Successful investment from Denmark

Among Nordic countries investing in Vietnam, Denmark stands out as the leader in both investment scale and long-term commitment. Danish investments in Vietnam over recent years have steadily expanded, reflecting the strong interest of Danish enterprises in the Vietnamese market. Denmark is currently not only one of Vietnam’s key trade and investment partners but also has a vital role to play in supporting the country’s sustainable development goals and climate change adaptation efforts.

As of the end of February, total Danish investment capital in Vietnam had exceeded $2.02 billion, in 174 projects in all points of the country, according to figures from the Ministry of Finance. Denmark focuses on key investment sectors in Vietnam, such as renewable energy, industrial manufacturing, consumer goods, and logistics. Beyond driving economic growth, Danish investments are recognized for bringing cutting-edge technology, sustainable production standards, and long-term strategic cooperation opportunities, further enhancing Vietnam’s position on the global investment map.

Expanding ties

Denmark currently ranks 21st among all countries and territories investing in Vietnam and leads among Nordic countries. Vietnam has emerged as an attractive destination for Danish businesses, drawing significant interest from major corporations such as LEGO, Maersk, Pandora, and Carlsberg. These companies have launched large-scale, high-quality projects in the country, underscoring the growing confidence of Danish investors in Vietnam’s market potential.

One standout project from Denmark is the LEGO Group’s $1.3 billion toy manufacturing plant in southern Binh Duong province, set to be officially opened this month. It is LEGO’s first factory in the country and its first carbon-neutral facility worldwide, marking a major milestone in its global sustainability strategy.

Similarly, Pandora, one of the world’s largest jewelry brands, has invested $150 million to build a factory in Binh Duong that is expected to begin operations in 2026 and further expand Pandora’s presence in Vietnam while reinforcing Denmark’s growing investment in the country. These initiatives by leading Danish companies not only highlight Vietnam’s attractive investment environment but also position the country as a key destination for a wave of investment from Denmark and international businesses in general.

Mr. Michael Aastrup Jensen, Chairman of the Foreign Policy Committee in the Danish Parliament, affirmed that Vietnam and Denmark have a sustainable and strong partnership based on mutual respect and a shared commitment to multilateral cooperation and adherence to international law. “The two countries share common interests in ensuring peace and freedom of navigation, as well as promoting sustainable development in key sectors,” he emphasized.

Alongside investment, trade activities between Vietnam and Denmark have also seen encouraging results in recent times. According to data from the General Department of Vietnam Customs, total trade turnover between the two countries reached $676.34 million in 2024, an increase of 20.3 per cent year-on-year. This growth underscores the strengthening economic ties and expanding opportunities for cooperation across various sectors, marking a successful year for bilateral trade.

Mr. Jensen believes that one of the key factors sustaining the growth of both investment and trade between Denmark and Vietnam is the robust and multi-faceted cooperative relationship that has developed between the two countries over the years. This strong partnership spans a range of sectors, with a particular emphasis on sustainability and innovation. Since the establishment of the Green Strategic Partnership (GSP) between Vietnam and Denmark in 2023, there has been a marked increase in renewable energy projects and other initiatives aligned with Denmark’s green criteria in Vietnam.

Advancing energy transition

Vietnam has set a goal of achieving net-zero emissions by 2050 to mitigate the negative impacts of climate change, protect the environment, and promote sustainable development. To reach this goal, it must transition to clean energy sources, improve green infrastructure, and develop environmentally-friendly industries.

Meanwhile, Denmark is recognized as one of the leading countries in transitioning its economy from fossil fuel-based activities to renewable energy technologies, sustainable transportation, and green production processes. Therefore, cooperation with Denmark serves as a valuable foundation, helping Vietnam realize its vision of a green, equitable, and sustainable economy while also creating opportunities for knowledge exchange, technology transfer, and the development of renewable energy initiatives.

According to Deputy Minister of Industry and Trade Nguyen Hoang Long, Denmark has supported Vietnam through numerous renewable energy projects, providing advanced technologies, human resources training, and policy consultations on energy transition. This cooperation has helped Vietnamese businesses reduce costs, enhance production efficiency, and minimize environmental impacts. “Denmark is one of the most important partners in Vietnam’s energy transition process,” Deputy Minister Long emphasized.

A prime example of their cooperation in energy transition is the Vietnam-Denmark Energy Partnership Program (DEPP3) for the 2020-2025 period. Established between the governments of Vietnam and Denmark, the initiative receives official development assistance (ODA) funding from Denmark totaling $8.96 million and aims to promote energy transition efforts, reduce greenhouse gas emissions, and enhance energy efficiency in Vietnam’s industrial sectors.

Mr. Jorgen Hvid, Long-term Advisor with DEPP3, said the program is a key element of Denmark’s broader long-term strategy to collaborate with developing countries. Through initiatives like DEPP3, Denmark seeks to accelerate Vietnam’s energy transition, fostering a shift towards cleaner and more sustainable energy systems. “This cooperation not only brings technical benefits but also creates opportunities for Vietnam to develop effective energy policies,” Mr. Hvid added.

Vietnam is actively advancing its economic development, with a strong focus on building a green economy. In this context, deepening cooperation with international partners, particularly in the energy sector, is crucial. With its commitment to achieving net-zero emissions by 2050, Vietnam must prioritize sustainable and clean energy solutions. This transition presents both challenges and opportunities, allowing Vietnam to demonstrate its dedication to sustainable development.

Deputy Minister Long also emphasized that Vietnam is entering a new era of robust growth and development. With a target of posting double-digit economic growth from 2026 onwards, the energy sector will play a key role in driving progress. Strengthening partnerships with international counterparts, especially Denmark, in areas such as renewable energy and energy transition will be critical. “In the years to come, Vietnam and Denmark should deepen their collaboration on energy transition and increase the share of renewable energy in Vietnam’s national energy mix,” the Deputy Minister believes.