More than ever, business opportunities are wide open to foreign businesses including those from Denmark. Vietnam-Denmark Business Forum sponsored by Danish Embassy in late November 2011 further reaffirms the interests of the Danish Embassy in Vietnam. As the representative oftheVietnamese business community, VCCI has actively promoted the linkage and cooperation between business communities of the two countries. On this topic, Vietnam Business Forum had an interview with VCCI President Vu Tien Loc. Nguyen Mai reports.
Can you describe the cooperation between VCCI and the Danish side in promoting trade and investment in recent years?
VCCI has cooperated with the Danish government on a programme of Private Sector Development (PSD). The programme was started most successfully since 1996 by the Danish Embassy in Hanoi. With technical assistance of financial experts of the programme, 40 projects have been implemented by Vietnamese private enterprises and Danish partners in such areas as garment, food processing, information technology, mechanics, interior decoration, water and environment. Main partners are Danish Industry (DI) and Danish Chamber of Commerce (DCC).
In June 2000, in the framework of the Asia-Europe Trade Promotion Programme (Europartenariat) sponsored by the EU, VCCI organized a business delegation participating in Aalborg Trade Fair and conducting market surveys in Denmark. In September 2003, on the occasion of the Danish Prince’s visit to Vietnam, VCCI sponsored a bilateral business forum attracting a large number of Vietnamese businesses interested in the Danish market. At the forum, a MOU was signed between VCCI and DCC to promote bilateral economic cooperation, trade and investment. In November, 2004,VCCI organized a business mission accompanying Deputy Prime Minister Vu Khoan’s visit to Sweden, Finland and Denmark. In June 2008, VCCI organized a business mission accompanying Deputy Prime Minister Nguyen Sinh Hung’s official working visit to Denmark. On that occasion, VCCI and DI successfully sponsored the Vietnam-Denmark Trade and Investment Promotion Forum. And in September 2009, VCCI organized a business mission accompanying Prime Minister Nguyen Tan Dung’s official working visit to Denmark.
As representative of the Vietnamese business community, how do you evaluate business relations between Vietnam and Denmark?
First of all, I highly rate the investment and cooperation of Danish businesses in Vietnam in the past years. Though small in size, Denmark is leading other countries in the world in food production and processing and ranks 9th in fashion export among OECD countries. Denmark is also known as a leader in modern and efficient water supply, drainage and treatment. Denmark has long established business cooperation with Vietnam and ranks 25th among 93 countries investing in Vietnam. In 2004, there were 50 Denmark companies operating in Vietnam, and the number has now increased to 125. In 2009, there were 74 investment projects with registered capital of over US$500 million. In November 2010, they increased to 90 operating projects and over US$592 million. Dong Nam A brewery (US$79.6 million) and Hue brewery (US$48.6 million) are exemplary Danish investment projects in Vietnam.
However, those figures remain modest in comparison with the good relations, potential and aspirations of the governments and people of the two countries. To attain the target of US$1 billion in bilateral trade and US$1 billion in Danish direct investment in Vietnam in the coming years, Vietnam stands ready to facilitate Danish investment and cooperation for the long-term and stable interests of businesses and people of the two countries.
What is the comparative edge of business communities of the two countries?
Danish businesses in Vietnam focus in garment, water technology and food processing. Those areas are comparative advantages of Danish know-how and technology. In late March and early April 2011, some 50 Danish businesses have visited Vietnam, including 11 companies specialized in water supply, drainage and treatment, 20 companies in garment and the rest in animal husbandry (pigs). Businesses of the two countries had the chance to discuss at seminars organized in Hanoi and Ho Chi Minh City to introduce technology in selecting and producing pig species, ensuring food safety and promoting Vietnam-Denmark partnerships in the garment industry. Also, at the seminars, Danish businesses shared with their Vietnamese counterparts technology, know-how and experiences in business activities and seeking business partnership. Vietnamese and Danish businesses have great potential for cooperation in the garment industry. There are currently 12 Danish garment companies investing in Vietnam taking advantage of the bountiful, young and low wage Vietnamese labour market,.
In fact, Danish companies can bring to Vietnam new technology and know-how, train the workforce and supply machinery. Vietnamese businesses can cooperate in upgrading the garment industry, improving business management, and developing new brands in the domestic market. They can also increase social responsibility and improve working conditions with safety and better living conditions for workers. Consequently, they can raise worker skill and upgrade management to increase competitiveness and improve products to meet the ever higher demands of the world market.
I strongly believe that the Vietnam-Denmark Business Forum in November 2011 will increase the number of Danish companies investing in Vietnam, especially in clean industries, food processing, aquaculture, garment, IT, interior decoration, water and environment. Such forums will create more business opportunities to promote trade and investment between Vietnam and Denmark.
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