Danish companies are expanding their footprint in Vietnam as the nation quickly moves up the value-added ladder and establishes itself as a major center for the production of technology.
Denmark has emerged as a key investor in Vietnam this year thanks to the Danish toy giant LEGO Group. Specifically, the company committed to investing USD 1 billion to construct its factory in Vietnam – which is intended to be the company’s first carbon-neutral plant.
The construction of the 160,000 square meter property will take place in the Binh Duong Province, around 50 kilometers from Ho Chi Minh City, according to a contract inked last month with a local builder. The groundbreaking ceremony is anticipated to take place in the fourth quarter of 2022.
Trade and investment from Europe have exploded since the EU-Vietnam Free Trade Agreement (EVFTA) went into effect in August 2020. In 2021, total trade between the EU and Vietnam increased by 14.8% to USD 63.6 billion.
With IT giants Apple and Samsung recently announcing an expansion of their operations there, Vietnam is quickly emerging as a critical hub for high-end manufacturing. In addition, the country is spending heavily on renewable energy in an effort to achieve net-zero carbon emissions by 2050.
Orsted, the largest energy company in Denmark, has agreed to invest up to USD 13.6 billion in a massive 3.9-gigawatt (GW) wind farm zone in the Vietnamese provinces of Binh Thuan and Ninh Thuan. A firm spokesman disclosed that the first investments should be operational by 2030.