Alfa English > Business

How can Lithuanian companies expand their activities to the Netherlands? That was the main issue yesterday in the seminar organized by the Lithuanian Development Agency in cooperation with the Dutch embassy in Vilnius.

First of all, it has to be taken into consideration that the Netherlands is an open economy with a long tradition of international trade, also with the Baltic Sea region. A century old trade network, stretching from the Netherlands to Saint Petersburg is reemerging. This northeastern economic axis is known as the Northeast Corridor (NEC). This is a clear opportunity for Lithuania, with its ice-free seaport in Klaipeda and its developed road transport sector. The infrastructural preconditions are present!

Then what are the exact opportunities for Lithuanian Small and Medium Enterprises (SMEs)? First of all, Dutch producers are looking for trade partners to incorporate into their supply chain. This means that Dutch companies are seeking to outsource parts of their activities. Thus, Lithuanian SMEs should in the first place not seek a new market for their existing products, but should try to find out if their competences would possibly fit into the supply chain of Dutch enterprises. Lithuanian companies have the opportunity to become part of the supply chain of Dutch companies by producing for example prefabricates or parts of products.

Dutch companies are thus looking for suppliers, but where to look for them? If Lithuanian companies want to take this opportunity, they should let potential Dutch partners know. They have to present themselves in a way which does not only describe their current products or services, but also the activities which they are capable of. If a Dutch company wants to know more about a potential Lithuanian partner company, it will first take a look at the internet. They look for the best solution and that is not only cost-related. Lithuanian producers often lack websites that give a good description of their activities in English.

An important characteristic of the Dutch business environment is its focus on networking. It is all about communication and presentation. Dutch companies are not seeking for short-term business agreements, but are looking for a stable partner which is able to provide high quality goods and services in times of economic boom, but also during times of recession as is the case now. It is much more expensive to change supplier than to maintain existing relationships with suppliers. This means for Lithuanian companies that once they are in the supply chain, they have to maintain close ties with the Dutch enterprise. The Dutch like face-to-face communication and they appreciate it highly when a Lithuanian company shows its involvement by regular visits to the Netherlands. That’s how it works! A long-lasting business relationship is based on trust. If a Dutch company would ask a Lithuanian company if a certain product can be made or service delivered, the Dutch highly regard it as the Lithuanian company just tells when it is not sure if the good or service can be delivered. It is therefore about clear communication. This means that for Lithuanian companies excellent English skills are required.

Another issue which is highly regarded in the Netherlands is innovation. In order to remain competitive at the world markets, it is necessary to continuously improve the product and constantly seek for decreasing costs and improved efficiency. Low costs can be found elsewhere in Central and Eastern Europe and therefore Lithuanian companies have to seek its comparative advantage in other ways. The key is again communication by networking. Show initiative for innovation. Do not be afraid to share your thoughts for improvement with Dutch companies.

Dutch companies are also heavily involved in Social Corporate Responsibility (CSR), which is a form of corporate self-regulation integrated into their business models. CSR focuses on the norms and values of the company, environment and social issues (sustainable development), and the social involvement of the company into society (i.e. charity). An important aspect of the promotion strategies of Dutch companies is the reference to its CSR policies. In order to become part of the supply-chain of a Dutch company it is of utmost necessity that potential Lithuanian partners adopt CSR methods and if they already have they should emphasize this on their website at what they have to offer. Here lies an opportunity for Lithuanian companies. An ISO 9001 certification is a good starting point but it requires more to convince Dutch companies to do business. Active CSR implementation therefore provides an opportunity for Lithuanian companies. The OECD provides the necessary guidelines for developing CSR.

There are many ways to approach Dutch producers. The Dutch chamber of commerce can be contacted for further specific information. Another good starting point is LEPA or the Dutch embassy where there is an economy and trade department which can provide the necessary information to come into contact with Dutch producers. Other useful contacts are Dutch-Lithuania Businessconnect and Nordconnect.

It is also important in the Netherlands to show your face. It might require some investment, but it can be highly beneficial to go to the Netherlands where trade fairs are regularly organized in which Lithuanian companies have the opportunity to show their face and present their products. Because with the actual quality of Lithuanian products is nothing wrong!

The key to success is to show your face, and once contact is established these contacts need to be maintained and preferably intensified. If that occurs, long-lasting business ties can emerge and the survivability of the Lithuanian company will become more secure. Even during an economic crisis.