Vietnam Market Prospects for Danish Companies with Danish Industry and Dezan Shira’s Radomir Tomovic

Alongside Klaus Gørrissen, Project Director of LEGO Vietnam and Thomas Jakobsen, Managing Director at Indochina Energy Partners, Radomir  Tomovic, Manager, International Business Advisory in Hanoi, recently examined the features of Vietnam’s growing market and the opportunities for Danish investors. This was after providing the keynote in a webinar organized with Danish Industry (DI). The panel was also accompanied by Troels Jakobsen, Commercial Counsellor, Embassy of Denmark in Vietnam. 

The webinar, titled “Made-in-Vietnam: Trend or Hype?” targeted Danish firms already active in the region but undecided about expanding into the Vietnamese market. 

The expert panel discussed the potential in Vietnam’s manufacturing sector as a viable alternative to China’s massive established industrial complex as well as strategic motivations for establishing production in Vietnam. 

For investors, Vietnam as an annex to existing production facilities in China, can provide a lot of benefits. This was discussed in detail, alongside extensive government support and ambitious plans for infrastructure investments, and the abundant low-cost workforce.  

The speakers noted that challenges like the disparity in terms of the availability of skilled workers compared to unskilled workers for industries in the low-cost production segment were actively being tackled with vocational training initiatives. As part of these initiatives, the Danish Embassy is partnering with Vietnamese educational institutions, an effort expected to bear its fruits in the near future.  

“While it is clear that Vietnam is an attractive addition to the supply chain especially for firms already located in China, we would not advise planning the move solely from a cost saving point of view,” Radomir Tomovic advised. “The land border with China, which is a key supplier of raw materials for manufacturers from electronics to garments and textiles, and the proximity to global trade hubs in Shenzhen and Hong Kong SAR are also key benefits that FDIs should make a note of. Furthermore, modern industrial zones in the harbour city of Hai Phong and local government incentives for exporters, are other factors that are of interest to FDIs.” 

With offices in Hanoi, Ho Chi Minh City, and Da Nang and over a dozen offices in China, our experts at Dezan Shira & Associates work together closely to enable clients to find their ideal investment destinations and successfully conduct their operations in both countries.   

If you are a China-based business considering adding Vietnam to your supply chain, please get in touch with us to make the most of your investment endeavours.   

Further Resources 

For further resources you can visit our  Vietnam Briefing, where you can find articles and webinars such as: 

• Advantage Vietnam: Optimizing Supply Chains and Accessing Key ASEAN Markets [Magazine] 
• Investing in Industrial Zones in Vietnam 
• Vietnam’s Trade & Investment With The European Union Following The 2020 EVFTA 
• Manufacturing in Vietnam: Key Labor Concerns and How to Optimize Your HR Strategy