Vietnam Tightens Danish Ties

Vietnam wants investment from Denmark to build seaports, HIS Global Insight reported on monday. Vietnam’s request for Danish money came out of the meeting between Danish Prime Minister Lars Løkke Rasmussen and Vietnamese Prime Minister Nguyen Tan Dung in Copenhagen last week.
Rasmussen and Dung pledged to boost trade to $1Bn, said the report, with Danish investment in Vietnam to be raised by another $1Bn over the next five years. Dung wants long-term Danish investment to build seaports and develop environmentally friendly technologies, explained Global Insight, which pointed out that the deal cements the nations’ business ties – Denmark recently handed over $40M to boost Vietnam’s development.
Alongside the government, Danish shipping businesses are looking to profit from Vietnam’s growing business muscle. Maersk Line said this month it is starting a service from Vietnam to the US West Coast to exploit the Southeast Asian country’s fast-developing export market.
Before the economic crisis, Vietnam’s economic growth surpassed 7% annually, placing it among the fastest-growing countries in the world, according to Global Insight. Growth fell to a decade low of 3.1% in 1Q09, but the medium-term outlook “looks much brighter”, the Global Insight report commented, explaining that the expansion of Saigon Port will significantly contribute to increasing trade with the US.
Container trade exports from Vietnam to the US increased consistently in 2005-8, before dropping this summer, Global Insight added.

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