2011 Foreign Investor Summit

Transcription

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2 Finn Lauritzen Director General Danish Enterprise and Construction Authority

3 Laurie S. Fulton United States Ambassador to the Kingdom of Denmark

4 Summit Program 09: Business Barometer Stephen Brugger, AmCham Denmark 10:00 Keynote: My Vision for Trade and Investment Promotion Pia Olsen Dyhr, Minister of Trade and Investment 10:15 The importance of Multinational Enterprises in Denmark Jan Rose Skaksen, Professor CBS (Kim Østrup, IBM) 10:25 The Talent to Compete Charlotte Mark, MD - Microsoft Development Center 10:35 Copenhagen as a Driver of Foreign Investments Torben Möger Pedersen, CEO - PensionDanmark 10:40 Panel Discussion & Audience Q&A 11:15 Networking and Coffee

5 The Voice for International Business in Denmark More than ten years bridging the trans-atlantic divide

6 AmCham s 2011 Business Barometer Stephen Brugger Executive Director AmCham Denmark

7 2011 Business Barometer Conducted between June and August 17, 2011 Sent to 259 general managers encompassing a broad cross-section international businesses Received 98 responses (38 % response rate) Respondents represent multinationals with headquarters both inside Denmark (30 %) and outside Denmark (70 %) Primary focus: company trends impacting investments / jobs and labor information (talent)

8 Investment in Denmark and Forecast % 50 44,9% 46,9% 41,8% 40 34,7% 30 26% 2009/ / % 11,2% 2012 forecast 10 8% 7,1% 5,1% 4,1% 3% 2% 2% 0 Increased substantially Increased Remained unchanged Declined Declined sharply

9 Has / is your company considered moving Investments/jobs out of Denmark? % 47% 53% 49% 53% 47% Yes No

10 Main reasons cited for moving investments / jobs out of Denmark* % % 16 % 25 % Downsizing Inability to attract and retain the needed skills Personal tax burden on employees The high cost of doing business in Denmark * Answers given by respondent that have considered options of moving Investments/jobs out of Denmark

11 Do you agree that the shortage of highly qualified labor will continue to be a problem? 45 44% % 32% 5% Strongly agree Agree Somewhat agree Disagree Strongly disagree 5 1% 0 Agree Disagree

12 Denmark's ability to attract and retain highly skilled foreign employees 60 55% 55,7% % 36,1% ,2% 10 3% 0 Excellent/above average Average Below average/poor

13 Summary: Although 47% of the companies expects to increase their Danish investments in % are considering moving their investments out of Denmark. The high cost of doing business in Denmark is by far the biggest issue for the multinationals. 90% consider Denmark's ability to attract and retain highly skilled foreign employees as average to below average or even poor.

14 My Vision for Trade and Investment Promotion Pia Olsen Dyhr Minister of Trade and Investment

15 Multinational Enterprises in Denmark Value Added, Investments and Jobs! Kim Østrup Chairman, AmCham Denmark Vice President, IBM Denmark

16 Business activities by foreign owned companies in Denmark Number of enterprises Number of employees 1.2% (2008=1.2%) 18.3% (2008=18.8%) Value added 21.5% Turnover 21.8% (2008=23%) Export 26.6% If employees in foreign owned firms were instead employed in average Danish firms, GDP would be 50 billion DKK lower

17 How do we improve Danish productivity and competitiveness? We need more highly productive firms!

18 How do we get more highly productive firms? There are many important factors behind a high productivity: 1. Investments 2. Technology 3. Organization 4. Management 5. Qualifications 6. Competition 7. Globalization

19 Investments 1. The level of investments 2. The type of investments

20 Contribution to labor productivity (ØEM)

21 Inward and Outward FDI FDI Gap: 275 billion DKK

22 Return of Education Value of highly educated within manufacturing Common effect Own effect Productivity as uneducated

23 Foreign Talent Malchow-Møller, Munch and Skaksen, 2011 Foreign experts are even more valuable than Danish experts 1. Productivity increases more in firms hiring foreign experts than in firms hiring Danish experts (small but statistically significant) 2. Export increases more in firms hiring foreign experts than in firms hiring Danish experts

24 Conclusion Denmark needs to become more productive and more competitive: New investments in capital and talent is part of the solution

25 The Talent to Compete and the need for A National Talent Strategy Charlotte Mark Managing Director Microsoft Development Center Copenhagen

26 Improved expert taxation 26% flat rate for 5 years More seats with international schools 100 seats this year, another 150 coming More information and services in English International Citizen Service Centers Key info translated into English Extended time to translate driver s license Non-EU driver s license extended to 3 months

27 Demographic changes Shortage of at least people with a higher education in 2030 Mismatch in supply and demand Demand for unskilled workers , while skilled/highly educated in ten years 11% unemployment rate in the Euro zone, while 2.8 million jobs remain unfilled in the EU For sources: see AmCham Talent white paper, 2011

28 Focus Developing domestic talent Attracting/retaining international talent Requirement Long term commitment Public-private partnership Inter-ministry collaboration Method Forecasting the skills needed Particular needs for FDI Channeling investments in education and framework conditions

29 Copenhagen as a Driver of Foreign Investments Torben Möger Pedersen CEO, PensionDanmark Member of Copenhagen Business Task Force

30 Copenhagen as a Driver for Foreign Investments CEO Torben Möger Pedersen, PensionDanmark 1 November 2011

31 PensionDanmark at a Glance Industry-wide pension fund established in the early 1990 s Key figures: 600,000 members Premiums: 1.4bn Assets under management: 15bn Global investor with 45 per cent of assets ( 7bn) invested abroad Leading Danish investor in Green Growth projects Off Shore Wind Farms: Nysted og Anholt New partnership with EKF 31

32 The City of Copenhagen can save Danish Economic Growth Copenhagen has the right preconditions for growth 75 per cent of new jobs over the past 10 years were created in the Capital Region 80 per cent of high-tech enterprises and 70 per cent of private R&D located in the Capital Region Copenhagen ranked as the no. 1 city in Northern Europe to live and work in 32

33 Copenhagen Business Task Force Established by Mayor of Copenhagen, Frank Jensen Task force members: Leif Beck Fallesen, formerly of Børsen Jukka Pertola, CEO, Siemens Bente Overgaard, Group Managing Director, Nykredit Torben Möger Pedersen, CEO, PensionDanmark Key themes: Attract foreign investments by being the best city to do business in (Open for Business) Be accessible to international companies and their employees 33

34 Recommendations Included in Copenhagen s 2012-budget Copenhagen Business Service opens 1 January. Single point of contact for potential new businesses Continued entrepreneurial support in English Lower building taxes for commercial properties International schools European school in Copenhagen 34

35 Commitment to Longer Term Goals Improved infrastructure Fehmarn Belt fixed link High-Speed rail Copenhagen/Hamburg Copenhagen Connected (e.g. strengthen CPH as hub with new connections) Harbour tunnel Metro Cityring to open in 2018 Strengthen Clusters in the Øresund Region Life Science Maritime Finance IT Cleantech Entertainment/Creative 35

36 Private Capital Pivotal in Reaching Long-term Goals Realisation of longer term-goals require new ways of thinking Public- Private-Partnerships (PPP) PensionDanmark have investments and commitments for 0.8bn in PPP in Denmark, Europe and the U.S. PensionDanmark and other responsible investors will actively pursue these opportunities and contribute to boost Danish and European growth 36

37 pension.dk/english Contact information:

38 Panel Discussion Pia Olsen Dyhr Minister of Trade & Investment Charlotte Mark Managing Director, Microsoft Development Center Kim Østrup, Vice President, IBM Torben Möger Pedersen CEO, PensionDanmark

39 Wrap-up and Conclusions Commit to making foreign investments a long-term governmental priority. Create the framework conditions to attract investments (we must be competitive!) Create a national talent strategy linked closely to Denmark s investment strategy. Attract and retain foreign talent Increase education level in Denmark Ensure stability, consistency, predictability in corporate tax legislation. Don t change the rules in the middle of the game! Treat Multinationals fairly

40 Upcoming AmCham Event: Sunday, November 27 16:00 to 20:00 (Marriott) For more information, go to

41 Thank you for attending!