The Japan Times WORLD EYE REPORTS THE NETHERLANDS CENTER OF EUNIVERSE
©THE JAPAN TIMES	Tuesday, November 9, 1999	B1

“As of today, about 350 Japanese companies are active in the Netherlands,” said Tadashi Ikeda, Japanese ambassador to the Netherlands. “We regard this country as the gateway to Europe and have a high regard for the Dutch business environment. “The Netherlands has an excellent has an excellent transportation infrastructure, symbolizes by the port of Rotterdam and Schiphol Airport. Dutch people have excellent language skills, and the geographic location is very advantageous. Last but not least is the positive and vigorous policy toward foreign investment on the part of the central, provincial and municipal authorities. This is a major contributing factor in building such a business climate.”

Tadashi Ikeda, Japanese ambassador to the Netherlands

The Dutch economy has been growing at a somewhat moderate pace this year compared to 1998. A substantial part of this was due to the overall downturn in global trade during the first half of 1999. But in spite of the slowdown, the Netherlands ranked fifth in the EU last year and is expected to close this year with overall economic growth of 2.25 percent compared to 2 percent for Europe as a whole.

The launch of the euro at the start of this year, which eliminated exchange rate risk and is increasing price transparency, is also being seen as an engine for continued prosperity in Holland.

Toon Woltman, chairman, Amsterdam Chamber of Commerce

“The benefits will be especially large for small, open economies like the Netherlands,” said Gerrit Ybema, Holland’s minister of foreign trade. “Our exports account for 53 percent of our gross domestic product, and 80 percent of Dutch exports go to other countries in the European Union.” Trade between the Netherlands and Japan has generally been stable over the past few years, although in 1998, Asia’s overall imports from Holland decreased slightly as a result of the economic situation. Nevertheless, Japan’s imports from the Netherlands topped $1.8 billion in 1998, marking a 4.9 percent increase over 1997. Major imports included agricultural products, medical equipment, photographic film and automobiles.

With the Japanese economy showing signs of improvement, and the strong efforts of the Dutch government to encourage business and trade with Japan, both the major and export figures and the amount of investment between the two countries are expected to increase further.

“The Netherlands Foreign Investment Agency has an office in the Dutch Embassy in Tokyo, and it works very hard to find Japanese companies interested in investing in the Netherlands,” said Tadamichi Shiramatsu, executive director of the Japanese External Trade Relations Organization and secretary general of the Japanese Chamber of Commerce. He added, “When they find a good prospect, they bring people from that company here and show them all the different areas of the country. With this kind of treatment, Japanese companies tend to decide that this will be their location in Europe.”

Provincial pride

With the trade routes of the North Sea on one side and Germany less than three hours away on the other, the province of North Holland is well positioned for its role as the country’s most dynamic region. One-fifth of the gross national product originates within its borders, and almost a third of all commercial activity occurs there.

Driving along any of the 10,000 km of roads running throughout the province offers glimpses of the many multinationals that have set up shop in North Holland. Among them are IBM, Hewlett-Packard, NCR, Sony, General Electric, Unisys, Daewoo, Merck Sharp and Dohme.

“Europe is doing very well; the Netherlands is doing very well within Europe; and the province of North Holland is booming. The economy is growing. There is a very low rate of unemployment and very high skill levels among the workers. And lots of foreign companies are coming here from all over the world,” said Dr. J.A. van Kemenade, governor of North Holland. “The attraction is mainly due to having Schiphol Airport here, as well as the port of Rotterdam and Amsterdam as the financial center. About 50 percent of the Japanese companies in the Netherlands are here in North Holland.”

Both the port of Rotterdam and Schiphol Airport are undergoing expansion projects to ensure they keep their current status as the largest seaport in the world and the fastest-growing airport in Europe. Currently, the port moves over 300 million tons of goods annually, while the airport accommodates more than 34 million passengers. These logistics jewels will remain major draws for international companies to the Netherlands well into the next century.

“We can only make progress when we have an international climate here and many international companies from all over the world - especially from Asia because that region has rapidly growing countries. They slowed down for a while, but they’ll be going again,” said Kemenade.

“You have to look at the activities we have going on here. These firms have their logistics and their big European headquarters, which is important for our position in the European market. And it’s all growing. We’re going to see more and more international companies establishing offices here so they can be part of the international network of economic activities.”

Capital ideas

As the capital city and financial center of the century, Amsterdam epitomizes the success and the future of the Netherlands as a whole. It is the fastest-growing city in the country, boasting 4.6 percent growth compared to the rest of Holland’s 2.25 percent, and it prides itself on being convenient, accessible, flexible, international and comfortable, with a high quality of life. It also has the infrastructure to back up all its boasts.

The centerpiece of that infrastructure is the city’s Tri-Port concept. Schiphol Airport, which is part of the greater Amsterdam area, is complemented by the port of Amsterdam, as well as a complete fiber-optic ring around the city making this “tele-port” one of the most advanced in Europe. The tele-port has made the city an attractive choice not only for some of the world’s leading information technology companies, but also as the location for more than 200 international call centers.

There are currently a number of projects aimed at keeping Amsterdam on the cutting edge as a business and tourist destination. One is a new passenger ship terminal currently under construction, and another is the creation of the world’s first U-shaped unloading terminal for cargo, scheduled to be operational by 2002. The new terminal will allow two ships to be unloaded simultaneously. It will significantly increase the number of containers the port handles each year.

Tadamichi Shiramatsu, executive director, JETRO Amsterdam

“And of course, those port facilities were built based on the intrinsic values of Amsterdam: the hospitality and open-mindedness, the beauty of the surroundings and the people themselves,” said Toon Woltman, chairman of the Amsterdam Chamber of Commerce. “People are very open and international here. We have to be because the country is so small. When you have to compete with so many bigger countries, you have to have an outgoing, open mentality. You have to be a window to the world.”

Amsterdam epitomizes the success and potential of the Netherlands as a whole. It is the fastest-growing city in the country

While the Netherlands certainly provides the world with much more than wooden shoes, tulips, windmills and wheels of cheese, the Holland Board of Tourism is happy to play up those traditional images as a means of attracting visitors.

“We don’t hesitate to start with the old images like windmills and Hans Brinker. If we can attract visitors here by using the traditional ideas of what Holland is, then we can easily show them what the modern image of Holland is all about,” said Theo Schmitz, the tourism board’s managing director. “Of course we want to present the Holland of the 21st century but that will all start with the images of windmills, wooden shoes and cheese.”

The number of tourist visiting Holland is up this year compared with last year, and larger numbers of tourists are streaming in, particularly from Britain, Germany, the United States and Japan.

“One of the most important benefits of the Netherlands is our standards for health and safety. This is especially important for elderly people, and a lot of the American and Japanese tourists fall into this category. Holland is a clean country. It is a safe country. You can easily get around here,” Schmitz emphasized. “When you’re youngsters and you’re backpacking, you don’t care as much. You can go camping and sleep on the beach and bathe in the sea. We have all of that available too, but for the older generation, our country is also very attractive.”

One concern Schmitz does have is that visitors may mistake Amsterdam for the entire country. While he encourages guests to sample all the offerings of Holland’s flagship city, he also strongly suggests taking a little time to get the bigger picture.

“A two-day to three-day tourist experience in the Netherlands should not only be Amsterdam. It should not only be the canal tours,” Schmitz said. “That should be in the program, but visitors should experience something more of the country. We are a combination of big cities and small villages put together with rivers and waterways. That needs to be experienced.”

A leading business location worldwide
World Eye Reports asked Gerrit Ybema, the Netherlands’ minister of foreign trade, about what makes his country such a sound place for business and investment.

WER: How would you assess the Dutch economy this year compared to last year?

Ybema: Along with most other OECD countries, the Dutch economy will grow at a somewhat more moderate pace this year. This is for a substantial part due to the downturn of world trade. In addition, it seems that the Netherlands reached the peak of its economic cycle in the first half of 1998, since growth in the first half was 4.75 percent, measured on a yearly basis, and now we are undergoing a soft landing. Nevertheless, economic growth in the Netherlands this year is 0.25 percent higher than our main competitors in Europe.

Gerrit Ybema, minister for foreign trade

Since the second half of 1998, private consumption has been the engine of economic growth in the Netherlands. It is expected that trade will take over this role at the end of 1999 as world trade recovers. The prosperous economic growth is favorable for employment. The level of unemployment has declined from 8.7 percent in 1994 to 4.5 percent this year. In fact, we had an increase in the number of job openings to 146,000 in the first quarter of 1999. That’s 2 percent of total jobs. Despite certain market shortages, for example in commercial services, over 800,000 people still depend on unemployment benefits.

WER: In which business sectors are you seeing the most growth or potential growth at home and overseas?

Ybema: Like most OECD countries, the service sectors in the Dutch economy show the fastest growth. Employment grew 4 percent in 1998 and added value grew 4.4 percent. Growth in the service sector was particularly seen in transport, communications and financial services. Most companies in these sectors work in international markets. We also observed quick growth in life sciences.

The application of biotechnology in products seems to be on a steady growth path. The share of biotechnology in pharmaceutical sales, for example, will rise from 9 percent in 1996 to 20 percent in 2000 and over 30 percent by 2010. Telecommunications and biotechnology are of great importance in attracting foreign direct investments to the Netherlands.

It is up to industry to develop and use the growth potential of these technologies by exploring their possibilities and by investing in new applications. The government enhances this process by creating the necessary framework conditions.

WER: Update us on the current status - and importance - of Japanese investment in Holland.

Ybema: Historically, the Nether lands has a good track record in attracting new Japanese investments. For Japanese companies, the Netherlands has proved particularly attractive for setting up production facilities, as seen by the presence of such firms as Fuji Film, Mitsubishi, Caterpillar, Kikkoman, Yakult, Kisuma Chemical and Nissin Foods. In addition, Nissan, Ricoh, Sony, Toshiba and Canon have set up European distribution centers in Holland, and the European headquarters of Kenwood Electronics, Yokogawa, Mitsubishi Electric and Yamanouchi are also here.

Famous for its canals, Holland gives visitors a new perspective from the water.

We welcomed an increasing number of Japanese fact-finding trips to the Netherlands in the first half of this year. We are confident that the number of new Japanese investments coming to the Netherlands will also develop in a positive way in the months ahead. The total number of Japanese companies in the Netherlands at the moment is almost 500, and they offer direct employment to 23,000 people. Japan is the sixth-largest foreign investor in the Netherlands.

Ybema: Dutch trade and investment policy is among the most open in the world. With merchandise trade accounting for more than 80 percent of GDP, the Dutch economy is one of the most internationally oriented in the world. Besides that, foreign investors are favoring the Netherlands for their European investment projects because of the country’s stable political and macroeconomic climate, its highly developed financial sector, its well-educated, flexible and productive labor force, its strategic location and the high quality of its physical infrastructure.

The 1998 survey of the global business environment by the Economist Intelligence Unit singled out the Netherlands as the country with the most favorable business climate for 1997 through 2001. And IMD’s World Competitiveness Yearbook 1998 ranks the Netherlands fifth worldwide.

Amsterdam seems dream-like when the lights reflect on the canals.

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