Information pertinent to the Danish market

DNHN - The World Bank has classified Denmark as the nation with the greatest business climate in Europe for ten straight years, and it consistently ranks in the top five countries with the best business environment in the world.

Integrated collaboration with Vietnam

Denmark is a highly industrialized nation with a contemporary economy, a high quality of life, and efficient governance. Despite having a population of just roughly 5.8 million, the Danish economy ranks 35th out of 196 countries in terms of nominal GDP in 2019, and per capita income exceeds USD 60,897, 11th in the world.

As an open economy, Denmark supports a free trade policy. Imports and export contribute roughly 60 per cent of the gross domestic product. The World Bank has classified Denmark as the nation with the greatest business climate in Europe for ten straight years, and it consistently ranks in the top five countries with the best business environment in the world.

Denmark is not only a nation in Northern Europe that has established complete cooperation with Vietnam, but it is also one of Vietnam's prospective trading partners in the European market since this is the gateway area linking the North to the rest of Europe. In addition, Denmark has undertaken trade liberalization and market opening policies for many years to establish advantageous export circumstances for businesses.

The Vietnam-European Union Free Trade Agreement, which includes Denmark, went into force on August 1, 2020. When implemented, the agreement will have good repercussions for both countries, fostering Vietnam-Denmark commercial ties and expanding the market for Vietnamese products.

The Vietnamese Embassy in Denmark, in coordination with the Vietnam Trade Office in Switzerland (concurrently Finland, Denmark, Norway, Iceland, and Latvia), will publish the book "Things to know about the Danish market" in 2020, and the Trade Office will keep it up-to-date until June 2022, to assist Vietnamese businesses in taking advantage of the opportunity to promote exports of goods to the Danish market immediately after the EVFTA Agreement enters into force. Please follow this link to read the book: https://vietnordic.com/wp-content/uploads/New-ebooks/Denmark2022/book.html

The EVFTA is regarded as a comprehensive and aspirational agreement that addresses all of the main trade problems. The agreement will assist expand chances for corporate collaboration between Vietnam and the European Union in general and Vietnam and Denmark in particular.

Excellent tax policy.

Regarding import charges, Denmark has historically maintained a no-barrier policy and led the fight against non-tariff obstacles. Denmark is a member of the European Union and adheres most strictly to the regulations governing the European single market. The Danish import tax typically applies to goods from non-EU and EFTA countries. Once products have been cleared at a border gate of an EU member state, they are free to proceed to other EU member states, such as Denmark.

The Common Agricultural Policy governs the import of certain agricultural goods from non-EU and EFTA nations (CAP). These goods are subject to a variety of taxes and levies and include grains, rice, milk and dairy products, beef and veal, olive oil, and sugar.

Taxes are levied to achieve a balance between imports and EU-produced products. Imported commodities entering the EU must be disclosed to Customs according to their categorization in the combined list. (commonly accepted nomenclature - CN). This unified catalogue is yearly noted and published.

About value-added tax: In Denmark, the VAT value-added tax of 25 per cent has been in effect since January 1992 and applies to the majority of items, regardless of whether they are locally produced or imported. products sold or manufactured in Denmark

Special Consumption Tax: In Denmark, packaging, alcoholic drinks, chocolates, and games are subject to an excise tax. Some excise taxes on electricity and fuel are also known as environmental taxes and energy taxes.

On December 27, 2019, the Danish Parliament enacted Act No. 1588, which modifies the tobacco tax legislation and the act on excise taxes on tobacco products and smoked tobacco, increasing them every five years. Beginning 1 April 2020 for cigarettes and 1 January 2020 for tobacco use. To safeguard the environment, single-use bags and bags will be subject to a new, higher fee beginning January 1, 2020.

Observables to bear in mind

Import-export companies must be aware of the list of forbidden and restricted products that cannot be imported into the Danish market (for certain commodities, an import permit granted by the appropriate authorities is required): Some American calf hormones; all asbestos fibres; all products containing the biocide DMF; Atlantic red tuna originating from Belize, Panama, and Honduras; rubber erasers are food-like and edible; toys and games containing copper sulfate; human corpses, human organs and parts, human and animal embryos, human remains either cremated or not yet buried; endangered animals under the Cities convention; weapons and ammunition; hazardous waste such as used needles, or syringes, or other medical waste;

Regarding import permits: Before importing commodities subject to import restrictions into Denmark, importers must acquire authorization from the relevant authorities and submit to stringent inspection.

Steel and textile import licenses are issued by the Ministry of Industry, Business, and Financial Affairs. The Ministry of Environment and Food is in charge of agricultural goods, food, aquatic products of non-animal origin, municipal products, fertilizers, chemicals, and garbage.

EU phytosanitary laws must be complied with by all plants and plant products (including fruits, vegetables, and wood products) that are imported into Denmark. The EU has established phytosanitary measures to prevent the introduction of organisms that are hazardous to EU plants and plant products.

The general requirements are as follows: the goods must have a phytosanitary certificate issued by a competent authority of the exporting country; the goods must undergo customs and quarantine procedures at the first EU border gate of arrival; the goods must be imported by an importer officially registered in an EU member state; the goods must be cleared in advance by customs at the first EU port.

Product safety: Manufacturers and distributors of goods for the European Union (EU) market, including Denmark, must guarantee that their products meet the criteria of the common market. Inform customers of the potential dangers posed by the product and any necessary safeguards. Notify the appropriate national authority and work with them to safeguard consumers if a hazardous product is detected.

The nations of the EU conduct market monitoring and enforce product safety regulations. The EU's quick warning system, RAPEX, facilitates the fast sharing of information between EU member states and the European Commission on potentially hazardous items. In addition to the basic regulations for product safety, the EU has special laws that apply to certain categories of items, including chemicals, medicines, cosmetics, machinery, and equipment, among other EU products.

Technical Standards: The EU urges its members to develop harmonized technical standards. The harmonized standards are developed by three separate standard-setting organizations: the European Standards Committee, the European Electronics Standards Board, and the European Telecommunications Standards Institute.

There are now around 27,000 standards in effect in Denmark, of which 98% are international standards and 2% are Danish standards. As the EU has separate standards for safeguarding the health and safety of consumers and the environment, products tested and certified outside the EU may be retested and recertified under EU regulations.

Phuong Ngan (T/h)