Opening of the new Netherlands Foreign Investment Agency office, Istanbul
Speech by the Netherlands Minister for Foreign Trade, Frank Heemskerk, at the opening of the new Netherlands Foreign Investment Agency office, on 12 October 2009 in Istanbul.
Why invest in Holland?
Your Excellency, ladies and gentlemen,
When I visited Istanbul a year ago, the economic crisis was the talk of the town. Turkey's seven years of high growth had suddenly stopped and the economy had gone into decline. The outlook for 2009 and 2010 was uncertain, the mood gloomy.
Nonetheless, my mission to Turkey last year was the largest Dutch economic mission ever; I was joined by some 250 people, representing 130 companies and institutions. Like me, they were confident that Turkey would bounce back soon enough. We knew that this country's impressive economic potential was as strong as ever. We trusted that Turkey would remain open and trade oriented. And we believed in the entrepreneurial spirit and the skills of its people.
Strong bilateral economic relations
We have been proved right. Next year is expected to be better than this year, while growth should pick up in 2011. The foundations are solid. Bilateral trade grew by seven per cent a year until 2007. The Netherlands is already the eleventh largest destination for Turkish exports. The Dutch are the third largest group of foreign tourists visiting Turkey. And the Netherlands is the second largest foreign investor in Turkey, ranking behind Germany but ahead of UK.
Despite the crisis, Turkish companies have continued to show interest in investing in the Netherlands. And this has allowed the Netherlands Foreign Investment Agency to conclude a successful pilot project in Istanbul. Over the past year, the NFIA helped two companies set up branches in the Netherlands: the Anadolubank, which established an office in Amsterdam, and Lotus Jeans Benelux, now located in Utrecht. And so, today we are here in this dynamic city for the opening of a new NFIA office in Istanbul.
Turkey and the Netherlands
Our partnership has endured ever since we first opened a diplomatic mission in Istanbul in 1612. We will have plenty of reason to celebrate four hundred years of good diplomatic and economic relations in three years' time! In the meantime, I look forward to the festivities here in next year's Cultural Capital of Europe.
List of names
Holland is one of the world's largest recipients of foreign direct investment. This list of names is only a selection of the 8,000 foreign companies that have already invested in the Netherlands. More than 80 of them are Turkish. Anadolubank is merely the latest addition to the already-substantial number of Turkish banks in the Netherlands - they are the main source of foreign direct investment from your country. But we also have quite a few holding companies, marketing and sales offices, and distribution centres from companies in many other sectors. These include chemical producer Organik Kimya, Vestel Electronics, machinery and moulds producer Kale Kalıp, Anadolu Efes Breweries and Normed Shipping.
Typically Dutch? Or Turkish?
And did you know that many typically Dutch carrier tricycles are produced in Turkey for a Dutch company set up by a man of Turkish origin? Why do all these companies invest in the Netherlands? And why should you? Let me give you just three good reasons.
Gateway to Northwest Europe
The first reason is that Holland is the Gateway to Northwest Europe. We provide fast access to the economic heartland of Europe and to the European Union's 500 million consumers, thanks to a superior network of roads, rail and waterways. Half of all European distribution centres are located in the Netherlands, and our logistics industry is second to none. According to the World Bank, our customs and border-control procedures are the world's most efficient and effective. To you, this means fast, easy and cost-efficient access to customers. Not only in Europe, but in the wider world, too. This is thanks largely to Schiphol International Airport and the Port of Rotterdam, which is one of the world's largest.
Digital infrastructure
Holland is not only the physical, but also the digital Gateway to Europe. Our digital infrastructure was ranked sixth out of 68 large economies by IBM and The Economist. Amsterdam hosts AMS-IX, the world's busiest internet exchange. We run a number of high-capacity R&D networks. We are also one of the most wired countries in the world: nine out of ten households have a computer and seven out of ten have a broadband connection. We expect our international reputation in IT to be boosted even further by next year's World Conference on Information Technology in Amsterdam.
Business environment
The second reason for investing in Holland is our business environment. This is another reason why Turkish companies love doing business in our country. We are straight talkers, and a deal is a deal. The fact that two people are sharing the bike is also significant. The Dutch are team players and we appreciate public-private partnerships, combining the expertise of business, academia and government for everyone's benefit.
Dutch employees are multilingual, internationally oriented and highly qualified: a quarter of the labour force has attended higher education, a high share even by European standards. In addition, Dutch employees are highly productive and flexible, while salaries, benefits and social security costs are equal to the European average.
This means it's easy for you to recruit the right people. Including people with a bi-national background, since we are home to a large Turkish community - people who know both your culture and ours.
Tax climate
When talking about our business climate, foreign investors always mention our favourable tax climate. The Dutch tax authorities are open to discussing an appropriate tax regime with companies, resulting in binding advance tax rulings. The corporate tax rate has been lowered over the years to 25.5 procent at present. We have no withholding taxes on ordinary interest or royalties. In addition, the Netherlands has signed treaties for the avoidance of double taxation with Turkey and more than 80 other countries.
Quality of life
The quality of life is the third and final reason to invest in the Netherlands. Holland is one of the most popular countries among expats - and many want to prolong their stay. It's a stable, safe and child-friendly country, with excellent education and healthcare systems, and a rich social and cultural life. Foreigners can find their way easily, because everyone speaks English, from the chairman of the board to the local baker. And for those who want to explore Europe at the weekend: Paris, London and Brussels are close by.
Ladies and gentlemen,
In short: three reasons to invest
In short, there is every reason for Turkish companies to invest in the Netherlands. It is the physical and digital Gateway to Northwest Europe. We enjoy an excellent business and tax climate. And expats and local staff enjoy an exceptional quality of life.
New NFIA office
Eighty Turkish businesses have already decided to establish offices in the Netherlands, and I sincerely hope that many of you will be next. I believe we have a lot to offer. From now on, the Netherlands Foreign Investment Agency will be right here in Istanbul to help you set up shop in Holland. And I am grateful my Turkish counterpart and myself have signed a goodwill document for the occasion of the opening. I am thrilled that we have found a Turkish area director who is experienced, intelligent and well-connected in both the Netherlands and Turkey. Congratulations, Deniz Mısır!
NFIA
Ladies and gentlemen, I certainly hope my presentation has made you hungry… So let us first enjoy our main course and save the official opening of the new NFIA office for dessert.
Thank you.