Huge Increase In Danish Investments In Vietnam

IFU, The Industrial Fund for Developing countries, recently signed one more agreement
with a Danish company, to set up the production of alternative energy in
southern Vietnam.
In addition, the Fund is currently negotiating with a further 3 new projects in
Vietnam.

    “We
expect to sign contract with the new business at the end of the year and have
thus invested in 6 new Vietnamese projects this year. It is a large increase
from previous years, where we have helped to start 2-3 Vietnamese projects
annually, “says senior investment adviser Anders Paludan-Müller.
    “The main reasons why Vietnam
has become so popular among Danish companies, we attribute primarily four
issues,” says Anders Paludan-Müller.
    “There
is a significant economic growth in the country, low production costs, a
relatively well-educated and industrious population, and a mentality that has
many similarities with the Danish. In addition, Vietnam
has an economic structure that matches the Danish business culture well with
many small and medium enterprises”
    Vietnam
are among the
countries in the South Asia region with the
lowest costs and wages.
    “Some
of the firms which started outsourcing many years ago started to outsource
their production to for example, Poland or China, has now moved on to Vietnam,
where costs still stay very low,” says Anders Paludan-Müller.
    Another benefit of Danish companies is the ability to start up in Vietnam with
the help of Danidas B2B program.
    “We can not point to one single dominating sector, which particularly is
interested in doing business in Vietnam,”
says Anders Paludan-Müller.
    “We
have instead invested in several different types of firms in such diverse
industries such as tourism, printing, agro-industry, furniture production,
shipping and consultants. Our experience is that they all – in addition to the
low cost of production – is attracted by the Vietnamese working culture and
mentality, which at some points is similar to the Danish, and thus makes it
easier and faster for Danish entrepreneurs to integrate into the life of the
Vietnamese partners than with other Asian business culture. ”
    IFU has 19 ongoing and completed projects in Vietnam. Vietnam is thus one of the
countries that IFU has the most activity in. Nearly 2 / 3 of IFU’s ongoing
projects in Vietnam
are established within the last 2 years.
    IFU offers companies either to participate as a shareholder in a project in Vietnam
or to grant loans to Start-up Company in the country.


http://www.ifu.dk/dk/Menu/Nyheder/Nyheder/Stor + + increase in Danish + + + investments in Vietnam +

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