More Dutch firms invest in Vietnams agriculture

Dutch-farmed apples are on display at the Vietnam Foodexpo 2018 in HCMC – PHOTO: MINH TAM

Ho Chi Minh City – Enterprises from the Netherlands are investing heavily in Vietnam's agricultural sector, so their exports are expected to rise in the years ahead, helping promote Vietnam’s produce value and brand recognition abroad, according to a workshop at the ongoing Vietnam Foodexpo 2018 in HCMC.

In recent years, the Netherlands, compared with other European countries, has made the largest investment in Vietnam, at over US$7 billion in registered capital on an annual basis.

Many Dutch firms invest in the agriculture sector and focus on the value of the food chain, just as they do in their home country, according to Dutch Consul-General in HCMC Carel Richter.

Richter told the participants of the event that the Netherlands is currently the world’s second largest exporter of farming products. In the view of its own government, large volumes of products and their varieties are not as important as product quality and accountability in food production. Therefore, they are willing to accept lower quantity in exchange for increased quality.

An increasing number of Dutch businesses have set up shop in the country, and their products are exported to many countries around the world. Their aim is to bring their technologies and experts from the Netherlands to Vietnam, according to the consul general.

He stated that the trend is expected to continue after a free trade agreement between the European Union and Vietnam comes into force.

The Dutch Agricultural Counselor to Thailand and Vietnam, Willem Schoustra, noted that many Dutch companies are faring well in Vietnam. Their products, which are made on Dutch technology, have already been shipped to many countries, supplying high-standard food chains such as McDonald’s.

The aim of these companies is to create made-in-Vietnam products that are strong in the domestic market and able to serve the rest of the world, he continued.

According to the Dutch official, international cooperation through value chains from production to retail is a feasible solution to turn Vietnam into a strong produce exporter whose products can penetrate selective markets such as Japan and South Korea.

Jeroen Pasman, export manager at The Fruit Republic, a Dutch firm in Vietnam, revealed that some 80% of his company’s products were being exported to Europe, while the remainder were being shipped to other markets such as Australia.

Vietnamese fruit and other farming products are mainly exported to China. Of these, up to 75% of dragon fruit is shipped to the neighboring country at low prices. A similar strategy applies to oranges, lemons and grapefruit.

Even though Vietnam has gained the top spot in the volume of exported cashew nuts, its value per kilogram ranks sixth in the world.

It is vital to enhance the quality and value of these products, with a focus on demanding markets where they are sold for high prices. This can create a sustainable means of livelihood for farmers, he suggested.

He also urged local firms to pay more attention to the domestic market. He reasoned that only if residents are no longer skeptical about the standards and quality of domestic products can these products be exported at high prices.