The flamboyant coach thinks Oranje face a tough task to make an impact at this summer's tournament as he does not see them as one of the teams to beat.
Holland made it to the final at the 2010 World Cup, where it was beaten by Spain following an Andres Iniesta goal in extra time, but Van Gaal does not expect the team to go one better in Brazil this summer.
"We consider ourselves as outsiders. I arrived as coach with certain targets - qualify for the finals and then reach the semifinals," Van Gaal said at a press conference. "We have introduced a lot of fresh young blood into the team and played really nice football and scored a lot of goals in the qualifying group.
"However, the semifinals will be a really hard goal to achieve. According to the FIFA ranking, we are eighth or 10th. It doesn't matter which, but we are not one of the favorites. I view Brazil and Argentina and, from Europe, Spain and Germany as the favorites."
Netherlands has been paired with Spain, Chile and Australia in the group phase.