example, the EVD only provides financial support to companies who have subscribed to the OECD guidelines on CSR. Furthermore, the EVD actively supports companies by providing "CSR toolkits". These toolkits include information on child labour, and how the public and private sector deal with this. In this manner, the EVD facilitates companies to integrate CSR in their chain of corporate activities.
Personally, I include CSR and sustainability in all my economic missions. I raise it during all my talks with foreign representatives and companies. Furthermore, Dutch companies participating in my missions are held accountable in relation to CSR.
Ladies and gentlemen, let me conclude.
In this fast-changing, globalising world, you need to define who you are and what you represent, so that people can clearly understand what you have to offer. We have made our choices, and they are:
- To capitalise on the synergies between trade, investment and innovation;
- To create a clear and strong identity and country's image;
- To focus our approach and stimulate public private partnerships;
- To stay ahead on CSR.
It was Kofi Annan who said, "To live is to choose. But to choose well, you must know who you are and what you stand for, where you want to go, and why you want to get there." I think this quote firmly embodies all the aspects we have touched upon here today.
I sincerely hope that our approach has inspired you.
Thank you for your attention.