Transcript PowerPoint-presentatie

Attraction of Foreign Company Investment
by Local Governments
(as part of theme track “The local role in international trade
delegations”).
By Piet Buytels, Chief Executive, Municipality of
Schiedam, The Netherlands
October 2004, ICMA’s 90th Annual Conference, San Diego
The Netherlands
• Amsterdam, Rotterdam/Schiedam, The Hague
• Population 16 million
• National language Dutch, multilingual, English spoken by
75% of the population
• Density 472 persons per square km
• Workforce 7.3 million
• Member European Union, 25 countries, 454 million people
Rotterdam/Schiedam
Rotterdam:
• Population 600.000
• The biggest harbour in the world
• Port of Rotterdam: international centre of trade,
transhipment, industry and distribution
Schiedam
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Nearby Rotterdam
Population 76.000
Founded since 1275
Unique, historic city centre
Famous for jenever/wodka, shipconstruction and off-shore
activities
theme track “The local role in international trade delegations”
has been extended with “Attraction of Foreign Company
Investment by Local Governments”.
The Netherlands: hardly any role local governments
necessary in international trade delegations. Why not?
The national government (ministry of Economic Affairs;
NFIA, Export Division) of the Netherlands is initiating and
coordinating trade delegations abroad. Dutch companies
are invited to join these delegations: matchmaking
intensions; partner search.
Key questions for this presentation
1. how to attract foreign companies
2. how to keep them in your city
How to attract foreign companies
1. Keep in close contact with (national) ministries and/or
with your Chamber of Commerce abroad
• Netherlands Foreign Investment Agency (NFIA) which is a division of
the Ministry of Economic Affairs is promoting foreign investments in
the Netherlands and can also be helpful by coordinating acquisition
activities of regional and local authorities. Yearly up to 50% of foreign
investments in the Netherlands via the NFIA. The NFIA has 14 foreign
representative offices (US, Asia, UK, Germany).
How to attract foreign companies
2. Know your advantages and show your excellence
For example
reasons to invest in the Netherlands
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Strategic location in Europe
Stability: political, social and economical
Excellent business environment
Superior logistic and technology infrastructure
Highly educated, multilingual & flexible workforce
Quality of life
How to attract foreign companies
3. Show interest in the background of the foreign
companies
• Research company profile
• Multilingual (speak the language)
• Show real interest in their culture
How to attract foreign companies
4. Give attracting of foreign companies a place in your
organization
• Appoint an account manager for international companies
• Share experiences with other cities in your country: know
each others strengths and weaknesses, don’t be afraid for
competition
How to keep them in your city
5. After sales
(keeping them is easier than winning them)
• Visit at least once a year the foreign companies who settled
down in your city and use them as ambassadors to promote
your city for international business opportunities.
Especially for smaller cities a good and cheap instrument.
• Visits if possible with a City Councillor. The City of
Schiedam is well known for this activity in the Netherlands
since the introduction of “the week of the company visits”.
• Pro-active, always. For example: be helpful by contacting
an employment centre in order to provide workforce, assist
businesses through municipal processes, help to interpret
planning and zoning regulations.
• and if they leave ……exit interview
Dutch results
5,100 Foreign business establisments (1,600 from US), good for
529,000 jobs = 7% of all jobs in the Netherlands (US companies
200,000 jobs). New jobs 2000: 5,000, 2001: 3,500, 2003: 1,900.
Below: examples of Foreign Business Establishments in the Netherlands.
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Acer
Amgen
Canon
Cisco
Dell
DHL
Dow Chemical
Dupont
Ericsson
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Fuji
Giant
Heinz
Ingram Micro
Kikkoman
LG Electronics
Mattel
Mercedes-Benz
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Mitsubishi
Mobil
Nike
Pemstar
Starbucks
Sun Microsystems
Tatung
Trigem
Yakult
Economic Performance of the Netherlands
Gross Domestic
Product:
Economic growth Real
GDP
Export of goods
380 billion US$ (2001)
0,3% (2002)
243,36 billion US$ (2002)
Export of goods as % of
58,12% (2002)
GDP
Import of goods and
260,21 billion US$ (2002)
commercial services
Import as % of GDP:
67,75% (2002)
Most important export
destinations:
Germany: 26%, Belgium: 12%,
UK: 11%, France: 10%
Questions ?
• Sources used: Dutch Ministry of Economic Affairs, NFIA, Statistical Yearbook of the Netherlands