40 year NL – VNRotterdam, 25 october 2013

Content

1. About Vietnam

2. About NL VN Relation

3. Intro horticulture sector

4. About VCT

5. Questions and Answers

Vietnam in a glance

• 329,560 km2

• 90 ml inhabitants (60%<40yr, youngest in Asia)

• GDP: $US 136 bill (+5.3% - 9% last 20 yrs)

• Export: $US 114 bill (+20%) Import: $US 110 bill

• GDP/cap: $US 1,500 (PPP: 3500 $US )

• Literacy: 95% (highest in SEA)

• Language: Vietnamese/English

• 30 ml motorbikes

• 32 ml internet users (34% population)

• 155 ml cell phones

• Rapid industrialization (+20%)

• FDI: $US 20 bill, 72 bill (2008)

• FII: $US 35 bill

• Remitance: $US 11 bill

Vietnamese economy in a glance

1975 End of Vietnam War

1986 New economic policy (GDP + 5%)

1997 Asian economic crisis (GDP+7%, second highest)

2000 Bilateral trade agreement (GDP +7%, FDI inflow, export +25%)

2008 Global financial crisis (72 bill USD FDI, GDP +7%)

2010 ASEAN FTA (all custom tariffs: 0%)

2014 FTA EU (expected)

2014 TPP (Trans Pacific Partnership – expected)

2025 17th biggest economy (Goldman Sachs survey)

FDI in Geographical Area’s

Red river Delta23,9%

Northern and mountain

areas1,8%

North central and central

coastal areas19,7%

Central highlands

0,4%

Southeast45,8%

Mekong river Delta

5%

Offshore1,2%

FDI – Foreign Direct Investment

Why Vietnam?

Stable Socio-Political Environment

Safe Business Environment

Stable Economic Growth (5,3-9% last 20yr)

Competitive Labor Cost (150 USD/mt)

WTO MembershipCentre of ASEAN (4 bill consumers within 5 hours flight)

Market of 90 ml people (retail, sales & consumption)

Attractive Tax Incentives

Vietnam is top in:

Rice, Coffee, Peppers,

Seafood, Cashew nuts,

Natural rubber

Emerging in:

Electronics, oil & gas, petrochemical

Netherlands-Vietnam: Milestones

• 400 yr: VOC: Hoi An & Pho Hien

• 40 yr: Diplomatic relation (4 sept 1973)

• 1995: PM Phan Van Khai (jan), PM Wim Kok (sept)

• 2001: PM Phan Van Khai

• 2005: PvO Willem Alexander

• 2011: PvO W. Alexander & Prs Maxima

• 2011: PM Nguyen Tan Dung

VOC: The Trader

Weapons for both North & South

Netherlands-Vietnam: Economic relation

• NL Investments in VN: 5,9 bill USD

• Total trade: 3,2 bill USD

• SPA water & climate

• Rotterdam & Hochiminh City

• Amsterdam & Hanoi

• Sector: Agriculture & Food, Maritime, Water,

Horticulture, Banking & Financial

Vietnam horticulture: interest by politics

Vietnam: Horticulture

Vietnamese horticulture: Diversity

• Central highlands – Da Lat Main vegetable production area Year round temperate vegetable production and highest production standards “Professional” large scale seedling production

• North – Vietnam Main vegetable production season from October till March Large gherkin processing industry Very small scale land units for most crops, but for some also quite large

• Coastal area Nha Trang Seasonal melon production

• South – Vietnam Year round “tropical” vegetable production Seasonal melon production

Breaking the downward spiral in vegetable sector

Vegetable sector: Breaking the downward spiral

• Inconsistent supply: quality & quantity• Low productivity per land unit (scattered landscape of small producers)

and unsustainable production methods• Bad harvesting and transportation• Escaping the downward spiral of:

• Bad consumption experiences• Limited choice• Poor food safety level• Unsustainable production methods

Challenge

Window of opportunity in vegetable sector

• Increasing demand for better quality produce (rise of the middle class)

• No “brands” in the market (limited quality competition)• Huge yield increase potential

• Capturing the window of opportunity:• Consistent good quality• Added value

Challenge

Future of vegetable sector in Dalat

Da Lat has grown into an important supplier of vegetables within Vietnam and some export markets, but the sector has to face a few challenges to further grow:

• How to comply with future demands from the domestic and export markets in terms of product quality and safety?

• How to increase productivity levels per m2 in a sustainable way?

• How to ensure year round supply of products?

• A modern horticulture vegetable production sector could provide an answer

• How to accelerate the development of a modern horticulture vegetable production sector?

Transition Facility PSI

Horticulture: partnership

Vietnam Horticulture: crops

Vietnam: interesting crops

• Central Highlands – Da LatVegetables, tomato, potato, carrot, cabbage, cucumber, coffee

• North – VietnamVegetables, tomato, potato, carrot, cabbage, cucumber,…

• Coastal area Nha TrangMelon, dragon fruits

• South – VietnamMelon, cucumber, pomelo, mango

VCT Connecting Businesses

• Vietnam’s leading specialist since 2000

• 15 employees & 25 freelancers in total

• Office NL & VN

• Focus on SME/ Family owned companies

– Ned Spices, Ned-Deck Marine

– Wassenburg, Dobla

– Royal Kusters Engineering, Royal Johan Enschede

• Special projects for

– Evides, DSM, VDL

– Wartsila, Voith

– Dutch government (EL&I, E&I, NL Agency)

– Trade Organizations (NWP, HME, FME, IRO, etc.)

VCT: trusted since 2000

• Business & Sector Development• Financial Engineering & Subsidy management• Events Management & Partnerships• Marketing & Sales Industrial Equipment

Wassenburg Rensen & van der Plas

Ned-Deck Marine Dobla

What has VCT being done?

Business development: 250 clients

40 investment projects: 1,8 bill Euro

Grant: 40 ml Euro

Sector: energy, maritime, medical, banking,

agriculture & food

Sector Development: Public Private Partnership Energy (AETIN)

Mr. Hoang Trung Hai, Dep PM Mr. Truong Tan Sang, president

Mr. Peter Voser, Shell’s CEO MoU EIW and BSR

The Dutch care: from cradle to grave

Dairy: Dutch LadyMedicines: OrganonCosmetics: Unilever

Water: EvidesTransportation: Damen, Ned-Deck Marine

Chocolate: DoblaMedical devices: Wassenburg, Philips

Entertainment: HeinekenFlowers for ceremony: Dalat Hasfarm

Business Development: VCT

1998: Mr. Hanh Do met The Nehterlands Queen

2005: The Netherlands Prince visited Vietnam

2008: Ministers Koenders & Heemskerk

2011: The Princess Maximale’s delegation

2011: The Princess Maximale’s delegation

Questions & Answers

NL – VN: Commons?

Delta, Water, Big Neigbour

NL – VN: Differences?

Contacts VCT

VCT Netherlands VCT Hanoi

89 Laan van Meerdervoort 26/55 Do Quang2517 AT, The Hague Cau Giay, Ha NoiT: +31.70.3885965 T: +84.4.35535486E: hdo@vietnamconsult.nl E: hai.nguyen@vctvietnam.com

www.vietnamconsult.nl I: www.vctvietnam.com