In a shifting global landscape, demographic dynamics, digital acceleration, and climate imperatives are redrawing the map of global investment flows. For Denmark—a nation with a legacy of innovation, sustainability, and responsible capitalism—Southeast Asia presents not just an economic frontier, but a generational opportunity to build new bridges.
In this Q&A, Bo Sandberg, chief economist of Active Owners Denmark, shares candid insights into how Danish institutional and private capital is reorienting toward Southeast Asia. From the appeal of the region’s growing middle class to its role in the green transition, Sandberg outlines the sectors gaining traction and the nuanced application of Denmark’s hallmark active ownership model in distant but promising markets like Vietnam, the Philippines, and Singapore.
At a time when global alliances are recalibrating and the Global South is stepping into the spotlight, this conversation offers a timely lens into how a small yet globally-minded economy like Denmark is forging pathways into Asia’s next-generation growth story—grounded in pragmatic idealism and a long-term commitment to shared prosperity.
How do you view the evolving interest among Danish institutional and private investors toward Southeast Asia? In your opinion, what factors are drawing attention to the region—from demographic growth to digital trends or green transition opportunities?
Normally we economists and political lobbyists say, ”It´s the economy, stupid”. While this is still true, we can add, and specify, the issue with the term, ”it´s the demography, stupid”.
Because with a young and rapidly growing population, Southeast Asia offers a dynamic market with increasing consumer demand and an upcoming middle class.
This fact opens possibilities of long-term investments – and a growing middle class has the side effect of a growing amount of lifestyle diseases, which is a big market for the Danish bio tech and medical industry.
Secondly, digital trends are reshaping the economic landscape in Southeast Asia. The rapid adoption of technology and digitalization across various sectors, including e-commerce, fintech, digital services, is creating new investment opportunities. Danish investors are keen to capitalize on these trends, recognizing the potential for high returns in a digitally-driven economy.
Normally we economists and political lobbyists say, ‘It´s the economy, stupid’. While this is still true, we can add, and specify, the issue with the term, ‘it´s the demography, stupid’.
Bo Sandberg, Chief Economist of Active Owners Denmark
Furthermore, the green transition is a significant draw for investors. Southeast Asia is increasingly focusing on renewable energy projects – but will also have to deal with more frequently occurring extreme weather and elevated water levels – which attract interest and potential for impactful investments.
Last but not least – the amount of tariff-generated self-harm and a rapid loss of soft power with epicenter in The White House in the US, force potential investors to look elsewhere – and that could very well be to Indonesia, The Philippines, Malaysia or Singapore.
What specific Southeast Asian markets and sectors are Danish investors most engaged with today—or expressing appetite toward? Are there standout regions (e.g., Singapore, Vietnam, the Philippines) or verticals (e.g., infrastructure, clean energy, tech) that are particularly aligned with Danish investor strategies?
According to Statistics Denmark the Danish exports to South East Asia more than doubled from 2015 to 2023 (an increase by 104%).
Historically, Danish companies have connected quite a lot with Singapore, which often can be a politically and economically stable hub and bridgehead into the South East Asia region. But actually, the entire region can easily serve as base for a “China +1” approach.
Danish investors are increasingly engaged with specific Southeast Asian markets and sectors that align with their investment strategies. Notably, Singapore, Vietnam, and the Philippines stand out as key regions of interest. Singapore’s robust financial infrastructure and business-friendly environment make it a prime destination for investments in technology and financial services. Vietnam’s rapid economic growth and expanding manufacturing sector attract investments in infrastructure and clean energy. The Philippines, with its growing middle class, consumer market and focus on renewable energy, also presents significant opportunities.
Danish investors are increasingly engaged with specific Southeast Asian markets and sectors that align with their investment strategies. Notably, Singapore, Vietnam, and the Philippines stand out as key regions of interest.
In terms of verticals, Danish investors are particularly drawn to sectors such as infrastructure, clean energy, bio tech and technology. Infrastructure projects, including transportation and urban development, are crucial for the region’s growth and offer stable returns. Clean energy initiatives, such as solar and wind power, align with Danish investors’ commitment to sustainability and environmental impact. The technology sector, driven by digital innovation and e-commerce, provides high-growth potential and aligns with the digital trends reshaping Southeast Asia.
Which types of Danish capital are currently active or exploring Asia? Can you provide an overview of the types of members in your ecosystem participating in Asia-focused investments—pension funds, private equity, family offices, VCs—and how they differ in their approaches?
Danish capital is investing in Asia through various types of investors.
Pension funds are significant contributors, focusing on long-term, stable investments. They often invest in infrastructure projects, real estate, and sustainable energy initiatives, aligning with their goal of securing steady returns for their beneficiaries over extended periods.
Private equity firms are also prominent, targeting high-growth opportunities in sectors such as technology, healthcare, and consumer goods. They typically engage in buyouts and growth capital investments, aiming to enhance the value of their portfolio companies through strategic management and operational improvements. But only the few biggest Danish PE-funds are significantly engaged in South East Asia.
Venture capital firms are at the forefront of innovation, investing in early-stage startups with high growth potential. Still, the Danish VC´s are typically rather small and presently don´t have the volume and capacity to be significantly present in South East Asia.
However, we have a very promising, growing Danish cluster of Impact funds, with a growing focus on the Global South, including South East Asia.
Danish investors, known for their commitment to sustainability and responsible investment, apply their values by actively engaging with the companies they invest in.
How does the philosophy of active ownership align with investing in Southeast Asia? Given the long-term nature of many Southeast Asian opportunities, how do Danish investors apply their values of responsible and engaged ownership in these cross-border settings?
Honestly, the active ownership in South East Asia can be of a challenging nature. Geographical – and even cultural – distance, and risks of both political, institutional and legal instability have to be considered all together.
Having said that, the region’s economic and demographic growth and long-term opportunities, compensate to a large extent for the above mentioned challenges.
Danish investors, known for their commitment to sustainability and responsible investment, apply their values by actively engaging with the companies they invest in. This involves regular dialogue with management, advocating for sustainable business practices, and ensuring that ESG criteria are met. By doing so, they not only contribute to the long-term success of these companies but also promote positive societal and environmental impacts.
At the political macro level, the Danish, broad coalition, majority government across the middle has adopted a new foreign policy doctrine (2023), a so-called “pragmatic idealism”. The doctrine acknowledges the uncertain and unpredictable global landscape, shaped by events such as Russia’s bestial conquest invasion of Ukraine.
Pragmatic idealism seeks to balance national interests with democratic values, emphasizing partnerships and alliances to uphold a rules-based world order. It reflects Denmark’s shift from a unipolar world order dominated by the U.S. to a more complex geopolitical reality, where cooperation with the EU and the Global South is crucial.
The doctrine also recognizes the need for compromises in foreign policy when security, commercial interests, or social cohesion demand it. While Denmark remains committed to democracy, freedom, and human rights, it aims to engage with the world as it is, not as it should be.
