7/27/2019 Netherland Country Report
1/45
1
The Netherlands
Submitted To: Submitted By:
RAJKISHAN NAIR ATUL TOMAR
DIPANKAR CHANDA
BHUPESH BHARDWAJ
SHRADDHA SETHI
7/27/2019 Netherland Country Report
2/45
2
Official nameKingdom of the Netherlands
Form of governmentconstitutional monarchy, parliamentary democracy
Head of stateQueen Beatrix of Orange-Nassau
CapitalAmsterdam
Seat of governmentThe Hague
Surface area33800 sq.km.
Number of inhabitants16,740,975 (July 2012)
Number of inhabitants495 per sq. km (July 2012)
Monetary unitEuro
LanguageDutch, Frisian
Administrative structureTwelve provinces and the overseas territories
7/27/2019 Netherland Country Report
3/45
3
INTRODUCTION
POPULATION OF NETHERLAND
HISTORY OF THE COUNTRY
The ancient and medieval Netherlands Renaissance Netherlands The Netherlands in 19th century The Netherlands in 20th century
SOCIOLOGICAL ASPECT OF THE COUNTRY
Human development index 2011 Population using information technology
COUNTRY RELATIONSHIP WITH OTHER NATION
U.S. Netherlands relationship Bilateral economic relationship The Netherlands member of international organization
POLITICAL SYSTEM OF COUNTRY
Monarch Parliament House of representative High councils of states
CONTRIBUTION OF DIFFERENT SECTOR IN THE GDP OF THE COUNTRY
Inflation Employment rate Unemployment rate
IMPORT AND EXPORT OF COUNTRY
7/27/2019 Netherland Country Report
4/45
4
MAJOR INDUSTRY OF THE COUNTRY
Agriculture and food sectors Horticulture Chemical industry Life science and health Creative industry Logistics Energy water Hi-tech
GOVERNMENT SUPPORT TO INDUSTRIALIZATION
Government effectiveness National debt as percentage of GDP Corruption percentage index Corporate tax rate on profit
TRADE RELATIONSHIP WITH NEIGHBOR
Most significant trading partner: western Europe Gateway to Europe
CONDTION OF F.D.I.
NUMBER OF ENTREPRENEURS (2009)
MOST INNOVATIVE COUNTRY
R&D EXPENDITURE
INNFRASTRUCTURE
Navigable inland waterways Strong in logistics European an airport traffic and transport 2011 Largest port in Europe
CONCLUSION
7/27/2019 Netherland Country Report
5/45
5
OBJECTIVE
The objective of this country report is analyze the possibility of doing business in the
Netherlands keeping the support of government in the mind and analyses the business
environment.
INTRODUCTION
The Netherlands also known as the Holland/Dutch has for centuries been one of the most open
economies in the world. The Dutch conduct business all around the world. The Dutch economy
was hit hard by the global economics crisis which began in the autumn of 2008. Nevertheless,
the Dutch economy has stayed strong despite these difficult situation and Holland continues to
occupy a prominent position in world trade in 2011 the Netherlands was the fifth largest
exporter of goods in the world according to the World economics forum the Netherlands has the
seventh best business climate in the world the climate in the business also scores highly with
other institutes such as IMD and Economist Intelligence Unit.
Population of Netherlands
In the Netherlands the male breadwinner and the related institutional regulations of formal
marriage lasted till the 1990s. at date men are still the main providers of their families and
although labor market participation of Dutch women increases, the seldom have more than a part
time job when there are children are to be cared for. Nevertheless family law has changed
dramatically in 1998 among other by equalizing children born in and out of wed lock. At the
beginning of the 21st century, Dutch family law is considered to be both trend setting and
7/27/2019 Netherland Country Report
6/45
6
straggling behind at the same time. This proposition seems to be ambiguous. However to put it
succinctly, Dutch family is unique in two ways: on the one hand the Netherlands became the first
country in the world where two partners of the same sex can enter into a marriage. On the other
hand, the Netherlands is still the only country in the world where the universal community of
property is the applicable legal matrimony property regime.
The Total Population of Netherlands has increased from 14,892,574 in 1990 to 16,105,285 in
2002(Statistics Netherlands Star line, 2002). The total population of Netherlands is 16.69 million
in Jan 2012. The Population growth Rate of Netherlands is 0.452% (Source: CIA world fact
book, July 26,2012).
7/27/2019 Netherland Country Report
7/45
7
NETHERLANDS POPULATION
Nationality:o Noun: Dutchmen (men), Dutchwomen(women).
Language:o Dutch (official), Frisian (official).
Millions Of People
Population:o 16,730,632 ( July 2012 )
Age structure:o 0-14 years: 17.2% (male 1,474530/ female 1,408,144)
15-64 years: 66.2% (male 5,569934/ female 5,505,269)
65 years and over: 16.6% (male 1,231,914/ female 1,540,841)
15.926
16.046116.1489
16.225316.2817 16.3199
16.3461 16.381716.4456
16.5316.62
16.69
15.4
15.6
15.8
16
16.2
16.4
16.6
16.8
Jan/01 Jan/02 Jan/03 Jan/04 Jan/05 Jan/06 Jan/07 Jan/08 Jan/09 Jan/10 Jan/11 Jan/12
7/27/2019 Netherland Country Report
8/45
8
Median age:o Total: 41.5 years
Male: 40.7 years, Female: 42.3 years
Population growth rate:o 0.452%
Brith rate:o 10.89 births/1,000 population
Death rate:o 8.39 deaths/1,000 population
Net migration rate:o 2.02 migrant(s)/1,000 population
Urbanization:o Urban population: 83% of total population (2010)
Rate of urbanization: 0.8% annual rate of change
Major citiespopulation:o Amsterdam (capital) 1.044 million; Rotterdam 1.008 million; The Hague (Seat of
government) 629,000 (2009).
Sex ratio:o At birth: 1.05 male(s)/female
Under 15 years: 1.05male(s)/female
15-64 years: 1.01 male(s)/female
7/27/2019 Netherland Country Report
9/45
9
65 years and over: 0.8 male(s)/female
Total population: 0.98male(s)/female
Infant mortality rate:o Total: 3.73 deaths/1,000 live births
Country comparison to the world: 204
Male: 4.03 deaths/1,000 live births
Female: 3.41 deaths/1,000 live births
Literacy:o Definition: age 15 and over can read and write
Total population: 99%
Male: 99%
Female: 99%
School life expectancy (primary to tertiary education)Total: 17 years
Male: 17 years
Female: 17 years (2008).
HISTORY OF THE COUNTRY
THE ANCIENT AND MEDIEVAL NETHERLANDS :Farming was introduced into the Netherlands about 4,500 BC. At first farmers made tools and
weapons of stone. However after 1,900 BC they used bronze. About 750 BC the inhabitants of
7/27/2019 Netherland Country Report
10/45
10
the Netherlands learned to use iron. In the Ist century BC the Romans conquered Belgium and
the southern Netherlands. They built roads and towns. However they did not colonise the
northern part of the Netherlands. Then in the late 4th century the Romans withdrew from the
Netherlands as their Empire crumbled. Afterwards the Netherlands was left to Germanic peoples,
Franks, Saxons and Frisians. However in the 8th century AD the Franks conquered the others
and became masters of the region. Meanwhile the area was converted to Christianity although a
missionary, St Boniface was martyred by the Frisians in 754. In 768 Charlemagne became ruler
of the Franks and he created a great empire in Europe. Under him the Netherlands was divided
into cantons, each ruled by a count. However when Charlemagne died in 814 his empire was
divided into three parts, roughly modern France, Germany and the region between At first the
Netherlands was part of the Middle Empire. However in 925 it was absorbed into the German
Empire.
During the 9th and 10th century the Netherlands suffered from Viking raids. However during the
Middle Ages town life and trade flourished in the Netherlands. In the 14th century Dutch towns
enjoyed considerable freedom. However in the 15th century the Dukes of Burgundy gradually
took control of the region
RENAISSANCE NETHERLANDSEventually the Low Countries including the Netherlands became the possessions of the powerful
Habsburg family. In 1555 Phillip II of Spain became ruler of the region. Meanwhile the
Reformation was sweeping the Netherlands despite rigorous persecution. Calvinism, the
teachings of John Calvin became popular in the Dutch towns. In 1556 Calvinists destroyed
religious art in many churches in a movement called the Iconoclastic Fury. In 1567 King Phillip
7/27/2019 Netherland Country Report
11/45
11
sent his servant the Duke of Alva with an army to suppress the Calvinists and impose his will on
the Netherlands. Alva set up the Council of Blood, which tried and condemned to death 12,000
people for taking part in the riots of 1566.
Then Prince William of Orange, known as William the Silent became the champion of Dutch
freedom. In 1572 William led pirates called the Sea Beggars against the Spanish. From the sea
they sailed up rivers and captured Dutch towns. The Dutch flocked to join the rebellion.
However the Spanish fought back and a terrible war ensued.
In 1579 seven provinces of the Low Countries signed the Union of Utrecht. In 1581 they
declared independence from Spain. In 1588 they formed the Republic of the Seven United
Netherlands. However the Spanish fought to hold onto the region and in 1584 William the Silent
was assassinated. Yet the English sent help and Spain was weakened by the defeat of the Spanish
Armada in 1588. Phillip finally died in 1598.
During the 17th century the Netherlands became a prosperous trading nation helped by a 12 year
truce with Spain from 1609 to 1621. The Dutch East India Company was formed in 1602. The
Dutch West India Company was formed in 1621 and in 1625 the Dutch founded New York (later
New Amsterdam). In 1652 they founded a colony in south Africa.
Meanwhile Dutch sailors went on long voyages. In 1606 Willem Jansz discovered Australia and
in 1642 Abel Tasman discovered Tasmania.
Meanwhile the Spanish finally recognised the independence of the Netherlands in 1648.
However trade rivalry with England led to three wars in 1652-54, 1665-67 and 1672-74.
However William of Orange, Stadholder (ruler) of the Netherlands made peace with England and
7/27/2019 Netherland Country Report
12/45
12
married Princess Mary of England. In 1688 William became king of England.
In the late 17th century science, art and philosophy flourished in the Netherlands. However as an
economic and political power Holland declined in the 18th century. The Dutch were involved in
the War of the Spanish Succession against the French. The long war left the Netherlands
exhausted. Increasingly Britain and France dominated world trade.
THE NETHERLANDS IN THE 19TH CENTURYAt the end of the 18th century Europe was thrown into turmoil by the French Revolution. In
1795 the French invaded The Netherlands and founded the Batavian Republic. In 1806 Napoleon
made his brother Louis king of the Netherlands. However the brothers fell out and Louis was
forced to abdicate in 1810. The Netherlands was then absorbed into the French Empire.
However by 1813 Napoleon was facing defeat and in that year William of Orange returned to the
Netherlands. In 1814 he was made King William I. In 1815 Belgium and The Netherlands were
joined together as one country under King William I. However the two countries were too
different to be united. In 1830 the Belgians rebelled and in 1839 the great powers forced William
I to give Belgium its independence.
William I died in 1840 and in 1848 his son introduced a new liberal constitution. For the rest of
the 19th century the Netherlands was a prosperous and stable country. However everybody did
not share the prosperity. Some industrial growth took place. (In 1839 a railway was opened from
Haarlem to Amsterdam). However conditions in 19th century factories in the Netherlands were
terrible.
7/27/2019 Netherland Country Report
13/45
13
THE NETHERLANDS IN THE 20TH CENTURYDuring the First World War The Netherlands remained neutral but the German Kaiser fled to the
Netherlands in 1918 and was granted asylum there.
During the 1930s like the rest of the world the Netherlands suffered from the Depression and
there was mass unemployment. Yet despite the depression living standards rose during the 1920s
and 1930s.
When the Second World War began Dutch remained neutral but on 10 May the Germans
invaded. On 14 May the Germans bombed Rotterdam. The Netherlands was forced to surrender.
However Queen Wilhemina escaped.
During World War II the Netherlands suffered terribly. Thousands of Dutch men were deported
to work in Germany and 23,000 people who resisted the Germans were shot. The worst suffering
was during the Winter of Hunger in 1944-45 when the Germans looted the Netherlands of food,
reducing the people to near starvation. Furthermore the Nazis murdered a huge number of Jews.
In 1940 about 140,000 Jews lived in The Netherlands but less than 25,000 survived. The
Germans the Netherlands recovered from the war and a new welfare state was created. In 1949
the Dutch colony of Indonesia became independent. It was followed by Suriname in 1975.
Meanwhile the Netherlands was a founder member of the EU in 1957. In 1999 the Netherlands
joined the Euro.
Like the rest of the world the Netherlands suffered in the recession of 2009 but it soon recovered.
Today the Netherlands is a prosperous country. Flower growing is still an important industry.
Today the population of The Netherlands is 16.7 million.
7/27/2019 Netherland Country Report
14/45
14
SOCIOLOGICAL ASPECT OF THE COUNTRY
Human development index 2011According to UNDP the Netherlands ranks third place worldswide with regard to prosperity. In
determining prosperity the UNDP takes into account a countrys GDP as well as other aspects of
human well being, such as life expectancy, public health, literacy levels and educational
standards of 187 countries listed in the UNDP index, the Netherlands ranks third.
Source: UNDP 2011
Population using information technology :The E-readiness rankings, compiled by the EIU, assess economies with regard to their ability to
ability to absorb information and communications technology (ICT) and use it for economies and
0.943
0.929
0.91 0.910.908
0.89
0.9
0.91
0.92
0.93
0.94
0.95
Norway Australia Netherland United states New zealand
scores
scores
7/27/2019 Netherland Country Report
15/45
15
social benefit. The E-readiness ranking of its consumers, business and government to ICT to
their benefit, Research conducted by the world Economic Forum 2010 on networked readiness
also gave the Netherlands an excellent score the Netherlands came ninth in a list of 133 countries
this research aims to measure the degree to which a national environment is conducive to ICT
development and diffusion.
Source: EIU 2010
COUNTRY REALTIONSHIP WITH OTHER NATION
U.S.-NETHERLANDS RELATIONSThe United States and the Netherlands established diplomatic relations in 1782 following the
U.S. declaration of independence from Great Britain. The U.S. partnership with the Netherlands
is one of its oldest continuous relationships and dates back to the American Revolution, which
the Dutch supported. The excellent bilateral relations are based on close historical and cultural
8.49
8.41 8.41
8.36 8.36
8.25
8.3
8.35
8.4
8.45
8.5
Sweden Denmark United states Netherlands Finland
score out of 10
score out of 10
7/27/2019 Netherland Country Report
16/45
16
ties as well as a common dedication to individual freedom and human rights. The United States
and the Netherlands often have similar positions on issues and work together both bilaterally and
multilaterally in such institutions as the United Nations and the North Atlantic Treaty
Organization (NATO).
The Dutch fought alongside the United States in the Korean War and the first Gulf War and have
been active in global peacekeeping efforts in the former Yugoslavia, Afghanistan, and Iraq. The
Netherlands played a leading role in the 1999 Kosovo air campaign. It has contributed to
European Union (EU) peacekeeping forces in Bosnia. The Dutch also have supported and
participated in NATO training efforts in Iraq, the EU and NATO police training efforts in
Afghanistan, the 2011 NATO mission in Libya, and in both EU and NATO counter-piracy
operations. The Dutch are participants in the smart defense initiative, including in the area of
missile defense. The Netherlands supports counterterrorism efforts with leadership, personnel,
and material. It is a party to all 12 UN counterterrorism conventions. The Dutch work closely
with the United States and other countries on international programs against drug trafficking and
organized crime.
Bilateral Economic RelationsThe Netherlands and the United States share a liberal economic outlook and firm commitment to
free trade. The Netherlands is a member of the European Union and has worked within the EU as
well as with the United States at the World Trade Organization and in the Organization for
Economic Cooperation and Development to advance the shared goal of a more open, market-led
global economy. The United States attaches great value to its strong economic and commercial
ties with the Dutch. With no significant trade or investment barriers, the Netherlands is a
7/27/2019 Netherland Country Report
17/45
17
receptive market for U.S. exports and an important investment partner. The two countries are
among each other's largest direct foreign investors. The Netherlands is the third-largest investor
in the U.S. and the 7th-largest trading partner of the US, with more than 700.000 jobs in the U.S.
related to trade and investment with the Netherlands. The Netherlands participates in the Visa
Waiver Program, which allows nationals of participating countries to travel to the United States
for certain business or tourism purposes for stays of 90 days or less without .
The Netherlands's Membership in International OrganizationThe Netherlands and the United States belong to a number of the same international
organizations, including the United Nations, North Atlantic Treaty Organization, Euro-Atlantic
Partnership Council, Organization for Security and Cooperation in Europe, Organization for
Economic Cooperation and Development, International Monetary Fund, World Bank, and World
Trade Organization. The Netherlands also is an observer to the Organization of American States.
Political system of country
The country has political system contains lots of agencies to keep political system effective
transparent and responsible towards the citizen of Netherlands.
Netherland has constitutional monarchy since 1815 & it transparent into parliamentary
democracy in 1848. Before 1815, from 16th century it was republic up to the beginning of 19 th
century. It was also a part of France empire from 1810-13 under the rule of Napoleon Bonaparte.
Since 1848 Netherland is constitutional democracy have monarchy as the head of the country
And parliament as the functional body of the country, consist different political parties whose
7/27/2019 Netherland Country Report
18/45
18
representative selected by the direct election system based on the principle of first past & the
post system.
Monarch
Monarch is the head of the country . All the bill become laws by signature of monarch, all the
agreement done under his name but monarch use there power with the help of Prime Minister &
cabinet who are the representative of citizen .It is a ceremonial post given to the royal family of
Dutch. Beatrin Wilhelmine Arngard is the 9th monarch of kingdom of the Netherland.
Prime MinisterPrime Minister is the head of cabinet ,who directly get elected by the citizen of country. He rules
the country with the help of cabinet minister and make all the policy of the country. Mark Rutte
of peoples party for freedom and democracy is the 51st Prime Minister of the country.
ParliamentThe Parliament of Netherland is divided into two part :-
-House of Representative ( Lower House)
-Senate ( Upper House)
House of Representative (Tweede kamer)The member of House of representatives is the directly elected by the citizen of nation in the
parliament. It consists of 15 members. Its main task is to control government and legislation.
7/27/2019 Netherland Country Report
19/45
19
The house gives the opportunity to the government ministers to reply all the questions asked by
the house member. A cabinet or the minister cannot remain without the confidence of the house.
Senate (Eerste kamer)
The senate is a part of parliament but its member does not selected directly by the members of
provincial first chose the 75 members .the provincial states again be directly elected. The senate
is a co-legislator after the house adopted a bill. The Senate must still approve the bill, unlike the
house , the senate lack the right of initiative.
High councils of StatesThe national ombudsman is independent high council of the state where citizen can complain
about the improper conduct of official of government . It may also deal with complaints about
municipalities, unless municipality has its own ombudsman. The National ombudsmen officer
was appointed by the house . Nobody can rise any question abut that. It may also itself initiate an
investigating and against any organ of government body. It was established on 1st Jan. 1982 A
high council of state is the independent body guaranteed in the constitution of Netherlands .
There are 5 council of state Senate, House, Audit, Ombudsman, council.
The court of Audits taskThe court of audit investigates whether central government revenue and expenditure are received
and spend correctly and central government polices implemented . They carry on their task under
low . The express opinion on the government adopted policy. The Netherland court of audit is a
central government body whose task is to ensure that the democratic system work properly.
7/27/2019 Netherland Country Report
20/45
7/27/2019 Netherland Country Report
21/45
21
large country comes 133rd and 61st respectively on the world list but the countrys economic
performance is much higher .The GDP of the country was more than 607 billion Euros in 2011.
The Netherlands is 16th largest economy in the world but the 6th largest in the European union
The country is one of the wealthiest nation of European union it is second most wealthiest nation
after Luxemburg . The high average income in the Netherlands is the result of high productivity
and high level of labor participation. In 2011 GDP of the country is $840.4 billion .which shown
the increase rate of 1.69% since 2010. GDP purchasing power parity was $694.57 billion and the
per capita income in the Netherland is $50,355.50
The financial condition of the country is very strong $4087.7 bn dollar which supports the
economy of the country. The world financial development report 2012 gave 9th rank to the
Netherlands. According to the financial development report the country ranks 4th in the banking
financial services, 13th in non-banking financial services (IPO activity, insurance etc).
Source: WEF financial development report 2012
490.9
1909.51028.1
661.2
US$ bn
public debt securities
private debt securities
bnaking deposits
equity securities
7/27/2019 Netherland Country Report
22/45
22
Source: Eurostat 2012
Inflation rateThe Netherland has a good reputation in monetary terms. The policies used by the DNB (the
Dutch central bank) on monetary policies help due to moderate price increase. As per the survey
of IMD 2012 Netherlands is second in world in the fight against high price.
Source: Eurostat 2012
GDP/
GDP(PPP)
20082009
20102011
877.474796.651 783.293
840.4679.593 658.971 676.89 694.57
GDP/
GDP(PPP)
1.1
1.71.8 1.8
2.1
0
0.5
1
1.5
2
2.5
Ireland Netherlands Germany France Austria
inflation rate in percentage (2006-2011)
inflation rate (2006-2011)
7/27/2019 Netherland Country Report
23/45
23
Employment rateAs the country is programming continuously & have a high growth rate due to which the
employment in the Netherlands has increased more than 15%. The reason for high employment
rate is economic reform implemented by government , lack of strike in Netherlands labor market
favorable condition to do business.
Sources: OECD 2012
Unemployment rate:The rate of unemployment rate in the Netherlands is one of the lowest in Europe from 2006-2011
an average of 3.9% of potential working population is unemployed, while the average of euro
countries was 8.7%. due to the economic crisis the unemployment rate is Netherlands increased
to 5.1% but it is still below to the compare of other country.
79
74.974.1
73.272.5
68
70
72
74
76
78
80
Switzerland Netherlands Sweden Denmark Germany
Employement rate (2011)
Employement rate (2011)
7/27/2019 Netherland Country Report
24/45
24
Source: OECD 2012
Import and export of country:
The Netherland plays a significant role in the world economy due to its export and imports
attracting foreign investors and invest abroad. Its geographic location in relation to the European
hinterland and its world class infrastructure such as the port Rotterdam, Schipol airport helped
Netherland become an important distribution centre
Netherlands export:The Dutch have traditionally been a powerful force in international trade. In recent years, the
Netherlands has increased its trade in industrial products and decreased trade in food products
and foodstuffs. Principal Dutch exports today are manufactured goods, machines, chemicals,
petroleum products, natural gas, and foods. Chief imports are manufactured products, machines,
crude petroleum, and chemicals. From 1981 through 2000, the Netherlands experienced trade
surpluses each year. .
3.9 3.94.4
4.95.3
0
1
2
3
4
5
6
Netherlands switzerland Austria Luxembourg Denmark
Average unemployement rate in percentage (2006-2012)
Average unemployement rate
in percentage (2006-2012)
7/27/2019 Netherland Country Report
25/45
25
Netherland occupies a prominent position in world trade of being 5th large
exporter of goods in world. In 2011 the Netherland exported good was over $638 billion which is
3.8% of total world exports. The Netherland is also a prominent exports of commercial services
amounted to $131 billion in 2011 which placed the country 9th in world.
Netherlands export volumes amounted to $397.6 billion in 2009, dropping from $531.7 billion
in 2008. The Netherlands ranked seventh in the world in terms of the export volumes. Being a
land with abundant fertile land and excess food production, the Netherlands exports food items
to most of its trading partners. The Netherlands main export partners are:
Germany Belgium France The UK Italy
The following graph shows the different countries contributed to the export volume
Sources: statistics of Netherlands 2012
25.4
13.7
8.9 8.85.2
0
5
10
15
20
25
30
Germany Belgium France UK Italy
Netherlands: Exports partners in %
7/27/2019 Netherland Country Report
26/45
26
Sources: statistics of Netherlands 2012
Netherlands import:Imports in Netherlands decreased to 33826 EUR Million in November of 2012 from 34659.10
EUR Million in October of 2012. Imports in Netherlands is reported by the Dutch Statistics
Office. Historically, from 1960 until 2012, Netherlands Imports averaged 9906.02 EUR Million
reaching an all time high of 34659.10 EUR Million in October of 2012 and a record low of
584.90 EUR Million in August of 1960. The Netherlands main imports are: fuel (29 percent of
total imports), machinery (26 percent), food and live animals (8.6 percent), pharmaceuticals and
electronics.
Netherlands imports data comparison from Jan 06 to dec. 12
48.1
7.1
21.1
4
70.6
111.9
36.8
37.2 2.9
exports product in billions euros
Animals feed and live animals
48.1
Beverages and tobacco 7.1
Raw materials inedible (not
fuels) 21.1
Minerals and vegetables oils
and fats 4
chemicals products 70.6
Machinery and transportation
equipment 111.9
7/27/2019 Netherland Country Report
27/45
27
According to the 2009 statistics, the Netherlands imported a total volume of $358.9 billion
dropping substantially from $474.8 billion in 2008. The Netherlands ranked eighth in the world
in terms of import volumes
With huge natural resources, the Netherlands requires machine to process them and therefore
machinery dominates its import
The Netherlands main import partners are:
Germany China Belgium The US The UK Russia France
7/27/2019 Netherland Country Report
28/45
28
The following graph shows how the different countries contributed in the import volumes:
Sources: statistics of Netherlands 2012
Sources: statistics of Netherlands 2012
16.6
10.1
8.77.5
5.8 5.44.4
0
2
4
6
8
10
12
14
16
18
Germany China Belgium The US The UK Russia France
Netherlands: import partners
32.2
3.615.8
78.8
47
103.2
38.5
imports of good in billion euros
Animals feed and live animals
32.2
Beverages and tobacco 3.6
Raw materials inedible (not
fuels) 15.8
Minerals fuel,lubricants 78.8
chemicals products 47
Machinery and transportation
equipment 103.2
7/27/2019 Netherland Country Report
29/45
29
Major industry of the company
The Dutch is focusing on industrial sectors that are important international trade and
investments. together these sectors are the drivers of the Dutch economy.
Agriculture and food sectors Horticulture Chemical industry Life science and health
Creative industry
Logistics Energy water Hi-tech Agriculture sector:
Holland is second largest exporter of agriculture products after the united states America. The
total volume of Dutch exports 72.8 billion euros in 2011. The Dutch agri-food industry
contributes 48 billion Euros of added value to Dutch GDP. It is the top producer of onion and 2 nd
most exported produce is tomatoes. As the agri -food sector is prominent to Netherlands so it
invest a huge amount in R&D in this industry. Which make him 2nd highest private R&D
investor. Due to the leading in agri sector, out of 40 worlds top food and beverage companies, 4
are Dutch, 12 companies have major production site or R&D facilities in Netherlands. Holland is
global market leaders in machinery for poultry and red meat processing.
Horticulture:
7/27/2019 Netherland Country Report
30/45
30
The Dutch horticulture sector is a global trend setter and the undisputed international market
leader in flower plant bulbs and propagation material. A quarter of the worlds trade horticulture
product(24%) is in Dutch hand. Holland has a 50% share of the world wide trade in floricultural
products making it the dominant global suppliers of flowers and flowers products. Sum 80% of
all flowers bulbs traded world wide is of Dutch origin, the majority of which are tulips. In this
sector the country is 3rd largest producer of nutritional horticultural products of the
approximately 1,800 new plant varieties that enter the European market each year 65%
originated in the Netherlands. The Dutch are the worlds largest exports of seeds amounted to 1.5
billion euros.
Chemical sector:The chemical industry is one of the leading business sector of Netherlands and make it an
important contributor in economy. In 2010 it contributed 47 billion euros. The competitiveness
of the Dutch chemical industry lies in its internal and inter company integration. Chemical
companies work together on innovation and production. It has 19 out of 25 worlds leading
chemical industry like AkzoaNobel, SHELL, DSM, PURAC. Within the strong chemical
community the Dutch have formulized and structured the approach the co-operation. This is
done through public private partnerships. In the area of advanced materials (polymer composites
etc.) the Netherlands consistently punches above its weight producing world renowned
innovation in material such as Twaron, Dyneemo.
Life science and health sector:The Netherlands ranked 8th world wide in life science and health patents with approximately 400
innovative life science company clustered with in a 120 mile radius. 5 of the top 10 biotech deals
7/27/2019 Netherland Country Report
31/45
31
within the EU in the last 4 years involved Dutch companies. In 2011, Brainport Eindhovens in
brainport region was named the world most intelligence ICT & health cluster. The Netherlands
is a global market leader in mobile health care which enables the Dutch to contribute to rural
health care in developing nations around the globe. The industry annually exports around 37
billion euros in total of which 25 billion euros is pharmaceutical products and rest medical
technology and medical lab instruments.
Creative industries: (agriculture, fashion , design,gaming ):Holland creative industry ranked among the worlds top 10 in terms of trade figures, jobs,
registration of brands and patents. This industry adds 7.1 billion euros in the Dutch economy.
Holland has a tradition of interior design, epitomized by Rietvelds furniture designs. Marcel
Wanders is currently one of the worlds best known furniture designers. The Netherlands is
worlds leading developers of computer games. Including game such as Vsteps ship simulators.
Logistics sector:The Netherlands is ranked 4th in 2010 world bank global logistics performance index. From the
port of Rotterdam, all major industrial and economic centers in westerns Europe can be reached
in less than 24 hours. The Netherlands won three awards at the 2010 Arias fredight and supply
chain awards for best sea port in Europe. Dutch transport companies account for about 13% of
all cross border road transportation of goods within the EU. The Netherlands has the 2nd largest
cooling and freezing storage capacity in Europe.
7/27/2019 Netherland Country Report
32/45
32
Energy sector:The Netherlands is a major natural gas producer. And the source of advanced gas technology.
Besides it is also Europes leading gas broker and strategic gas hub 15-20% of gas consumed in
Europe comes from Holland that is why it has densest and very high standard distribution
network for gas in Europe . Holland also have a good position in research in renewable energy
due in part to the work of the energy research centre ECN . The Netherland ranks 6th worldwide
with regard to patent application involving solar PV. The Dutch have leading expertise in
offshore wind energy combustion of biomass in coal fired power plant pre-treatment methods of
biomass the use of landfill gas an the use of heat pumps combined with heat and cold storage.
Every year 6.3 million tons of municipal waste is converted in 12 efficient and clean waste
incinerators to power, heat and reusable resources from the ashes. The Netherlands is
establishing itself as leader in green gas, Green gas technology, the gasification of biomass has
been patented by Dutch energy company ECN. In 2010 the annual production of green gas from
biogas was 37 million NM3
Water:The Dutch are renowned for their integrated water management and multi disciplinary approach
that balances social, economic, environmental and energy needs. The Dutch DELTA works are
listed in Guinness book of records for the largest tidal barrier in the world. In the field of water
purification, the Netherlands ranks 5th world wide for global patents. The Dutch began using
innovative waste water treatments techniques in the 1970. Some 99.9% of Dutch households
have access to clean, entirely chlorine free drinking water.
7/27/2019 Netherland Country Report
33/45
33
High-tech sectors:Hollands high tech sector is a world leader in the development of new technologies and materials
for use in communication systems, aircraft, automobiles, medical devices, energy generation, and
semi conductor production. Dutch companies invented Wi-Fi, the CD and the DVD. Bluetooth
technology invented by Dutchmen Joap Haorsten. High tech equipments from Dutch companies
are used in 90 % of all silicon chips produced world side. The Netherlands ranks among world
top 3 nano science countries, together with Switzerland and The USA. Dutch multinational
ASML is the worlds leading provider of lithography machines for semi conductor industry. In
2009, the export volume form high-tech system machines was 32 billion euros, the production
value 73 billion euros, and value added 23 billion euros.
Government support to industrialization:
The complex building known as the Binnenhof in the Hague is the seat of the Dutch
government. The Netherlands is one of the most stable nations in the world with a competitive
fiscal climate. If we leave the recent extra stimulus expenditure government finances are
relatively healthy.
Government effectiveness :As per the world bank, the government of the Netherlands is one of the most effective in the
world which make it easier for companies to make medium and long term decisions regarding
investment in the country. The figures for government effectiveness capture the perception of the
7/27/2019 Netherland Country Report
34/45
34
quality of public services, the quality of policy formulation and implementation and the
credibility of the government commitment to their policies.
Source: world bank 2010
National Debt as percentage of GDP:The Netherland was able to dramatically reduce its level of government debt in the years
preceding the global economics crisis due to favorable economy and reasonably stringent fiscal
policy .In 2008 there was even a budget surplus for the third consecutive year . Dutch
government debt as a percentage of GDP was higher than the EMU standard of 60% in 2011 but
it was still well below the average for the Euro zone.
Rank
0
1
2
3
4
5
DenmarkFinland
SwedenNetherland
Canada
12
3
4
5
Rank
Rank
7/27/2019 Netherland Country Report
35/45
35
Source: Eurostat 2012
corruption perception index :According to the transparency international corruption index levels of corruption and nepotism
in the Netherland are among the lowest anywhere in the world among the aspects of corruption
that were the degree to which people in authority such as customs, police officers, judges and
other officials misuse their position for personal gain. The corruption perception index gave 84
score out of 100 which make 9th rank of the country in corruption perception index 2012
Corporate tax rate on profit:The corporate income tax rate is 20% on the first 200000 euros and 25% for taxable profits
exceeding 200000 euros which is below the EU national average. Companies can benefits from
an effective tax rate of only 5% for R&D income from self developed, unpatented, intangible
assets. Other features of the Dutch tax system include a wide tax treaty network the participation
0
20
40
60
80
18.2
38.246.5
65.272.2
scores
scores
7/27/2019 Netherland Country Report
36/45
36
exemption which states that all benefits related to a qualifying shareholding are exempt from
Dutch corporate income tax, and finally a 30% tax break for highly qualified foreign employees.
Source: IMD 2012
TRADE RELATIONSHIP WITH NEIGHBOR
Most significant trading partner: Western Europe
The role of the Netherlands as a key distribution location is also indicated by the volume of
import and export of import and export activities almost 82% of Dutch exports remain Europe
especially western Europe Germany is easily the Netherlands most significant trading partner
followed by Belgium, the United Kingdoms and France.
12.5
21.17
25 24.8 24.8
0
5
10
15
20
25
30
Ireland Switzerland Austria Denmark Netherlands
corporate tax rate on profit 2012 (%)
Series 1
7/27/2019 Netherland Country Report
37/45
37
Sources: Statistics Netherlands 2012
Gateway to Europe :The Netherlands has become a key hub for distribution in Europe because of its favorable
location in relation to the European hinterland and the countrys world class air and sea ports
such as port of Rotterdam and Amsterdam airport schiphol the Netherlands is home to more
distribution centers than anywhere else in Europe and has the largest inland shipping fleet in
Europe.
Source: Statistics Netherlands 2012
326.8
12.3
18.58.5
2.6 34.3 2.1
values in billions of euros
All of Europes
All of Africa
All of North America
All of central and south america
Near and Middle East Asia
Oceanic
Asia
228.512.4
25.9
15.9
13.1
66.41.4
Values in billions of euros
All of Europe
All of Africa
All of North America
All of central and South America
Near and Middle East
Asia
oceanic
7/27/2019 Netherland Country Report
38/45
38
Condition of F.D.I in the country :
The Netherland is the 9th largest investor in the world as it has some world wide company Dutch
businesses are truly international in their orientation Dutch based multinationals such as
AkzoNobel, Heineken, KPN, ING, Philips, Unilever and shell have made substantial foreign
investments in the past the total value of Dutch investments in other countries is considerable in
late 2010 investments oversea totaled in excess of $943 billion making the Netherland the ninth
largest foreign investor in the world.
It is remarkable that a small country such as the
Netherland attracts so much foreign investment according to the Netherland foreign companies
including the likes of BASF, Cisco System, Microsoft ,Nike , Sabic ,Siemens and Yakult foreign
companies have made direct investments worth $589 billions as a result the Netherland is the
worlds ninth largest recipient of foreign investment with foreign investors providing 15% of the
total number of jobs in the Netherlands
Number of entrepreneurs (2009)
The Dutch have always been well been known for their entrepreneurial spirit which is reflected
in the countrys large number of entrepreneurs 11.9% of the Dutch working population is self
employed. The Dutch government promotes start ups because they create economis vitality and
innovation and because they challenge exisiting firms, giving them the incentives to adapt and
continue to innovate.
7/27/2019 Netherland Country Report
39/45
39
Source: Statistics of Netherlands 2012
Most innovative country
The Netherlands scores well on the Global Innovation Index (GII) 2012 of INSEAD and World
Intellectual Property Organization according to the GII ranks 125 countries on parameters such
as Knowledge diffusion (7th). According to the 2011 Innovation Union Scoreboard (IUS)
distinguishes between 3 main types of indictors and 8 innovation dimensions, capturing in total
25 different indicators.
R&D expenditure
R&D expenditure in the Netherlands at 1.85% of GDP is modest from an international
perspective. However this can partly be explained by the Dutch sector structure. The service
sector which naturally has a low R&D intensity makes up a relatively large share of the Dutch
economy public-partnership in research are a major factor and the Netherland ranked 6th
worldwide in this area.
14.4
12.3 11.9 11.5
0
2
4
6
8
10
12
14
16
Australia Canada Netherlands Belgium
Measured as % of the working population
Measured as % of the working
population
7/27/2019 Netherland Country Report
40/45
40
INFRASTURUCTURE
The Netherlands has a number of key logistics hubs such as the Port of Rotterdam and Schiphol
Airport, as well as high penetration of broadband Internet this provides the country with a sound
physical infrastructure and consequently enables it to be a top performer in terms of logistics
Navigable inland waterways
The Netherlands has a good physical infrastructure with the world class main ports and the
navigable inland waterway has excellent connections to the waterways in the rest of Europe.
After Denmark the Netherlands has the best water transport infrastructure in the world it also has
an extensive road transport network and is third in the world with regard to network density.
According to IMD 2012 the Dutch energy infrastructure also scores well taking fifth place
overall.
Sources: IMD 2012
9.26
9.2
9.18
9.15
9.08
9.1
9.12
9.14
9.16
9.18
9.2
9.22
9.24
9.26
9.28
Denmark Nethrelands Finland Iceland
scores
scores
7/27/2019 Netherland Country Report
41/45
41
Strong in logistics
The Netherlands strong position in terms of logistics is due to the favorable geographic location
of the country at the heart of Europe a sound infrastructure that includes the Port of Rotterdam,
the Port of Amsterdam, Amsterdam Airport Schiphol and a sophisticated logistics sector. This is
reflected in the World Bank Logistics Performances Index 2010, where the Netherlands is ranked
fourth the Netherlands came out on top in terms of the efficiency and effectiveness of its
Customs and other border procedure, the quality of its transport and IT infrastructure for logistics
the ease of use and affordability of its shipping and the level lf professionalism in the Dutch
industry.
Source: world bank 2010
European airport traffic and transport 2011
Amsterdam Airport Schiphol is the third largest freight and fourth largest passenger airport in
Europe. More than 49.7 million passengers passed through the airport in 2011. Cargo volume
4.194.18
4.1
4.08
4.02
4.04
4.06
4.08
4.1
4.12
4.14
4.16
4.18
4.2
Germany Singapore sweden Netherlands
scores
scores
7/27/2019 Netherland Country Report
42/45
42
increased to more than 1.5 million tons. A total of 103 airlines offer direct flights from Schiphol
to 313 destinations all over the globe. Schiphol is also renowned for its outstanding baggage
handling system. Furthermore the airport has won more than 176 national and international
awards since 1980 Schiphol is home to a museum which is the first of its kind in the world and
features exhibits that include paintings by Old Dutch masters such as Vincent van Gogh and
Rembrandt. It is also the first airport in the world with a library and airport park.
Source: Schiphol Group 2012
Largest Port in Europe
The Port of Rotterdam is the largest port in Europe. The trans-shipment in Rotterdam added upto
434.6 million tons in 2011 a new record. Also the number of containers handled reached a record
level in 2011 of 11.9 million TEU.
Business often choose to locate in and around the Port of Rotterdam because of its strategic
location in north-west Europe, its depth the many port facilities and its excellent links with the
hinterland many companies from America and Asia use Rotterdam as their base for the
2133 2088 1524 1484
56,29360,908
49,681
69,391
0
10000
20000
30000
40000
50000
60000
70000
80000
cargo transport x1,000 tonnes
passenger transport x1,000
passengers
7/27/2019 Netherland Country Report
43/45
43
distribution of goods throughout Europe work on the this 2 project is currently on going this
historic land reclamation project will expand the area of the Port of Rotterdam. The first phase
will be completed in 2013 which is when the first containers will across the quay the combined
activities of the port account for about 5% of the GDP more than 90000 people work directly for
the port of Rotterdam.
Source: Port of Rotterdam 2012
Conclusion
If we see the different graph then we will find that country has done tremendous progress in
almost all sectors since last many decades. There was a little bit shake in the progress in of the
economy of the country but right steps taken by the policy maker of the country at right moment
due to which country did not suffered as much loss as it should afford because the economy of
the country is heavily depend of the exports of the product. The country has not fought any
434.6
187.2
132.2
11.9 8.7 9
0
50
100
150
200
250
300
350
400
450
500
Netherlands Belgium Germany
Trans-shipment(in millions oftonnes)
Containers (in millions of TEU)
7/27/2019 Netherland Country Report
44/45
44
serious war since World War II so it is very peaceful country to do the business it has very
friendly relation with its neighbor and some its biggest trade partner is also its neighbor like
Germany due to the peaceful environment government is giving ample attention to the
development of the social and economic factor of the country due to which it is consider as the 5
best destination to live and doing business the corruption transparency index shows that the
functioning of the government is free from the corruption so it has well educated population has
4th largest user of the information technology due to high level of education it has good
proportion of export and import in the GDP of the country the 9 sector given above in the report
are its most fruit full sector it is the 9
th
largest foreign investor in the world and in the year 2011 it
attracted $529 US billion foreign direct investment in the country so the country is highly
suitable for doing the business as the availability of opportunity is higher in comparison to any
other nation and the support of the government is also more so the place is safe to grow
investor's money
7/27/2019 Netherland Country Report
45/45
BIBLIOGRAPHY World financial development report 2012 Global competitiveness report 2012 World governance indicators (world bank) Corruption perception index 2011 Ministry of trade and commerce the Netherlands Ministry of social welfare Statistics report of the Netherlands 2012 Ministry of tour and travels Finance ministry of the Netherlands UNDP