Denmark-Vietnam: Partnership for Development

Business opportunities in Vietnam are wide open for foreign investors, including those from Denmark. The Danish Chamber of Commerce in Vietnam has actively promoted business cooperation between the two countries. The Vietnam Business Forum interviewed Mr Jeppe Solmer, Commercial Counselor of Denmark to Vietnam. Que Chi reports.

 

Firstly, I wish to highlight that bilateral cooperation has been promoted as a result of the investment and cooperation between Danish and Vietnamese businesses.. Presently, there are 130 Danish businesses operating with representative offices in Vietnam. The two-way trade value has keep increasing year-on-year between 2002-2012, from US$140 million in 2002 to US$208 million in 2011 or 56.6 percent higher than that of 2010. Danish exports to Vietnam increased 9.1 percent a year, while Vietnamese exports to Denmark increased 5 percent a year. We do not yet have the figures for 2012, but the increase continues with Danish exports of electrical equipment, chemicals, industrial equipment and machines, and Vietnamese exports of aqua-products, handicraft and ceramic products, garments, etc. Denmark is one of the biggest donors of ODA for Vietnamese aquaculture which maintained an 18 percent growth rate in Vietnamese exports. We are also shifting from ODA to bilateral trade to promote investment and trade in the interests of the two countries.

 

With WTO membership, Vietnam has an improved business environment. However, to increase competitiveness and attract more foreign investors including those from Denmark, in addition to the legal framework, Vietnam should make greater efforts in administrative reform and combating bureaucracy, the true obstacles for foreign investors in Vietnam.

 

For the same purpose, we are assisting Vietnam in judicial and legal reform, intensifying parliamentary competence, administrative reform and combating corruption.

The second area is education, as education continues to be the key to further development. Foreign investors need a skilled workforce in high technology and often have difficulties in looking for the required human resources. To this end, the education network must be upgraded. Denmark is introducing some schools and training centres to assist their Vietnamese counterparts. In November this year, some Danish experts will visit and work with the Vietnam Ministry of Education and Training on promoting education in business activities.

 

In addition, Vietnam should continue the development of infrastructure: roads, airports, seaports, telecommunications, etc. The high economic growth rates must be balanced with the improvement of technical and social infrastructure so as to ensure an attractive environment for foreign investors.

 

In fact, a cultural gap remains as the first barrier for business activities and 50 percent of the difficulties for foreign investments are often from unknown local conditions. Foreign investors will try to overcome those difficulties. And as a matter of fact, 130 Danish businesses are operating successfully in Vietnam which is a good sign, showing that Vietnam is an attractive destination for business activities. Meanwhile, there are also other challenges such as the legal framework, administrative formalities, etc. Danish businesses highly value the Vietnamese workforce and their industriousness and efficiency could be promoted by further training to meet higher demand of business activities.

 

An advantage that Danish businesses can provide Vietnamese partners is the training of human resources. Danish business management and culture are different, encouraging the independence and creativeness of individuals. Once the working environment of the workers is improved, their efficiency will increase and social development more sustainable. Danish businesses also highly respect social responsibility. Business activities are diversified in areas and scales. Small and medium sized enterprises maintain a high efficiency and stable development. With those advantages, I believe that Danish businesses can share with Vietnamese partners knowledge, high technology and efficiency for sustainable development.

 

In future, how will Denmark promote trade and investment for green growth in Vietnam?

Denmark is one of the leading countries in the food processing industry. Meanwhile, Vietnam plans to develop food processing and pork epxorts. Therefore, we will promote cooperation in this field. Last October, together with the Ministry of Agriculture and Rural Development, we sponsored a seminar on pig rearing. We will also promote bilateral cooperation in areas such as garments, clean water supply, oil and gas.

 

Regarding green growth, Denmark is engaging in two programmes of climate change and efficient energy in Vietnam. Denmark can cooperate and share their experience with Vietnam on turning waste materials into fuel and electricity. In particular, Denmark has the technology for turning rice straw into thermal power. It can save Vietnam from using agricultural products for the same purpose, affecting the food security programme. Denmark is also introducing green city planning and energy saving buildings in Hanoi and Ho Chi Minh City.

 

I do hope that Danish benefits and Vietnamese needs will create more opportunities bringing bilateral trade and investment to a new height.