Denmark investors seek to catch up with others in Vietnam

By Tuong Thuy
Thu, September 15, 2022 | 9:38 am GTM+7

Danish companies are rushing to make their presence felt in Vietnam as the Southeast Asian nation emerges as a new manufacturing hub.

An Orsted-built offshore wind farm. Photo courtesy of the Danish company.

An Orsted-built offshore wind farm. Photo courtesy of the Danish company.

A delegation of more than 30 major Danish companies will accompany Crown Prince Frederik and Crown Princess Mary on their November visit to Vietnam, also to mark 50 years since the two countries established diplomatic relations.

During the visit scheduled on November 1-2, the royal couple and business delegation will join seminars and meetings on green transition together with Vietnamese government and business leaders.

Driven by Vietnam’s carbon neutrality goal

Denmark’s largest investment project in Vietnam to date is Lego’s 44-hectare modern manufacturing facility in the southern province of Binh Duong.

The group announced on September 6 that it would break ground on the $1 billion green production site in Vietnam Singapore Industrial Park (VSIP) III this November.

The giant toymaker has started its program of planting 50,000 trees over three years supported by VSIP Co. Ltd. in locations close to the new site. The 50,000 trees are being planted to compensate for about 25,000 trees that will be removed during the construction of the new factory.

Lego will also invest in a solar farm to provide energy to the factory and explore many other initiatives that will make the new site “a global lighthouse for sustainable operations,” as described by Preben Elnef, vice president and program lead for Lego Group in Vietnam.

“A key reason for locating our new factory in Vietnam was the strong support from the Vietnamese government when it comes to our environmental sustainability agenda, and we look forward to their continued support during the construction phase,” he said.

Denmark has emerged as a major investor in Vietnam this year, thanks in large part to the new Lego production site - the group’s first carbon-neutral plant worldwide.

The country became the third largest investor in Vietnam in terms of registered capital in the first eight months of the year, after Singapore and South Korea.

In another significant case, Denmark’s largest energy firm, Orsted, and Vietnamese Hanoi-based cross-industry corporation T&T launched in September 2021 a wind energy development partnership in Vietnam, with the collaboration investment periods planned for 20 years.

“With more than 3,200 kilometers of coastline and high consistent wind speeds, Vietnam has some of the best conditions for developing offshore wind in Asia,” Orsted stated while announcing this cooperation.

“We believe that offshore wind is one of the best ways for Vietnam to meet its rapidly growing power demand as this is a utility-scale, reliable, and domestic power source which, if deployed at large scale and with the right framework, can be competitive with coal and gas-fired power stations,” Matthias Bausenwein, president of Orsted Asia Pacific, said in that partnership announcement.

The partnership estimates a total investment of up to $30 billion for the duo’s ambition of almost 10 gigawatts from their offshore wind projects in Vietnam, which targets carbon neutrality by 2050.

This August, Orsted signed a memorandum of understanding with Petrovietnam Technical Services Corporation Mechanical & Construction to collaborate on offshore wind projects.

The duo has recently proposed two offshore wind projects of 5 GW in capacity off the coast of Ninh Thuan, and a 3.9GW offshore wind farm in the northern port city of Hai Phong.

Bilateral efforts

Vietnam and Denmark have a lot of potential to expand and deepen their cooperation in the time ahead, especially in green growth, Danish State Secretary for Trade and Global Sustainability Lina Hansen told a Vietnam-Denmark business forum in Copenhagen on September 5.

She said the two countries' bilateral comprehensive partnership has created a foundation for their cooperation in areas like energy, health care, agriculture, and education.

Denmark’s government will earmark at least $1 billion to developing countries, including Vietnam, to help them respond to climate change from 2023, according to Hansen.

Denmark hopes that “the two countries will establish a green strategic partnership to facilitate collaboration between their governments, peoples and businesses in sustainable development,” she said.

In early August, the Vietnamese Embassy in Copenhagen published a Vietnamese-language handbook for businesses about the Scandinavian market. On August 17-19, a Danish agri-food delegation including 13 companies visited Vietnam to boost sectoral ties. The visit was seen as a shift of investment focus among Danish businesses.

Comments (0)
  • Read More
Three military airports may include civilian operations: Deputy PM

Three military airports may include civilian operations: Deputy PM

The government is considering turning three military airports in Ninh Thuan, Dong Nai and Hanoi into military-civil airports.

Infrastructure - Sun, September 25, 2022 | 8:42 pm GTM+7

Heineken opens Southeast Asia’s biggest brewery in southern Vietnam

Heineken opens Southeast Asia’s biggest brewery in southern Vietnam

Heineken Vietnam inaugurated an expanded brewery in Ba Ria-Vung Tau province Saturday, saying it was the the biggest in Southeast Asia and used 100% renewable energy.

Industries - Sun, September 25, 2022 | 8:12 pm GTM+7

Agriculture major Hoang Anh Gia Lai suspends $72 mln share issuance

Agriculture major Hoang Anh Gia Lai suspends $72 mln share issuance

Hoang Anh Gia Lai JSC (HAGL) has suspended registration documents for a private placement of shares worth VND1,700 billion ($71.7 million) that it had submitted to the State Securities Commission.

Companies - Sun, September 25, 2022 | 5:42 pm GTM+7

Three Vietnamese carriers among world's top 100 airlines

Three Vietnamese carriers among world's top 100 airlines

Vietnam Airlines, Bamboo Airways and Vietjet Air have been honored with titles in different categories by UK-based air transport rating organization Skytrax.

Travel - Sun, September 25, 2022 | 3:53 pm GTM+7

Northern, central provinces prepare for supertyphoon Noru arrival

Northern, central provinces prepare for supertyphoon Noru arrival

Northern and central provinces have been told to prepare for supertyphoon Noru, which is heading in a northwest direction with wind speeds of up to 183 km per hour.

Society - Sun, September 25, 2022 | 3:35 pm GTM+7

Expensive HCMC apartments in large supply

Expensive HCMC apartments in large supply

More and more luxury and high-end apartment projects have appeared in Ho Chi Minh City, Vietnam’s southern economic hub, with prices exceeding VND200 million ($8,400) per square meter in some cases.

Real Estate - Sun, September 25, 2022 | 10:12 am GTM+7

HCMC anti-smuggling cop in the dock for smuggling

HCMC anti-smuggling cop in the dock for smuggling

Hoang Duy Tien faces prosecution for overseeing the smuggling of goods worth VND211 billion ($8.9 million) when he was an officer with the HCMC economic police division.

Society - Sun, September 25, 2022 | 8:34 am GTM+7

Long Thanh Airport police station opens on construction site

Long Thanh Airport police station opens on construction site

A police station has been set up at the Long Thanh International Airport construction site in Dong Nai province to ensure security and traffic safety.

Society - Sun, September 25, 2022 | 8:18 am GTM+7

Work begins on HCMC Ring Road 3 section

Work begins on HCMC Ring Road 3 section

Construction began Saturday on an 8.7-kilometer section of Ho Chi Minh City's Ring Road 3 that is set for completion in three years.

Infrastructure - Sat, September 24, 2022 | 9:07 pm GTM+7

VN-Index loses 31 points in week of US interest rate hike

VN-Index loses 31 points in week of US interest rate hike

Vietnam’s benchmark VN-Index decreased to the area close to 1,200 points at the end of this week, down 31 points following the U.S. Federal Reserve’s mid-week interest rate hike of 75 percentage points.

Finance - Sat, September 24, 2022 | 5:02 pm GTM+7

Four Phu Quoc Island hotels win best titles in Asia

Four Phu Quoc Island hotels win best titles in Asia

Four hotels on Phu Quoc Island, namely Novotel, Pullman, New World and JW Marriott, were honored Thursday at Haute Grandeur Global Hotel Awards with titles in different categories.

Travel - Sat, September 24, 2022 | 4:18 pm GTM+7

European training for Vietnam football talents

European training for Vietnam football talents

Phat Dat Real Estate Development Corporation has become a key sponsor of a strategic cooperation in developing young football talents in Vietnam.

Companies - Sat, September 24, 2022 | 3:44 pm GTM+7

Deposit rates surge after central bank raises rate ceiling

Deposit rates surge after central bank raises rate ceiling

A slew of small- and medium-size commercial banks have hiked their deposit interest rates by 0.3-1 percentage points after the State Bank of Vietnam raised the deposit rate ceiling Friday.

Banking - Sat, September 24, 2022 | 3:10 pm GTM+7

Remove bottlenecks, facilitate FDI flows among Mekong Subregion: experts

Remove bottlenecks, facilitate FDI flows among Mekong Subregion: experts

Greater awareness of the opportunities and required policy support are key to expanding the scale, quality and speed of foreign investment in the Mekong Subregion, experts say.

Economy - Sat, September 24, 2022 | 1:24 pm GTM+7

Vingroup gets green light for second battery factory

Vingroup gets green light for second battery factory

The nation’s largest private conglomerate, Vingroup, has received in-principle approval to build its second auto battery plant in the same economic zone as the first in central Vietnam.

Industries - Sat, September 24, 2022 | 11:59 am GTM+7

Q4 shopping demand to electrify goods storage space

Q4 shopping demand to electrify goods storage space

Stiffer competition among online shopping sites in Vietnam during the last three months of the year will drive up inner-city warehouse occupancy rates, according to Cushman & Wakefield.

Real Estate - Sat, September 24, 2022 | 10:46 am GTM+7