Vietnam - Denmark: Comprehensive and Sustainable Cooperation

In 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 experienced numerous challenges over the time, but continues to stand firm, and develop extensively and comprehensively in all areas.

 

Denmark is one of the first European countries to grant aid to Vietnam. The country is now the 7th largest European ODA donor for Vietnam and by far the largest donor taking into account the size and population of its country. It supports Vietnam in such target programmes as administrative and legislative reform, business sector, finance, credit, banking, construction material, fisheries, agriculture, rural development, water supply and environmental sanitation. In 1993, it added Vietnam to the list of regular recipients of Danish official development assistance (ODA). To date, as much as US$1.2 billion million has been granted. Currently, Demark grants more than US$60 million of non-refundable aid to Vietnam each year, with US$65 million in 2010.

Climate change is Denmark’s major aid programme for Vietnam. It is funding US$40 million for the "Adapting and mitigating climate change in Vietnam" programme. In the current developing business environment, Vietnam really needs a complete legal system, and with the “Justice Partnership” Programme (2010-2015), Denmark has been cooperating with the Government of Vietnam to develop the judicial sector and protect rights in Vietnam. In addition, Denmark is very active in supporting Vietnamese small and medium enterprises (SMEs) through the Business to Business (B2B) Programme and Business Sector Programme Support. Especially, the Danish Government has recently decided to grant non-refundable aid of US$23 million for the Vietnam Business Sector Support Programme in the 2011 - 2013 period. The objectives of the programme are to strengthen the competitiveness of growth- and export-oriented private enterprises and to create jobs. From their outcomes, Denmark’s aid programmes have played important roles in successfully carrying out many national targets.

 

Two-way trade revenue kept growing from 2002 to 2010. The bilateral trade turnover was just US$140 million in 2002, but the value soared to US$1 billion of imports and US$700 million of exports in 2010 (as of October). Vietnam’s major exports to Denmark include seafood, handicraft, pottery, porcelain, textile and footwear, while it imports electrical equipment, chemicals, mechanical products and machinery from Denmark.

Cultural exchange is also one of the priorities that the two nations focus on. Cultural exchanges between the two countries are strengthened by regular organisation of exhibitions, music concerts and other performances by Vietnamese and Danish artists. Many Danish and Vietnamese artists participated in performances in the two countries. Especially, the Denmark - Vietnam Cultural Development and Exchange Fund (CDEF) for 2011 - 2015, which was launched in early 2011, aims to support contemporary cultural activities in Vietnam and to promote cultural exchanges between Vietnam and Denmark. This is a practical action that helps further bolster cultural cooperation and is also an opportunity for new and creative projects of Vietnamese artists as well as collaborative projects of Vietnamese and Danish artists.

 

Regarding sports, Denmark has sent sporting teams to Vietnam to perform and interact with athletes and the public in many provinces and cities to strengthen friendly relations and mutual understanding of the two peoples. Denmark has also dispatched badminton and football players to play in friendly and charity matches in Vietnam. The Vietnamese Ministry of Culture, Sports and Tourism and the Danish Ministry of Culture signed a memorandum of understanding on cultural and artistic cooperation between the two nations from 2009 to 2014. In November 2011, the Government of Denmark will hold a "Denmark Week in Vietnam" and many other cultural activities to celebrate the 40^th anniversary of Vietnamese - Danish diplomatic ties. Equally, the Vietnamese Ministry of Culture, Sports and Tourism will host “Vietnam Cultural Days in Denmark” and many typical activities like performing arts, opening galleries and concerts to introduce the culture, customs, land and people of Vietnam to Danish people.

 

As of November 2010, Denmark had 90 valid projects in Vietnam with total registered investment capital of US$592 million, and the value is forecast to reach US$1 billion in a next few years. To achieve this goal, the two countries are committed to fostering the creation of favourable conditions for Vietnamese and Danish businesses to meet each other, exchange and invest in each other’s markets. At present, 125 Danish companies are doing business in Vietnam. Specifically, 34 projects are joint ventures with a total investment capital of US$357 million; 31 projects are wholly Danish-owned with US$57 million; and five projects are joint stock companies valued US$21 million. Danish investment projects are focused in provinces with many industrial parks and export processing zones like Ba Ria - Vung Tau province (2 projects, US$189 million), Hanoi (25 projects, US$87.8 million) and Ho Chi Minh City (19 projects, US$58 million). In the coming years, Vietnam will continue attracting Danish companies to invest in textiles, food safety, water technology, clean technology, climate change, education, oil and gas industry, construction, airport expansion, production and processing technology, urban architecture, and technology information.

 

In the past 40 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.