Danida Business Instruments

Danida Market Development Partnerships

The overall objective of Danida Market Development Partnerships (DMDP) is to contribute to sustainable economic growth and employment in developing countries. This is done by supporting partnerships that combine knowledge and resources from several actors and engage the private sector in development cooperation. The aim is to contribute to develop more sustainable markets that promote the achievement of the UN Global Goals for sustainable development.

The programme is available in Denmark's priority countries and in countries with a GNI per capita below the World Bank limit of lower middle income countriesand with a Danish representation. In addition, it is available in selected focus countries in regional initiative and countries under particular strain with a Danish representation. Vietnam is among 26 countries that are qualified for receiving the programme.

Danida Business Explorer

Danida Business Explorer (DBE) is one of the initiatives in the Government Strategy on Export Promotion and Economic Diplomacy, which was launched in May 2014. DBE aims to help Danish companies take the first steps into new markets, and it contributes to sustainable growth and employment in developing countries including the global goals for sustainable development.

DBE is available in countries eligible for Danish development cooperation, i.e. with a GNI below USD 3,300 per capita in 2015, with a Danish representation, and where there are opportunities for facilitating private sector development. Currently, DBE operates in 21 countries including Vietnam.

Danida Sustainable Infrastructure Finance (DSIF)

The Danida Sustainable Infrastructure Finance (DSIF) programme offers interest free loans for infrastructure projects in Vietnam. A typical loan has 10 years' maturity and is issued in USD or EUR. The DSIF-subsidy consists of up to three elements:
◾Payment of interest - in full or in part.
◾Payment of the export credit premium and other financial costs.
◾Cash grant to reduce the principal of the loan, if the above does not amount to the subsidy level required by the ruling OECD agreement. The grant element is 50% in the Least Developed Countries (LDC) and 35% in other countries.

The buyer/borrower repays the loan in equal, semi-annual instalments, normally starting six months after the commissioning of the project. The borrower will pay only a commitment and a management fee.

DSIF loans are to help mobilise funds for projects that are financially 'non-viable' and, therefore, would not be carried out without financial subsidies. Priority sectors for the DSIF are: green growth, water, renewable energy, food, education, healthcare and agriculture.

The minimum budget for a DSIF project is DKK 100 million.

Danida Business Partnership

The Danida Business Partnership (DBP) programme has been suspended since 10 November 2014 and thus new commitments can no longer be made under this programme. The decision follows an evaluation of the former business-to-business programme, which concluded that the effect on job creation and sustainable growth in developing countries has not been sufficient. Furthermore, there has been a lack of clarity with regards to EU rules.

Ongoing partnerships will continue as planned. Under Toolboxes it is possible to find forms needed for the partners' implementation of their partnerships, including in relation to progress and completion reports, reimbursement claims and irregularity forms.