FRIDAY, March 29, 2024
nationthailand

Ambassador notes Netherlands’ strong business role in Thailand

Ambassador notes Netherlands’  strong business role in Thailand

WITH more than 300 companies operating in Thailand, the Netherlands with a population of 17 million often sees itself as a “small country with big business”.

Among the well-known names are Royal Dutch Shell Group in the energy sector, Philips for consumer electronics, Unilever for food and consumer products, Heineken for beverages, and ING Bank, which holds a major stake in TMB Bank.
Ambassador Karel Hartogh said in an interview to mark the Netherlands’ King’s Day that diplomatic relations between Thailand and the Kingdom of the Netherlands dated back to the 17th century when Ayutthaya was still the capital.
In 2004, Queen Beatrix, who abdicated the throne three years ago, visited Thailand to mark the 400th anniversary of Thailand-Netherlands relations.
The ambassador said economic and business cooperation between two countries figured prominently in the bilateral relationship as evidenced by the long-standing presence of many Dutch companies in Thailand.
In other words, the Dutch population may be small, but its economic and business footprint is not, considering the global scale of Dutch multinational firms operating here.
For example, Shell is one of the world’s biggest energy firms, while Unilever is one of the world’s leading food and consumer-goods companies. This has made the Netherlands one of the European Union’s leading investors in Thailand.
In terms of bilateral trade, exports from Thailand to the Netherlands amounted to 2.3 billion euros (Bt92 billion) last year, while Dutch exports to Thailand amounted to 1.07 billion euros. 
The Port of Rotterdam plays an important role as a port of transit for Thai export products.
Dutch companies are also active in Laos, Cambodia and Myanmar, which are overseen by the Dutch Embassy in Bangkok. Many of these firms have adopted corporate social responsibility (CSR) as a significant policy, with Pactics, a specialist in micro-fibre accessories, one of the good examples in Cambodia.
Another example is DiepVu Laos (DVL), a garment manufacturer that specialises in the production of work-wear garments and laundry wear for leasing purposes. 
Both companies have integrated the concept of CSR in their respective business models, which has not only contributed to the success of their businesses, but also benefits the local communities and environment.
Regarding Myanmar, Hartogh said the Netherlands recently upgraded its trade mission in Yangon to a full-fledged embassy after the changing political environment in that country.
Dutch companies have expertise in water management, agriculture, shipping, food security and healthcare among others, so they are preparing to expand businesses in Asean countries.
Hartogh said Laos also had a special economic zone in Savannakhet province while Vietnam had been doing quite well economically, so there was now increased cross-border regional competition for Thailand.
Regarding the foreseen Thai-EU free-trade agreement, he said negotiations were on hold because of Thailand’s political situation.
Thailand is currently one of the Netherlands’ major trading partners in Asean along with Indonesia and Vietnam.
The ambassador said Thailand could improve its business climate further, for instance by increasing its transparency in government and business services, such as with regard to customs affairs, while suggesting that the foreign business ownership law could be improved.
 
nationthailand