Vietnam-Denmark Relations: Trade, Investment, and Business Opportunities

April 11, 2025
By Arendse Huld
Vietnam Briefing

In recent years, Vietnam and Denmark have significantly strengthened their diplomatic ties, leading to increased collaboration across various sectors. This article explores the current landscape of Vietnam-Denmark relations, focusing on trade, investment, and the potential for business opportunities, particularly in renewable energy and sustainability.

A Growing Partnership

Vietnam and Denmark have enjoyed a strong diplomatic relationship since formal ties were established in 1971. The relationship has evolved, with cooperation deepening in political, economic, cultural, and environmental areas. A pivotal moment occurred in 2000 when Vietnam established an embassy in Denmark, facilitating more frequent high-level exchanges between the two countries.

Over the years, numerous official visits—by prime ministers, ministers, and parliamentary delegations—have fostered trust and broadened the scope of collaboration. A significant milestone came in 2011 when Denmark's Crown Prince visited Vietnam to celebrate the 40th anniversary of their diplomatic relations. This visit culminated in a Strategic Partnership focused on climate change, green growth, and energy cooperation.

The relationship further solidified with the signing of the Comprehensive Partnership Agreement (CPA) in 2013. This agreement enhanced long-term cooperation in key areas, including education, health, food safety, and sustainable development.

Enhanced Trade and Economic Relations

Throughout the 2010s, trade and economic relations between Vietnam and Denmark intensified. High-level meetings and business forums have encouraged Danish companies to explore the growing Vietnamese market. Initiatives such as the Danish Growth Council for Vietnam exemplify the collaborative spirit with a focus on specific sectors like agriculture and green technology.

Denmark's expertise in sustainability and clean energy aligns with Vietnam's development priorities, especially as the Southeast Asian nation works to modernize its economy. This alignment has positioned Denmark as a valuable partner in Vietnam's transition to more sustainable growth.

Launch of the Green Strategic Partnership

In a historic development, Vietnam and Denmark officially launched a Green Strategic Partnership (GSP) on November 1st, 2023. This initiative formalizes and expands the existing cooperation on climate action and promotes green economic growth. The GSP prioritizes political dialogue, emphasizes investment in renewable energy and sustainable trade, and reinforces joint efforts to meet climate goals set under the Paris Agreement and the UN Sustainable Development Goals.

The launch of the GSP marks a new chapter in the bilateral relationship, indicating a commitment to collaborative efforts in addressing global environmental challenges. The partnership presents excellent opportunities for Danish investors to engage with Vietnam's expanding market, particularly within sectors such as renewable energy, green technology, and sustainable development.

Potential Industries for Investment

As Vietnam continues to modernize its economy, various industries are emerging as particularly attractive for Danish investors. These include:

  1. Renewable Energy: Vietnam is actively seeking to enhance its renewable energy capacity. Danish firms, with their advanced technology and expertise in wind and solar energy, can play a significant role in this sector.

  2. Green Technology: Innovations in waste management, water treatment, and energy efficiency are crucial for Vietnam's sustainable development goals. Danish companies are well-positioned to introduce their technologies and best practices.

  3. Sustainable Agriculture: With Vietnam's agricultural sector striving for modernization, there are opportunities for Danish investment in sustainable farming practices and agricultural technology.

  4. Education and Training: As Vietnam prioritizes education and skills development, collaboration in educational initiatives can facilitate knowledge exchange and workforce development, benefiting both nations.

Conclusion

The strengthened Vietnam-Denmark relationship reflects a mutual commitment to addressing global challenges and pursuing sustainable development. The Green Strategic Partnership not only underscores this alliance but also unlocks significant opportunities for Danish businesses to invest in Vietnam's evolving market. As both countries look toward a sustainable future, their partnership holds considerable promise for enhancing trade and investment, fostering innovation, and achieving shared goals in renewable energy and sustainability.