The Netherlands
Prime Moves
A publication of the Netherlands Foreign Investment Agency | July 2014 | UK & Ireland Edition
New Commissioner reviews investment climate Netherlands to score elements of the investment climate and services provided by the NFIA, alongside more open questions. This gives us a very robust picture of how competitive and compelling the Netherlands is as a business location. In the latest survey, conducted during the final quarter of 2013, we asked around 2,800 companies for feedback on everything from tax and labour regulation to infrastructure and quality of life. The scores have been consistently high over the last eight years or so and I’m delighted to report that 2013 was no exception. Independent reports agree
The NFIA appointed Jeroen Nijland as its new Commissioner in February 2014. Here, he outlines his initial thoughts on his new role and his views on the current and future investment climate in the Netherlands. It’s a great privilege to work with the NFIA. I am very familiar with the organisation and with FDI issues generally, as I’ve worked in a number of roles within the Dutch Ministry of Finance, the Dutch Ministry of Economic Affairs and the OECD. For the last two years I was seconded by the Dutch government to the European Commission, on the Task Force for Greece. My role as NFIA Commissioner is wide ranging, it is effectively that of CEO of the NFIA globally. So, in my first few months, I’ve been getting to know
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our people better. We have around 90 people within the NFIA: about one third of them are based in The Hague with me, while the rest are in our 22 offices around the world. As such, I’m travelling quite frequently – both in the Netherlands and elsewhere – and I look forward to meeting many of you in the UK and Ireland during future visits. Starting from a position of strength Working with the NFIA is, I am sure, going to be a very rewarding experience. Not least because the investment climate in the Netherlands continues to be so positive. We know this because our own research is reinforced by a number of independent benchmarking studies. The NFIA Investment Climate Survey is a comprehensive, ongoing study where we ask foreign investors in the
New Commissioner reviews investment climate
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Dutch PM meets Taoiseach and business leaders
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Testimonials: Ve Interactive and Total Produce
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NFIA News
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Recently landed companies
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The latest World Economic Forum’s (WEF) Europe 2020 Competitiveness Report ranked the Netherlands 3rd overall in the European Union: 1st for outstanding use of ICT; 2nd for education, social inclusion, and effective government policies;and 3rd for building a smarter and more inclusive society. Moreover, a recent, independent report from KPMG has confirmed many of these findings. In their latest Competitive Alternatives survey, into the costs faced by companies starting up in different countries, KPMG concluded that “the Netherlands is the most attractive country in Western Europe for foreign companies.” According to the report, the Netherlands owes its leading position in Western Europe to: • A low business tax rate and competitive government incentives for R&D activities; continued on page 2
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Stable facility and utility costs in both suburban and city centre office space; The best environment for hiring skilled workers; less than 10% of employers reported difficulties in filling skilled job vacancies; The best access to high quality ICT infrastructure.
Investing and innovating over the long term pays off The Netherlands has some very competitive sectors attracting a lot of investment; particularly agri-food, logistics, high tech materials, ICT, data centres and HQ operations. The innovation climate in the Netherlands is driving much of the competitiveness. We have been developing and implementing policies to stimulate private innovation and cooperation between business, research and government for several years. Stimulating innovation and finding smart solutions has always been the Dutch governement’s long term strategy and we are now starting to see it pay off, particularly in terms of the number of skilled technical experts across key sectors. Consequently, the Dutch investment climate continues to be very strong. This, combined with the fact that the recovery in the euro zone is now much more robust, will mean more investors choosing the Netherlands as a gateway to doing business across Europe. We’re here to help Making the most of opportunities in the Netherlands is where the NFIA can really help companies looking to expand their European business. We obviously have extensive knowledge
and information on doing business in the Netherlands. We are your first point of contact for all aspects of dealing with the Dutch government or regional authorities. We can also help you find the right location for your business, including organising fact finding trips to assess different facilities. Our aim is to give you a soft landing in the Netherlands. We have done so successfully for 193 projects in 2013 (see NFIA results 2013). Then, when your business is more established, we have an on-going development programme where we maintain contact, check you are OK and help you with any issues you have or plans to change or expand your business. The NFIA has been doing this for around 35 years and we are focused solely on investment rather than trade – so we know how to run a very efficient and smooth service. In summary, I feel the future is very positive for the Netherlands. Investment is increasing and we are continuing to innovate and welcome and support foreign investment. At the same time, I think it is good to underline that some things should not change; predictability and reliability are important factors for investors. With the Netherlands’ tradition of effective coalition government, our economic environment, political climate and public finances tend to be stable. We should never overlook this – it is one of our key strengths. Jeroen will be visiting London from 3-5 September 2014. If you are interested in a meeting with him please contact the NFIA UK & Ireland office.
New Commisioner reviews investment climate | page 2
NFIA results 2013
Dutch PM meets Taoiseach and business leaders In a whirlwind day, Prime Minister of the Netherlands Mark Rutte touched down in Dublin for his first working visit to Ireland on Tuesday 10th June. Prior to his dinner with the Taoiseach Enda Kenny, Mr Rutte met business leaders from the largest Ireland-based investors in the Netherlands and Dutch companies with operations in Ireland. Mr Rutte highlighted the special and strong relationship between both countries. “Both the Netherlands and Ireland believe in a new kind of Europe focused on growth and jobs. As a founding member of the European Union (EU) the Netherlands strongly believes in the EU as a common roof over our different homes. A new Europe focussing on issues that can only be tackled together, such as ambitious trade agreements and climate change, European where necessary but national if possible. We need a strong focus on areas that can only be effectively dealt with at European level to deliver real results for our citizens. This should not only be reflected in our priorities but also be embedded in the Commissions DNA. Improving the internal market by opening up the services market and decreasing fragmentation of the digital market, is essential to both countries,” Mr Rutte added. “The
Source: Paul Gerry
Digital Agenda could lead to 3,8 million new jobs in the EU. This is vital. We can’t be satisfied with jobless growth.”
quick to highlight his appreciation for their companies’ contribution to the Dutch economy.
During his afternoon meet & greet with business leaders Mr Rutte emphasised the strong economic ties existing between both countries. The Netherlands is the fifth largest destination for Irish goods and many Ireland-based companies expand to the Netherlands to successfully compete in mainland Europe. Business leaders present enjoyed an informative discussion with the PM where he was
Companies already operating in the Netherlands either based in the UK or Ireland, can rely on continued support from the Dutch government. The NFIA can provide introductions to Dutch government decision makers where necessary, information on changes to relevant legislation or cooperation with other agencies within the government should any bottlenecks occur.
Radical reform of Dutch dismissal and employment law The Dutch government is constantly improving its business climate. As a result of a new Social Agreement, drafted in 2013 by employers and unions together, the new Work and Securities Act will come into effect on 1 January 2015. Changes include: • • •
Dismissal law as of 1 July 2015: simplifying the procedure of termination of employment contracts (one route instead of two) and setting a maximum on the severance payment; Flexible employment changes as of 1 January and 1 July 2015: limiting the use of consecutive fixed-term employment contracts, probationary periods, and non-competition clauses and including an obligation for employers to inform fixed-term employees in a timely manner; Limitation of the unemployment benefits term as of 1 January 2016: the length of entitlement of unemployment benefits will be reduced from the current 38 months to a maximum 24 months. More details on www.nfia.co.uk/id
Dutch PM meets Taoiseach and business leaders | page 3
Ve Interactive is a young and fast growing technology company feeling right at home in Amsterdam. “Our company started in London in 2008,” explains Marjolein Koppelaar, Ve Interactive’s Managing Director in the Benelux region. “We specialise in ‘website abandonment’; tracking billions of transactions daily to provide data and insight that helps clients improve online efficiency, through better engagement and increased conversions.” “We have grown very quickly over the last four years,” she continues. “We now have 12 offices around the world and another four will open next year. I moved to Amsterdam
From a small green grocers shop in the 1900s, to Europe’s biggest fruit company with €3.2 billion turnover in 2013, Total Produce is a stunning Irish success story – and the Netherlands plays an important role. “We grow, pack, market and distribute every known fresh fruit and vegetable,” explains Vincent Dolan, European Marketing Manager for the Total Produce Group. “We serve the retail, wholesale and food service sectors through an extensive network across 20 countries. Our growth strategy has been M&A inspired with the Netherlands our second international acquisition in 1995. The Netherlands is a hugely important to us. It is one of Europe’s largest fresh producing nations while Rotterdam is one of the world’s
Testimonials | page 4
from our London office a year ago to set up the Benelux operation, where we already have 17 employees and are still hiring.”
staff. In fact, I was recruiting before we had an office, so my first team members had their interviews in a Dutch pub.
It was while working in London and researching the Benelux market that Marjolein realised the potential of the region. “The Netherlands in particular is quite a mature e-commerce market,” she says, “with a very high population of online shoppers. We soon realised it made sense to have an office in the region, not just to be close to our clients but also to be in touch with local market dynamics such as online privacy laws. It’s very important to us, as an international company, to act local.
Ve is a fast paced company and we only had six weeks to get everything set up, so it was quite a rollercoaster. Fortunately, we were able to sign all our paperwork – for the bank, the notary, everything – in one afternoon. Colleagues who have set up offices in other countries expressed surprise – but in the Netherlands it is do-able, if you are organised and have the right support.”
For me, setting up in Amsterdam was straightforward in some respects: as I am Dutch, I know the language and the culture. But I had never set up a business before, so I had a lot of questions. The NFIA and amsterdam inbusiness (aib) were very helpful. They advised me on the kind of company structure I should set up and about hiring most important fresh produce importation and distribution hubs with excellent infrastructure. Unsurprisingly, some of our industry’s most experienced and accomplished produce people are to be found in the Netherlands, recognising the stable economy and good labour relations. To companies looking to expand overseas, dealing I would have to say our experiences in dealing with the Dutch have been overwhelmingly positive. Our Dutch businesses contribute approaching one third of Total Produce’s group turnover. At the height of the season, we employ around 1,600 people in the Netherlands. However,” continues Vincent, “being in the Netherlands adds more value to our business than just sales and turnover. It makes us not only a bigger company, but a better company too.” The entrepreneurial spirit evident in the Netherlands is something Total Produce particularly values. “Our business model is based on empowered local management”,
And, how does Marjolein feel about her move to the Netherlands a year on? “It has been very busy, hiring and training,” she reflects. “I like the business culture here. It’s more informal than the UK, as the Dutch are very direct. That makes for a fast and efficient business environment – which is exactly how we like things at Ve Interactive.” www.veinteractive.com insists Vincent. “We value initiative because we don’t micro manage international businesses and in our experience the Dutch embrace this business model enthusiastically. They share our values, are cosmopolitan, ambitious, they value education and innovation and are inherently international in outlook. For us, the Netherlands represents an important gateway to Europe where we grow, consolidate and add value, before distributing produce to the continent as a whole. In our experience, the Netherlands represents a reliable benchmark for the rest of Europe; if our products and services work there, they will likely work in other countries.” “We have an excellent record in the Netherlands,” concludes Vincent. “We feel there are still opportunities there. The Netherlands is at the heart of our business in every sense; being there has made us a better company.” www.totalproduce.com
#LetsMeet in an #orangetaxi
The #orangetaxi service will be whizzing around London this summer. Arrive in style for a free, confidential 1-to-1 meeting with the NFIA with our orange taxi. If you would like to arrange a 1-to-1 meeting with us at the Dutch Embassy in London, please contact the NFIA. You can hail an #orangetaxi from the street or, if you prefer, we can meet at your offices. We can even organise a free #orangetaxi to collect you from your preferred London location* – so you arrive at our offices in comfort and style. Either way, if your company is looking to expand into mainland Europe, we would like to talk to you.
Source: Marco Kesseler
*The #orangetaxi service is only available in London zones 1-4 for the next 3 months.
New team at Dutch government Manchester office “The Netherlands Business Support Office (NBSO) in Manchester supports companies across the North of England, who are interested in doing business in the Netherlands but are not yet ready to open a separate office there,” explains Roxana de Raad, newly appointed Chief Representative. The NBSO team (Roxana de Raad and Els Steiger) works as an integral part of the NFIA organisation as a conveniently close port of call for companies in the region.
Roxana de Raad, Chief Representative
NFIA News | page 5
“Our two countries are natural business partners. We share a similar culture and strengths in the IT, Creative, Chemicals, Logistics, and Life Sciences industries. We also have a similar gateway function: Dutch companies see the UK as their gateway to other English speaking markets, while companies based in the UK successfully use the Netherlands as their gateway to mianland Europe. We look forward to supporting any aspect of your business in the Netherlands and helping your company to grow.”
Els Steiger, Deputy Representative
Source: Marco Kesseler
Director’s Cut Have you seen our #orangetaxis driving around London? A drive through London in this wonderfully orange vehicle is something very special indeed. See my #orangetaxi drive through London and find out how to have your own at www. nfia.co.uk/orangetaxi. We have many other exciting plans for the second half of 2014. I look forward to welcoming Japanese companies to our business networking reception on board the Clipper Stad Amsterdam. We will also be focusing on meetings with companies in the Life Sciences & Health, IT and Technology industries to find out how we can help them grow into mainland Europe. Naturally, we look forward to working together with all UK and Ireland based companies considering to take a next step into Europe or companies already located in the Netherlands planning on expanding further. We will keep you up to date with any changes in legislation, such as the new Work and Securities Act and new EU VAT rules for telecommunications, broadcasting and electronic services. I am always available for any assistance needed.
Food giant Unilever expands in Rotterdam Unilever has concentrated all of its European marketing and branding activities at its European headquarters in Rotterdam. Under the name Project NEXT, departments from the UK, France, Spain, Russia, Italy, Germany and other countries have consolidated in Rotterdam, resulting in an additional 400-plus jobs. Unilever completely refurbished its Rotterdam offices to accommodate colleagues from all over Europe. By the end of 2014, Project NEXT will be completed and will contribute to strengthening Rotterdam’s position as a global food hub. On any given day, two billion people use Unilever products to look good, feel good and get more out of life. The global giant’s portfolio ranges from nutritionally balanced foods to indulgent ice creams, affordable soaps, luxurious shampoos and everyday household care products. Unilever produces world-leading brands including Dove, Lynx, Lipton, Knorr, Ben & Jerry’s, Hellman’s and Flora. In accordance with Unilever’s sustainable living programme, 48% of its agricultural raw materials are sourced sustainably.
Prime Moves UK-based law firm Osborne Clarke expands their business with a new office in Amsterdam. Managing partner Simon Beswick: “Many international companies tend to work from the Netherlands, and there’s a huge amount of good talent available.”
Meet the NFIA: • • •
Monday 14 – 17th July: Farnborough Airshow 2014 – Farnborough Networking and 1-on-1 meetings at the Holland Pavilion (Hall 3 C9); Wednesday 3rd September : Clipper Stad Amsterdam – London Business networking reception for Japanese companies; Tuesday 18 – 20th November: Food Matters Live 2014 – London Food Innovation seminar featuring Food Valley.
Contact us:
Cottonwood Technology Funds, a US investor in technology start-ups, will establish its first European presence in the Twente region in the Netherlands. General Partner Ray Quintana:“We chose Twente as the epicentre of our European hub because of the existence of its worldclass entrepreneurial environment and the leading entrepreneurial university there.” UK-based digital agency BLISS, plans to open a new office in Amsterdam. “Manchester will always be our home, but moving to the Netherlands opens up an exciting new pool of creative talent and opportunities.”
NFIA UK & Ireland Embassy of the Kingdom of the Netherlands 38 Hyde Park Gate London SW7 5DP United Kingdom T: +44 20 7590 3286
Source: Marco Kesseler
info@nfia.co.uk www.nfia.co.uk www.twitter.com/NFIALondon
Editorial: Wendy Sayer Netherlands Foreign Investment Agency The Netherlands Foreign Investment Agency (NFIA) is a division of the Dutch Ministry of Economic Affairs which has been established with the objective of providing assistance and information to companies interested in setting-up, expanding or restructuring their pan-European operations in the Netherlands. The NFIA is here to assist you at every stage and with every aspect of your strategic decision making, by offering a combination of information, advice and practical help in strict confidence, without any obligation. Contact us today or visit our website www.nfia.co.uk for more detailed information on how we can take care of your business. While information in this newsletter has been compiled from reliable sources, the Government of the Netherlands takes no legal responsibility for any of the statements made. Articles in this newsletter may only be reproduced with permission of the Netherlands Foreign Investment Agency.