Danish firms increase green investments in Vietnam

At a press conference on November 3, after the establishment of the Green Strategic Partnership (GSP), Danish Ambassador to Vietnam Nicolai Prytz spoke about the positive relationship and cooperation between the two countries.

Since 2015, the two countries have shifted away from a donor-recipient relationship towards a partnership on an equal footing, with extensive cooperation across all sectors, including political dialogue, green growth, energy, agriculture, food, healthcare, and culture, with a primary focus on capacity-building in these areas.

"Vietnam has experienced significant and impressive sociometric growth over the years, which also meant that, eventually, it no longer had to depend on official development assistance from nations like Denmark," the ambassador said.

"That didn't mean that our relationship or cooperation came to an end. We have entered a comprehensive partnership agreement, based on sector-to-sector cooperation. Furthermore, the establishment of a GSP has opened up a new chapter in their 50- year relationship and will contribute to assisting Vietnam to meet its green transition ambitions."

Vietnam's commitments to net-zero by 2050, its active engagement in the Just Energy Transition Partnership (JETP), and its own Power Development Plan VIII are courageous. As a good friend and partner, Denmark would like to be here to assist the nation in ensuring these engagements are successful.

Vietnam is one of the five countries with which Denmark has established a GSP, along with India, Indonesia, South Africa, and South Korea. This reflects a very high commitment from the Danish government.

The partnership provides a robust framework for Denmark to assist Vietnam in developing an economy with climate resilience and low carbon emissions, as well as promoting a circular economy. It will focus on addressing issues of national and global significance, and steering efforts towards greater adoption of green technology and sustainable practices.

"The GSP will be carried out at both political and economic levels. At the political level, the two governments will continue their dialogues on green growth and climate change issues. They will try to find common views and commitments to be delivered at the upcoming COP28 summit in the UAE," the ambassador said.

In addition, the two countries will continue to closely cooperate within the JETP.

Of this, energy is still one of the most significant cooperation sectors between the two countries. Sharissa Devina Funk, counsellor at Energy Sector, said that since 2013, Vietnam and Denmark have been in a long-term partnership to strengthen the energy transition. The Danish Energy Agency cooperates with the Vietnamese Ministry of Industry and Trade through the joint Danish-Vietnamese Energy Partnership Program, which is going to start its third phase soon.

"One of the main outcomes of this cooperation is to build a long-term energy plan, including models and scenarios for energy development here. The two countries have worked closely to provide Vietnam's energy outlook report every two years, providing scenarios, contexts, and solutions to help it reach net-zero by 2050," she said.

Denmark has also shared a lot of experience and practices related to integrating more renewable energy into the national power grid.

"In Denmark, we can use wind power for the whole day, sometimes without the contribution of any other forms of energy. We have more than 30 years of experience in developing offshore wind power," Funk added.

Seeing promising land with incredible sociometric growth in Vietnam, many Danish investors' attention has been caught. Today there are 135 Denmark's companies operating in the country, and 155 ventures have taken place over the years.

Troels Jakobsen, commercial counsellor said, "It is quite remarkable for our country, with a population of only 5.8 million, to be one of the largest European investors in Vietnam."

"Lego's $1-billion project in Binh Duong province is a large recent venture with a commitment to being carbon-neutral. Green investment will also become the general trend for foreign companies and investors in Vietnam, with a commitment to using green energy and reducing emissions.”

Danish businesses are also interested in many other fields in this country, such as both offshore and onshore wind power. Two giant wind power corporations from Denmark are employing Vietnamese companies and suppliers to manufacture parts for their projects worth hundreds or billions of dollars.

"If wind power development is strong enough, Vietnam can become a regional hub, creating many jobs and generating a lot of more income and creating numerous opportunities for local suppliers and manufacturers," Jakobsen said. "We hope that the GSP statement will be the foundation to call for more Danish companies to come to Vietnam."

The relations between Vietnam and Denmark have been further deepened since the two countries established their diplomatic relations in 1971.

Vietnam's Doosan Vina and Denmark's Ørsted have signed a memorandum of understanding (MoU) to develop the offshore wind power supply chain in Vietnam.

Danish jewellry maker Pandora plans to build a factory in the southern province of Binh Duong in the first quarter of 2024.

Vietnamese Prime Minister Pham Minh Chinh and Danish Prime Minister Mette Frederiksen co-chaired a virtual ceremony on November 1, 2023, to jointly declare the establishment of a Green Strategic Partnership between the two governments.