Interview with the Danish Ambassador to Thailand and Cambodia
Last week, Senior Communications Officer Stew Post sat down with the Danish Ambassador to Thailand and Cambodia Danny Annan for a conversation during his recent visit to Phnom Penh. Over the course of a wide-ranging discussion the two spoke about the Ambassador's career in the Ministry of Foreign Affairs, the role of business chambers in supporting European companies, and the future potential for Danish trade delegation to Cambodia.
Stew: Can you tell us a little about your background? How did you come to be the Danish Ambassador to Thailand and Cambodia? How much time have you spent in Cambodia?
Ambassador Annan: I've been in the Ministery of Foreign Affairs for almost 30 years now. It actually started with a trip. I took leave from university one year and came to Southeast Asia and also traveled in Africa and Latin America, the US, basically all over the place. I've always been very fascinated by international politics and the world outside of Denmark.
When I joined the Ministry of Foreign Affairs 28 years ago, I realised what really attracts me is not so much sitting in headquarters but getting out in the field. My first posting was four and a half years in Syria, and then I went to Sri Lanka, then back to Denmark, then one year in Lebanon, four years in India, and back to Denmark. This time it has been nine and a half years, with five years in Iran, four years in Turkey, and now six months in Thailand and Cambodia.
Stew: You've certainly spent a significant portion of your career in the field. Prior to your current posting, how much time had you spent in Cambodia?
Ambassador Annan: I came here as a tourist seven years ago. I have always had childhood visions of Angkor Wat, so for me Cambodia always stood out as a very exotic place. When I traveled here with a friend seven years ago, I was definitely not disappointed. So, when the Ministry of Foreign Affairs decided to appoint me ambassador to Thailand and Cambodia, of course that made me very happy, not only for Thailand but definitely also to have a chance to come much more frequently and dig deeper into Cambodia.
Now, this is my third visit since I became ambassador. The first visit was to present my credentials to His Majesty the King and then the second visit I had shortly after that was to meet the Danish community. There's a bit below 100 persons from Denmark living in in Cambodia. I think it's still a substantial number but compared to Thailand where we estimate there are between 4000 and 6000 Danes living, it's a much smaller community.
But when I met the Danish community here, I learned many of them came here to work representing Danish companies or to set up their own business. I found that very interesting.
Stew: As the Danish Ambassador to Thailand and Cambodia, you are likely well versed in the business landscapes of each country. From a business perspective, what are some of the key differences between Cambodia and Thailand? Are there opportunities in Cambodia that are not present in Thailand?
Ambassador Annan: One area where we see a clear difference is that the garment industry is very strong in Cambodia compared to Thailand, where the labour costs are higher. You see a lot of international brands having factories in Cambodia or, if not their own factories, they source from factories established here. There is also, to my knowledge, a very big Danish brand called Bests Seller that produces some of their products here. They are famous for the brands Jack & Jones and Vero Moda and selling globally. Cambodia definitely has an advantage when it comes to the more labour-intensive industries.
However, it is every country's ambition to move up the food chain and that is Cambodia's ambition as well. I've learned in meetings with government officials over the last couple of days that there is now a very strong focus on vocational training and improving the educational system. So, for companies investing in industries with the requirement of more skilled labor, they can also find employees in Cambodia. In Thailand, maybe they are one or two steps ahead; they can attract more knowledge-intensive industries than Cambodia has been able to so far. But of course, it's the beginning of a journey for Cambodia, and I'm quite sure Cambodia will be successful.
Stew: The purpose of this trip to Cambodia is to conduct commercial visits. What have been your impressions of the business landscape here in terms of Denmark's presence and opportunities for collaboration?
Ambassador Annan: This time my visit is primarily to dig deeper into the commercial opportunities between Denmark and Cambodia. So, that's what I've spent a lot of time discussing with companies, with EuroCham, with government officials. I think there's good potential for increasing our bilateral trade even more.
We have 10,000 kilometres distance between Denmark – 6 million inhabitants –and Cambodia with 17 million people. We have exports of close to 200 million euros, in the overall picture not substantial, but what really caught my attention was the growth rate in Danish exports to Cambodia over the last couple of years.
From 2022 to 2023 exports increased 88%. And from 2023 to 2024 – the first 11 months, that's the only figures I have – another 41% increase. So, I think there must be something happening. This also confirmed that we need to have a deeper look at what we can do together to strengthen the Cambodian economy and strengthen Danish companies with interest in Cambodia.
Stew: That represents some significant growth with the potential for further development of business ties, although there does seem to be a bit of a trade imbalance between the two countries. Do you see this imbalance as an issue and what are some of the industries that you feel have the most potential for Cambodia/Danish trade?
Ambassador Annan: Even though there's a substantial gap between Cambodian exports to Denmark and Danish exports to Cambodia, if I was Cambodian, I would not be too concerned about it. I would actually not be concerned at all because what we export to Cambodia is allowing for further value creation for Cambodian products. And that is obviously to the benefit of Cambodia.
For example, the largest single product we sell to Cambodia is hides and skins. These products are processed here, so the value added to the product is actually done in Cambodia, obviously to the benefit of Cambodia.
I would say that our bilateral trade with a specific focus on Danish exports to Cambodia is actually adding to value creation of Cambodian products, which is fully in line with government policy that more value creation should be done in Cambodia.
Stew: The import of raw materials for processing in Cambodia is certainly not the norm in terms of general trade trends in the country. Is there potential for Danish businesses to further expand Cambodia's domestic processing capacities?
Ambassador Annan: We normally see the export of processing machinery and packaging machinery but also ingredients from Denmark. We have some very strong Danish companies in the ingredient sector that make sure products last longer but in a sustainable way without using too many chemicals; instead, they use natural color and enzymes, things like that. We have a very strong industry in this area that's based on more than a hundred years of experience.
So, I think that food processing, packaging, and ingredients is where we can lay the foundation stone for an even stronger commercial relation between Denmark and Cambodia.
Stew: What role do you think that international business chambers like EuroCham and specifically Nordic chambers like NordCham here, what role do you think they can play in kind of strengthening ties between Scandinavian countries and Cambodia?
Ambassador Annan: I think they can be like a midwife to help new Danish companies enter the market. The meeting I had yesterday with EuroCham was very beneficial for me. I definitely learned a lot. If you come as a Danish business person and you want to test the waters in Cambodia, I do believe that contact with EuroCham or NordCham would be a very good place to start, to get a sense of how it is to do business in Cambodia: what are the opportunities but also where are the pitfalls; what kinds of challenges do you need to be aware of. I look very much forward to working with NordCham and EuroCham in the years to come.
Stew: Does Denmark conduct any kind of organised trade delegations to Thailand and, looking ahead, could this type of official business-oriented visit be conducted in Cambodia?
Ambassador Annan: This is actually one of the main reasons why I came to Cambodia, to put a finger into the soil and get a feeling of whether it would be feasible to have an official delegation.
Last year in Thailand we had a Danish delegation focused on food processing and packaging in the agro-industry. I would say, if you look at the overall region of Southeast Asia, the comparative advantages of Denmark would be in food tech and the agro-industry. Renewable energy and energy efficiency are also strengths of Denmark as well as maritime industries. And then of course healthcare. We do have healthcare companies operating in Cambodia, not as independent entities, but through distributors on the Cambodian market.
For the future, I know there is a Danish interest in Cambodia. We are in contact with one of the major business associations in Denmark and they are keen on giving it a try to see if enough Danish companies could be interested in joining a business delegation to Cambodia. Without putting my head on the block, I would say that would most likely be the first business delegation coming from Denmark to Cambodia in, I don't know how many years, but many, many years, if not the first time.
So, it would be a very, very positive step to see a Danish business delegation in Cambodia. Again, I think where we would stand, the best chance of having a successful business visit would be in food processing and packaging and the agro-industry with the view of assisting Cambodia in ensuring that more value creation is done in country and not out of the country.
It would be great if Cambodia can do more to support value-added production in country and that is where I believe that Danish companies could contribute.
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