COUNTRY PROFILES
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COUNTRY PROFILE
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Denmark |
Print article The interior of the “Black Diamond” Copenhagen |
The bottom line for American investors is: Denmark Works, says Stephen Brugger, Executive Director, American Chamber of Commerce in Denmark. US companies establishing or expanding operations in Northern Europe choose Denmark for many reasons. First, there’s a healthy investment and trade relationship between the two countries.
Americans invest more (about $19 billion) in Denmark than any other foreigners, accounting for more than one-third of all foreign investment here. There are more than 350 American companies or wholly owned subsidiaries in Denmark in a range of sectors, including business services, healthcare and pharmaceuticals, IT, manufacturing and automation, travel and tourism, banking, finance, and insurance.
Four percent of US global exports are to Denmark, and 6% of worldwide imports to the US come from Denmark. At last count, Danes imported $1.82 billion in American products; industrial machinery and capital equipment, software, aircraft, and scientific instruments topped the list. Americans bought $3.97 billion in Danish products including medicines and pharmaceuticals, meats, machinery, and many others.
A competitive economy
Second, there’s the Danish economy, which is mature and stable, with low interest and inflation rates. The nation has an exceptional infrastructure, a competitive corporate tax rate (28%), a secure financial sector, and a multilingual workforce. The quality of life here makes it relatively easy to station key foreign managers.
Those foreign managers arrive in a country with a GDP per capita of about $33,750; and an expatriate tax rate for corporation-employed researchers and managers of 25% for the first three years of their assignment. Denmark has one of the world’s most competitive economies, boosted by its legal system, its qualified workforce, and its high levels of technology and innovation, according to the World Economic Forum.
The doorway to developing markets
Then, there’s the location: Denmark is ideally situated for investors looking to Scandinavia, the Nordics, and Northern Europe. Denmark is also the logistical doorway to the developing markets of the Baltics and Russia. As such, Denmark is an ideal regional marketing and distribution center for an enlarged EU. These are just a few reasons why Denmark works for American enterprises. Here, the general managers of two such companies explain why they chose to invest in Denmark.
An ideal match fuels growth
Guy Auger, General Manager, Dell Denmark says: “Dell came to Denmark in 1996 with six employees. Now there are nearly 600 working in Dell’s service hub, the Copenhagen area, where our company opened a new sales centre in the fall of 2005.
Flexible labour laws head the short list of reasons why Denmark is right for Dell. Being able to adjust workforces to meet markets is a big asset for our sales operation. Denmark’s social security system, unemployment and health insurance, and collective agreements make costs transparent going in, and keep them competitive throughout. Copenhagen’s quality of life works very well for sales staff from throughout the Nordics: keeping qualified people from our various markets increases efficiency. Denmark has that competitive edge.”
An attractive business environment
Paul Coleman, General Manager, Biogen Idec, and Chairman, American Chamber of Commerce in Denmark says: “Biogen Idec is building a manufacturing facility in Hillerød, Denmark, slated to open in 2007. The plant will initially employ 200 people and will be the company’s first production facility outside the United States.
Biogen Idec chose Denmark because we saw evidence of a positive business environment, and a skilled workforce. We also encountered a proactive government and private agencies that sought fair solutions and a better commercial environment for all concerned. In addition, the country’s outstanding air, rail, sea, and road infrastructure provides a clearly defined access process for people, products, and operations. We were also attracted by the presence of the Danish–Swedish Medicon Valley cluster, a great, worldclass grouping of pharmaceutical and biotech science enterprises that raises the bar for everyone operating in the region.
Denmark is a good country to do business, but there are certain business formulas that work best. To help find those formulas, companies considering Denmark should tap into the American Chamber of Commerce network in addition to the official governmental network. AmCham has a very strong voice of experience that is underutilised.”
Facts in brief
Denmark’s location is Northern Europe, bordering the Baltic Sea and the North Sea, on a peninsula north of Germany (Jutland); also includes two major islands (Sjaelland and Fyn). Controls Danish Straits (Skagerrak and Kattegat) linking Baltic and North Seas; about one-quarter of the population lives in greater Copenhagen
Its climate is temperate: humid and overcast; mild, windy winters and cool summers
Natural resources include petroleum, natural gas, fish, salt, limestone, chalk, stone, gravel and sand
Agricultural products are barley, wheat, potatoes, sugar beets; pork, dairy products; fish
Industries include iron, steel, nonferrous metals, chemicals, food processing, machinery and transportation equipment, textiles and clothing, electronics, construction, furniture and other wood products, shipbuilding and refurbishment, windmills, pharmaceuticals, medical equipment
Diplomatic representation in the US — Chief of mission: Ambassador Friis Petersen
Diplomatic representation from the US — Chief of mission: Ambassador James P Cain
Contact Information
American Chamber of
Commerce in Denmark
(AmCham Denmark)
Christians Brygge 28, 1. th.
DK-1559 Copenhagen V
Tel: +45 33 932 932
Fax: +45 33 130 517
E-mail: mail@amcham.dk
Website: www.amcham.dk
Useful websites
| www.copcap.com | Copenhagen Capacity |
| www.investindk.com | Invest in Denmark |
| www.usembassy.dk | US Embassy |
| www.buyusa.gov/denmark/en | US Commercial Service in Denmark |
| www.export.gov | US Government Export portal |