Increasing foreign influence on Dutch private sector

17/07/2008 15:00

In 2006, foreign influence on the non-financial private sector increased further. Non-financial companies realised a total value added to the amount of 305 billion euro. Foreign-owned companies accounted for approximately 26 percent, as against 19 percent in 1996. Conversely, Dutch companies are very active in purchasing foreign companies.

Largest foreign influence in manufacturing industry

In 2006, foreign-owned, non-financial companies in manufacturing industry generated 40 percent of value added in this sector, as opposed to 28 percent in 1996. In 2006, there were categories within the sector manufacturing industry where the share of value added was more than 50 percent. The basic metal industry tops the list: 98 percent of value added is generated by foreign-owned companies.

Share foreign-owned companies in value added by industrial category, 2006

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Sharpest growth foreign influence in transport and communication sector

In the period 1996-2006, the value added of foreign-owned companies in the sector transport and communication increased from less than 1 billion euro to over 9 billion euro. Their share in value added rose from 4 to 28 percent. In 2006, foreign investors had gained control over most providers of mobile telephone services.

Growth share foreign-owned companies in value added by sector

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Foreign assets Dutch companies growing

Just as foreign investors are active on the Dutch market, Dutch investors seek to gain control over foreign companies. The total amount invested abroad by Dutch companies has risen dramatically as is shown by the book value of foreign subsidiaries of Dutch companies. Nearly half of total assets of Dutch companies is made up by foreign subsidiary companies, as against only one third in 1996. Foreign subsidiary companies generated a total profit of nearly 25 billion euro, i.e. more than 40 percent of the net result before taxation in 2006 versus 32 percent in 1996.

Foreign subsidiary companies owned by Dutch companies by share and ownership

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Alan Sebo en Rob van der Holst