Inflation, sold out in the Netherlands: Opportunities for Vietnamese agricultural products

According to the Dutch newspaper "Volkskrant", the Government eased strict distancing regulations after the Covid-19 situation was gradually brought under control. Production and business activities slowly returned to a new normal.

The economy has improved as people return to work, school, and purchasing power at shopping centers and supermarkets rises after the pandemic.

Specifically, consumer demand immediately increased by five times, even in some items recorded a sudden increase of 10 times compared to the previous period.

However, according to a report from the Netherlands Bureau of Statistics (CBS), the country's inflation increased from 6.2% in February 2022 to 9.7% in March 2022. It has been a record-high number for more than 40 years.

Mr. Nhu Nguyen - Director of Vietnam - Netherlands import-export-trading consulting company VIEC said: "Netherlands's supply chain is recovering, so it has not kept up with the market's demand, leading to products in many industries are mutated. Rising prices and high inflation, scarcity of goods have made many importers”.

Since the Russia-Ukraine conflict broke out, supply chain bottlenecks have aggravated the situation. Specifically, inflation quickly increased to more than 12% within three weeks. This spike targeted staples like gasoline and food.

The reason is that Russia and Ukraine have been suppliers of agricultural products for many years to this market. The Netherlands imports wheat, cereals, sunflower oil, corn, beets...

Pasta, beer, and bread had doubled in price before the Russia-Ukraine war broke out. In January 2022, the price of 1 pack of 500-gram pasta is EUR 1.19, but 1 pack is given away for free, so the price per pack is only EUR 0.60. While at the moment, the price is already 1.65 EUR a pack.

Many people in the Netherlands have rushed to "collect goods" at supermarkets to stock up, causing many places to be overloaded. Typically, cooking oil from sunflower seeds, which is mainly supplied from Ukraine, has been included in the "Prohibited from consolidating" list.

To stabilize prices, the Government has reduced taxes on imported food items. Dutch businesses are looking for new partners to replace the current broken supply.

According to market research by VIEC Company - an import-export trade consultant between Vietnam and the Netherlands, many Dutch businesses want to expand their supply to Asian markets, including Vietnam.

Vietnamese agricultural products receive much attention from importers, supermarket chains, and consumers in the Netherlands. More than 80% of Dutch enterprises expressed their desire to cooperate with Vietnamese manufacturers.

Mr. Nhu Nguyen added: "Bringing products into the European market also helps to successfully create a foothold for Vietnamese brands in this potential market."

However, differences in culture, working methods, and problem-solving when there is a dispute between two countries from two different continents is a problem that is not easy to find a solution to, especially in the context of business activities. International trade activities are increasingly diversified and complex.

Many Dutch businesses have failed to cooperate with Vietnamese companies to import goods into the EU market, and companies in Vietnam have also encountered many failures in exploiting the competitiveness of their products to dominate the European market.

“In fact, Vietnamese products have great potential, but to seize the opportunity to bring products to the Netherlands and the EU in general, Vietnamese enterprises need to aim for sustainable export solutions, which means that they must accept long-term investment, but cannot be in the position of "sowing in the morning and reaping in the afternoon", said Mr. Nhu Nguyen - Director of VIEC Company in the Netherlands.

With over 11 years of experience in trade promotion between Vietnam and Europe, VIEC Company - an import-export trade consultant, is a reputable unit supporting Vietnamese manufacturing enterprises to bring products directly to consumers in the Netherlands.

VIEC Company has achieved certain successes in bringing water hyacinth tables and chairs, agricultural products, and coffee to the Netherlands.

By understanding the culture and markets of the Netherlands and Vietnam, VIEC Company firmly believe that we can help businesses gain many benefits when entering a new market. Without going through a third party, VIEC Company will work directly with businesses and partners.