Danish firm Spectre to up investment in Vietnam

09:30 | 17/11/2017 MUTRAP Corner

(VEN) - Bilateral trade and investment between Vietnam and Denmark has grown rapidly. Danish businesses are becoming increasingly interested in Vietnam and wish to expand their operations in this market. Jesper Klausen, Chairman of the Spectre Vietnam Garment Technologies Company Limited, shared the company’s investment plan with Vietnam Economic News’ Nguyen Huong.

danish firm spectre to up investment in vietnam

Why did Spectre A/S choose Vietnam as its investment destination?

Spectre A/S is a Danish garment company established in 1947. The company began outsourcing in East Europe 25 years ago. We have become a global company and we export almost 100 percent of our products. Spectre A/S purchases materials for production from all over the world.

We had surveyed some Asian markets, including China, before choosing Vietnam to be our investment destination. Business activities in Vietnam have expanded rapidly in recent years and are forecast to further expand in the future. This is the reason we decided to build a new factory in Nam Dinh Province with 100 percent investment capital from our parent company, Spectre A/S.

After a seven-month period of construction, the factory has commenced production and currently operates at 50 percent of its design capacity, generating jobs for nearly 700 local workers. The average income of factory workers equals about 140 percent of the regional minimum wage.

Major products of Spectre Vietnam include sportswear for those who love mountain climbing, jogging, cycling and hunting. Our sportswear products consist of three layers: inner layer; middle layer that keeps you warm; and shell layer that protects you against unfavorable weather conditions. Our factory in Nam Dinh exports 100 percent of its products to Europe.

We chose Nam Dinh Province to base our new factory because this locality meets our requirements in terms of transport, workforce, as well as the local government’s willingness to support investors.

Spectre A/S has chosen to concentrate its investment in Latvia and Vietnam.

Could you share your views on the investment environment in Vietnam compared with other Southeast Asian countries?

Vietnam has become an attractive destination for foreign investors. Foreign investment flows to Vietnam keep growing. The country has a favorable geographical location, abundant human resources, and a skilled and adaptable workforce that is eager to learn. Moreover, the labor cost in Vietnam is competitive compared with other countries in the region.

Does Spectre have any plan to expand its operations in Vietnam?

Next year, Spectre will invest an additional US$1 million in Vietnam to expand production and increase exports.

Could you say something about Spectre’s social accountability in Vietnam?

Our factories in Vietnam not only generate jobs for local workers but also transfer Danish expertise and business values.

Spectre Vietnam has created good working conditions and provided support for local communities. It is one of the few businesses in Vietnam that have been certified as meeting SA8000 standards for social accountability and ISO14011 standards for environmental management.

On September 29, Spectre Vietnam opened its new factory in Nam Dinh Province’s Hoa Xa Industrial Park. With total investment of US$5 million from its parent company, Spectre A/S (Denmark), the factory generates jobs for nearly 700 local workers. This is Spectre’s second factory in Vietnam, the first being in Thai Binh Province.

Nguyen Huong