Robin van Persie and Arjen Robben both scored twice as Holland avenged their 2010 World Cup final defeat by routing the holders in emphatic style.
Spain suffered their heaviest World Cup defeat and their worst loss since being drubbed 6-2 by Scotland in 1963.
"That wasn't what you expect from your first World Cup match, I had expected the manner of the goals, but not that many," admitted the Dutch coach.
"It's everything to do with strategy and the willingness of the players to convert their chances with conviction."
"Yes, without a shadow of a doubt, you could see that in the last 20 minutes when we started to play the ball around," said Van Gaal.
"This result gives the players confidence and I expect us to play better."
Veteran midfielder Xabi Alonso gave the Spanish a first-half lead when he netted a contentious penalty before the Dutch fought back.
Van Persie's diving header 90 seconds from the break put the Dutch level before the Manchester United star added his side's fourth.
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