Int'l Cooperation

Last updated: Monday, April 22, 2019


Denmark Extending Strong Support to Vietnam Development Programmes

Posted: Wednesday, November 23, 2016

On November 25, 1971, Vietnam and Denmark established official diplomatic relations. This was an important milestone that opened a new chapter of bilateral diplomatic relations. This special relationship has been advancing over the time especially through Denmark’s employment of a number of aid instruments. The Nordic country has been extending strong support to Vietnam through many development programmes/ initiatives in agriculture, food safety, education, health, green growth, etc.

Danida Business Delegations (2014-current), which is for a group of companies to do delegation visits (in- or outgoing), has conducted and planned several delegation visits in Vietnam for 2016-2017, mainly focusing on education and food and agriculture.

Danida Business Finance (2016-current) offers interest free loans for infrastructure projects in Vietnam with priority sectors being green growth, water, renewable energy, food, education, healthcare and agriculture. At present, four waste-water treatment projects are ongoing and a number of projects within green growth are being discussed.

Danida Market Development Partnerships (2014-current) is designed to support commercially oriented partnerships for sustainable market development in developing countries with participation from civil society organisations, private business, academia and public institutions.

Danida Business Explorer (2014-current) provides financial support to Danish companies investigating business opportunities in developing countries. In Vietnam, three projects have been under way.

Strategic Sector Cooperation (2015-2018) is extending cooperation in education, health, environment and food. The education cooperation focuses on vocational training in two sectors, furniture and graphics, aiming for increased cooperation between enterprises, vocational schools and authorities; Health cooperation is designed to address chronic diseases in primary health care sector, focusing on family doctors. It will develop guidelines, patients’ pathways, implementation manuals and establish a core training team for practitioners, in cooperation also with Novo Nordisk. Regarding environment, the focus is placed on developing tools to assist Vietnamese authorities in enhancing the industrial sector’s compliance with environmental laws and regulations to support sustainable growth and development; the food sector focuses on developing tools to assist Vietnamese authorities in enhancing compliance with the food safety laws and regulations to improve food safety standards and support the development of an internationally competitive food industry. Key deliverables for pilot implementation include guidelines and procedures to enhance the current food safety control system, including institutional cooperation.

With a new Danish strategy on development cooperation, Denmark is enhancing efforts in development research by expanding research collaboration to countries involved in the strategic sector cooperation. This new research cooperation modality is currently under development and will be launched in 2017. A new facility for fellowships for higher education in Denmark linked to the strategic sector cooperation will also be launched in 2017. Energy & Climate (2013-2020) is a long-term partnership focusing on energy efficiency in industry and building sectors and renewable energy in the power sector. A key outcome is the Green Investment Facility, spurring technological transformation in the Vietnamese private sector. Another outcome will be a better understanding on policies increasing the share of renewable energy in the power system. Danish support 2013-2016 is DKK 65 million (US$10 million) and is still under development for 2017-2020 as part of the Danish Climate Envelope. Mini Grant Facility (2015-current) enables the Danish embassies in selected emerging developing economies to support small strategic interventions with eligible partners, i.e. national authorities and local non-profit civil society organisations. In 2015, three projects were implemented in Vietnam and in 2016 four projects are expected. Projects dealing with economic governance and human rights issues are given priority.

Apart from the above, Denmark also has new Danida-supported thematic investment funds that might be relevant for Vietnam in the coming years: Climate Investment Fund (IFU) offers risk capital and advice for climate projects in developing countries, the growth markets in Asia, Africa, Latin America and parts of Europe; Agriculture Fund is expected to generate investments of close to DKK 6 billion (US$895 million) in improved production, distribution and food sales in developing countries in Asia, Africa, Latin America and parts of Europe. The Fund will invest in projects throughout the entire value chain from farm to fork, where Danish commercial interests are included – thereby utilising Danish technology and know-how; SDG Fund /Global Fund is currently under establishment. It is expected to generate investments into sustainable and viable projects within climate, energy, water and sanitation, food products, health, production and service, and thus generate growth, jobs and tax income in developing nations.

In the past 45 years, the relationship between Vietnam and Denmark has become closer at governmental levels, and extensively and positively affected the peoples of the two countries. Hopefully, the bilateral friendly and cooperative relationship will be developed comprehensively, intensively and extensively in the coming years.

Nguyen Mai

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