Vietnam–Sweden economic ties more robust and diversified

Vietnam–Sweden economic ties more robust and diversified

Prime Minister Pham Minh Chinh’s official visit to Sweden marks a significant milestone in the enduring diplomatic relationship between Vietnam and Sweden, which began in 1969 when Sweden became the first Western country to establish diplomatic ties with Vietnam.

This visit, following the recent trip to Vietnam by Swedish Minister for International Cooperation and Foreign Trade Benjamin Dousa, is expected to further strengthen high-level exchanges and open new avenues for cooperation across ministries, localities, businesses, and civil society.

Marcus Persson, country manager in Vietnam Business Sweden

The visit is anticipated to catalyse deeper collaboration in key sectors such as green energy, digital transformation, healthcare, and sustainable infrastructure – areas where Sweden holds expertise and Vietnam demonstrates strong development potential. It is also expected to result in new trade and investment agreements and business forums that will enhance bilateral economic engagement.

Swedish companies have shown growing interest in Vietnam’s dynamic market, with recent investments including Trelleborg Sealing Solutions’ new facility in Dong Nai, Hestra Gloves’ $9 million project in Haiphong, and Autoliv’s advanced airbag manufacturing plant in Quang Ninh. Leading Swedish firms such as ABB, Assa Abloy, and Polarium continue to maintain a strong presence in Vietnam.

Meanwhile, Vietnamese enterprises are expanding into Sweden, with FPT recently opening offices in Gothenburg and Stockholm. To further strengthen bilateral economic ties, both countries are encouraged to establish a high-level economic dialogue platform, promote innovation partnerships, expand capacity-building programmes, and support small and medium-sized enterprises through targeted outreach and digital trade networks.

These mechanisms, if implemented consistently, will create a more resilient and dynamic economic partnership between the two nations.

In terms of bilateral trade, Vietnamese exports to Sweden are well-positioned to grow, supported by the EU-Vietnam Free Trade Agreement, which has significantly reduced trade barriers. Additionally, Vietnam’s growing reputation for producing high-quality goods – particularly in sectors such as textiles, seafood, electronics, and agricultural products – aligns well with Swedish consumer preferences for reliable and responsibly sourced products.

However, Vietnamese exporters also face notable challenges. Sweden enforces stringent regulations on product safety, environmental standards, and labour practices, which may pose compliance difficulties for some Vietnamese producers. For example, carbon border adjustment mechanism will pose direct impacts on six industrial sectors that emit a lot of carbon including iron and steel, cement, fertiliser, aluminium, electricity and hydrogen, and other industries that consume a lot of raw materials and energy.

Despite these challenges, there are promising opportunities. Swedish consumers are increasingly drawn to sustainable, naturally sourced, and ethically produced goods, presenting a chance for Vietnamese companies to differentiate themselves through green production practices. Moreover, Vietnam’s high-quality products, including speciality coffee, agricultural products, garments and footwear, and wood products, will continue to show strong potential for growth.

With strategic investment in quality, branding, and sustainability, Vietnamese goods can strengthen their foothold in Sweden’s discerning and high-value market.

To support the bilateral relationship as well as trade promotion, Business Sweden provides strategic advisory services, market insights, and facilitates delegation to help Swedish companies navigate Vietnam’s dynamic business environment. We work closely with both established firms and new entrants, offering tailored support in areas such as market entry strategies, sale acceleration and company establishment.

In recent years, Business Sweden, together with the Embassy of Sweden in Vietnam, has intensified its efforts to promote sectors aligned with Vietnam’s development priorities, including green energy, digital transformation in the healthcare system, and smart solutions for infrastructure projects. We have actively facilitated high-level business delegations and trade missions, providing Swedish companies with valuable opportunities to assess investment prospects and engage directly with key Vietnamese stakeholders.

In addition, we have organised a range of workshops and seminars that bring together participants from both countries, fostering dialogue on policy development, knowledge sharing, and cross-sector collaboration.

Our efforts also extend to leadership development, where we support Vietnamese state-owned enterprise leaders through the Swedish Institute Management Programme. This annual initiative equips participants with practical tools and insights to bridge the gap between sustainability ambitions and actionable strategies.

I believe PM Chinh’s visit, together with our proactive initiatives in Vietnam, has laid a solid foundation for a more robust and diversified economic partnership. With continued high-level exchanges and policy alignment, Vietnam-Sweden trade and investment cooperation is poised for substantial growth.

VIR