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Pioneers in international business
Mention the Netherlands also known as Holland and many people will think of clogs and windmills. The Dutch do not mind, but if truth be told, the Netherlands is traditionally a country of commerce and transport. As the article on the Dutch East India Company in this supplement describes, the first trade relations with Bengal date back to the 17th century. Dhaka still has several places which remind us of this commercial drift of the Dutch.
Transhipment country par excellence
The 17th century has long passed, but the Netherlands' leading position as a transhipment country is still alive and well. To give you an idea of just how large the Dutch logistics sector is, consider the following. The earth is home to circa Dutch population of 16 million seem miniscule by comparison. This number of Dutch citizens is less than 0.3 percent of the world's population, and yet the Netherlands is still the world's sixth largest exporting country. Such a small country cannot produce all the goods that it exports on its own. In simple terms this means that countless foreign companies opt to distribute their goods via the Netherlands, most importantly via Rotterdam Port, Europe's largest port as well as via Schiphol Airport, the most modern and the third largest cargo airport in Europe. When it comes to importing, the Netherlands is the world's eighth largest importingcountry.
Why foreign companies invest in die Netherlands There are many reasons why foreign companies invest in the Netherlands. The logistic facilities - including the 'new' one such as broadband internet access are first class, fhe corporate tax and wage tax rates are very low at 25.5 and 15.5 percent respectively, and earnings from innovative products and services are subject to an even lower rate of 10 percent. The quality of the public services and infrastructure and the standards of living are all high, fhe workforce is flexible and well educated, fhe Dutch are open, achievement and result-oriented, punctual, keep their promises, are firm but fair and speak English.
fhe Dutch economy has several sectors in which it has a comparative advantage and in which Dutch companies are true pioneers in international business. These sectors include Water Management, Energy, Environment, Logistics and Financial services, Shipbuilding, Food and Flowers, and Chemicals.
Bilateral trade with Bangladesh
The Netherlands has been a trading partner for many centuries with Bangladesh. The current trade links between the two countries are relatively modest and mainly skewed towards Bangladeshi export to the Netherlands. Dutch export to Bangladesh was around EUR 47 million while Dutch import from Bangladesh amounted to circa EUR 305 million. When looking at the composition of the bilateral trade figures, the Netherlands mainly imports RMG from Bangladesh, while Dutch export to Bangladesh mostly consists of machinery & transportation products and chemicals.
Trade between the two countries is promoted by the Dutch Bangla Chamber of Commerce and Industry, based in Dhaka. This chamber represents around 80 companies which all have a business relationship with the Netherlands.
Private Sector
Development
To support the Private Sector of Bangladesh and to further stimulate the long standing bilateral economic relation between the Netherlands and Bangladesh, the Dutch Government offers a number of support programmes aimed at Business to Business support, infrastructure development, and providing access to skills and knowledge.
B2B support
the Private sector Investment Programme (PSI) provides subsidies to Dutch and foreign companies entering into longterm cooperation with local partners in developing countries. The preferred sectors for Bangladesh are Agriculture and Agro Business, and Information Technology. However, this does not mean that projects in other sectors are not eligible under the PSI program in Bangladesh. To achieve financial growth, employment creation and income generation in Bangladesh, the Dutch government provides companies with an opportunity to make an Innovative investment together with a partner in Bangladesh The maximum budget per project is 1.5 mil lion euro of which 50% will be provided in the foim of a grant. PSI has two granting procedures a year.
Moreover, to help Bangladeshi companies find a suitable business partner, Dutch government has developed the Match Making Facility (MMF). Bangladeshi companies, looking for a Dutch counterpart for either expertise, joint investment'-, opening of export markets oi trading, can apply for this facility. For this type of assistance companies could contact the Netherlands Embassy in Dhaka
Infrastructure development Ilie Netherlands government also launched a new programme for infrastructure development in developing countries, called ORIO. This facility aims to stimulate investment in public infrastructure in developing countries. For Bangladesh the applicable sectors are: water management, energy; environment, and agriculture. The total annual funds available for ORIO worldwide are euro 180 million. The budget for each project must be between Euro 2 million and 60 million euro. ORIO has two tenders a year.
Providing access to skills and knowledge In addition to PSI and MMF, capacity development among local business is stimulated via the Netherlands Management Cooperation Programme (PUM) and the Centre for the Promotion of Imports from Developing Countries (CBI). Under PUM, senior Dutch experts give businesses in Bangladesh tailor-made advice. The CBI provides businesses from developing countries with the knowledge, skills and approach they need to enter into trade relations with and export to the European Union.