Denmark Capital Copenhagen Currency Danish krone (DKK) Language Danish Population 5.45 million EU status member GDP 2006 $256.3 billion Employment 95.6% Exports $93.93 billion f.o.b. (2006 est.) Imports $89.32 billion f.o.b. (2006 est.)

Setting up business Number of days to start business 5 Cost (% of income per capita) 0% Nonwage labor cost (% of salary) 0.7% Total tax rate (% profits) 31.5%

 

 

Denmark

Copenhagen: center of a thriving economy

In the fight for foreign investment, Denmark is an overachiever and intends to stay that way. The reasons are clear for American companies setting up shop or expanding into Northern Europe.

Denmark has a high standard of living; a stable currency; balanced national budgets; robust global trade; a flexible, able, and multilingual workforce; a competitive corporate tax rate and a freeze on tax increases; and an infrastructure that provides excellent access for operations, products and people. Consumer confidence is high, unemployment is low, and technology and innovation in a number of sectors are outstanding by global measures.

A world-class economy

According to the World Economic Forum, Denmark’s economy is one of the world’s most competitive; and this economy has been praised by the Organization for Economic Co-Operation and Development and the International Monetary Fund. The Economist last year projected Denmark to be nothing less than the world’s best business environment in 2006 to 2010.

Such rankings are that much more impressive given the small relative size of Denmark’s economy. This nation disproportionately achieves in an increasingly competitive global market filled with larger economic powerhouses. Denmark does so with a secure financial market, proficient trading, a healthy balance between the state and the market economy, and flexible hiring laws, among other things.

Furthermore, changes occurring throughout Europe, and the growth of the EU in particular, have only enhanced Denmark’s already strong position. The developing markets in Russia and the Baltic region are nearby, underscoring Denmark’s status as being the ideal distribution and marketing center for that region, as well as Scandinavia, the Nordics, and Northern Europe.

Given the wide diversity of the sectors they represent, AmCham’s 270 member companies cite many reasons, in addition to those just mentioned, for locating in Denmark. Many are attracted by the ability to adjust workforces to meet markets; or the cost transparency provided by Danish collective agreements, health and unemployment insurance; or the fact that payroll taxes fund welfare, limiting employers’ costs considerably.

Building on strenght

We build on Denmark’s strengths at AmCham Denmark. Accordingly, a key part of AmCham’s work is to foster the strongest possible investment and trading relationship between the United States and Denmark. That relationship is already strong: American investment in Denmark stands at about $20 billion, representing about a third of the total foreign investment here, and is more than that invested by any other foreigners.

The more than 350 American subsidiaries here are diverse, operating in sectors including healthcare and pharmaceuticals, IT, manufacturing and industrial automation, travel and tourism, banking, finance and insurance. Danes import 4% of the global exports of the United States – that equals roughly $2 billion worth of American goods – and Americans buy 6% of what Denmark produces for the world market.

Strong relationships

And this relationship is not just about trade. Denmark’s steadfast diplomatic partnership with the United States exemplifies a uniquely stable and strong alliance.

Given the importance of our nations’ trading relationship and the growth of our membership, the Chamber has built its reputation as the leading authority on, and the voice of, foreign investment here. Our effectiveness is based in part on a strong working relationship with the governmental ministries and our able diplomatic corps. Our member companies share knowledge with Danish lawmakers and regulators because we share the goals of building upon this nation’s considerable strengths, helping Denmark in its fight for foreign investments.

Our activism cuts across sectors and policy areas. In 2006 AmCham released its Foreign Investors’ Agenda, a comprehensive set of policy recommendations. Our busy schedule of events in 2007 is carrying that agenda forward by bringing together government officials, leading executives and potential investors to explore the key business topics. The Chamber is also showcasing the achievements of our member companies. In 2005 we established the AmCham Denmark Entrepreneurship Award, which recognizes outstanding examples of enterprises taking bold risks and making a positive difference. AmChams need to recognize outstanding models of vision and performance, both among our memberships and in our economies.

Foreign companies employ about 230,000 taxpayers in Denmark; these companies include American organizations, which directly or indirectly employ about 150,000 here. Our members are among them, and are a key part of this economy and its future. We share with the Danish private sector and the government the belief that Denmark can never rest on its laurels. That is why we are excited about being a part of the process of creating the best conditions possible for robust competition, innovation and entrepreneurship. We are also excited about building upon all the strengths that American enterprise finds in Denmark, which is, indeed, an adept overachiever in the fight for foreign investment.

 

Contact Information

American Chamber of
Commerce in Denmark
Christians Brygge 28
DK-1559 CopenhagenV
Denmark
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

 

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