Foreign Direct Investment in Denmark
FDI in Figures
In recent years, foreign direct investment stock in Denmark has increased sharply. Their influx temporarily slowed down as an effect of the global economic crisis, however it has increased again and this trend should continue. The country’s strengths include: highly-skilled and multilingual workforce, flexible labor market, ultra-modern infrastructure (telecommunications, transport) and a tax regime advantageous for business.
Country Comparison For the Protection of Investors
|Index of Transaction Transparency*||7.0||6.0||7.0||5.0|
|Index of Manager’s Responsibility**||5.0||5.2||9.0||5.0|
|Index of Shareholders’ Power***||7.0||6.8||9.0||5.0|
|Index of Investor Protection****||6.3||6.0||8.3||5.0|
Source: Doing Business
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2007||2008||2009|
|FDI Inward Flow (million USD)||11,804||2,717||7,800|
|FDI Stock (million USD)||161,491||150,938||157,627|
|Performance Index*, Ranking on 141 Economies||85||125||66|
|Potential Index**, Ranking on 141 Economies||23||24||-|
|Number of Greenfield Investments***||67||65||36|
|FDI Inwards (in % of GFCF****)||16.9||3.8||8.0|
|FDI Stock (in % of GDP)||52.0||44.3||50.9|
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
Why You Should Choose to Invest in Denmark
- Strong Points
This Scandinavian state's main advantages are:
- A skilled and multilingual workforce;
- Political stability;
- A high purchasing power;
- Well developed infrastructures;
- Great flexibility;
- One of the most advanced telecommunication infrastructures in Europe. The country is a world leader in the use of PCs, Internet and Broadband; and
- A relatively low company taxation rate (25%). Aditionally, expatriates can benefit from a special tax regime.
- Weak Points
The country's main weak points are:
- A relatively high income tax rate;
- A limited domestic market;
- An economic system that is too dependent on the international situation; and
- A currently damages economy.
- Government Measures to Motivate or Restrict FDI
The laws and regulations implemented by the government in recent years are orientated towards more openness and are non-discriminatory. The Danish government has concentrated its efforts on the improvement of general investment conditions and on reducing structural obstacles to market access. Significant progress has been made in privatization, de-monopolization and competitiveness.
In the eyes of the investors, Denmark has the advantage of being strategically geographically situated. It is a natural doorway to Scandinavian countries and the Baltic region.
- Bilateral Investment Conventions Signed By Denmark
- As of December 2004, Denmark has concluded investment protection agreements with the following 41 countries: Albania, Argentina, Bolivia, Bulgaria, Czech Republic, Chile, China, Croatia, Egypt, Estonia, Ghana, Hong Kong, Hungary, India, Indonesia, Latvia, Lithuania, Malaysia, Mexico, Mongolia, Mozambique, Nicaragua, North Korea, Pakistan, Peru, the Philippines, Poland, Romania, Russia, Slovakia, Slovenia, South Korea, Sri Lanka, South Africa, Tanzania, Tunisia, Turkey, Ukraine, Venezuela, Vietnam, and Zimbabwe.
Procedures Relative to Foreign Investment
- Freedom of Establishment
- Acquisition of Holdings
- A majority holding interest in the capital of a local company is authorized.
- Investment Aid Agency
Invest in Denmark
Federation of Danish Investment Associations
- Tenders, Projects and Public Procurement
Licitationen, Tenders & Projects from Denmark
Globaltenders, Tenders & Projects from Denmark
Tenders Info, Tenders in Denmark
DgMarket, Tenders Worldwide
- Other Useful Resources
Ministry of economic and business affairs
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