Leading Swedish names increase Vietnamese focus

Leading Swedish names increase Vietnamese focus

Swedish companies are stepping up large-scale investment ventures in Vietnam with an increased focus on technology and innovation.

In early July, Swedish food processing and packaging giant Tetra Pak inaugurated the second phase of its packaging material production plant worth $78 million in Ho Chi Minh City, bringing the total investment to $253 million.

This significant milestone boosts the plant’s annual capacity from 12 billion to 30 billion packages, enabling faster delivery of innovative and sustainable aseptic carton solutions to food and beverage producers across Southeast Asia.

The expansion reflects Tetra Pak’s ongoing commitment to making food safe and available everywhere. By scaling up production, Tetra Pak is not only meeting growing regional demand, but also supporting its customers in achieving sustainable growth.

Adolfo Orive, president and CEO of Tetra Pak, said, “By expanding our capabilities, we are helping brands meet evolving consumer expectations with packaging solutions that are safe, functional, and sustainable. This strategic move strengthens our ability to offer greater speed, flexibility, and resilience – key drivers of success for our customers in today’s dynamic marketplace.”

In mid-June, Swedish textile recycling firm Syre was granted approval by the former province of Binh Dinh, now part of Gia Lai province, for its first gigascale textile-to-textile recycling plant, worth around $1 billion.

In a ceremony in Stockholm, the investment registration certificate was handed over to Syre, witnessed by Prime Minister Pham Minh Chinh and ministers from both the Vietnamese and the Swedish governments.

Emma Stjernlöf, chief communication and people officer of Syre, told VIR, “Vietnam was shortlisted due to its strategic positioning within the textile supply chain with a long history of a vibrant textile industry and access to know-how, as well as great ambition in green transition and circular economy.”

The key criteria for establishment include access to green energy and access to feedstock (recyclable textile material) as well as a pilot mechanism with a licence to import recyclable textile material from surrounding countries. Both sides now work together to meet these criteria, including an industrial park and securing the import licence, in order to serve the recycling plant. The partnership will, with these conditions in place, be a great opportunity to jointly lead the textile shift needed.

In mid-March, Swedish fintech company Vilja, which specialises in cloud-native composable core banking solutions, also unveiled its expansion into Vietnam through a number of domestic and regional partnerships.

“We are committed to a long-term partnership with our Swedish and Vietnamese partners and government agencies in our joint mission to modernise and future-proof Vietnam’s banking industry with secure, compliant, and configurable cloud adoption,” said Fredrik Ulvenholm, CEO of Vilja.

Meanwhile, Swedish automotive safety supplier Autoliv is building a new airbag cushion plant in the northeastern province of Quang Ninh. Located in Amata City Halong Industrial Park, the new facility will produce airbag cushions and fabric to meet growing demand in Asia. Spanning 90,000 sq.m, the venture is set to create up to 2,000 jobs in the locality, further strengthening Vietnam’s role as a key player in global manufacturing.

According to the report by the Foreign Investment Agency under the Ministry of Finance, in the first half of 2025, Sweden made a surprising leap to third place in the foreign direct investment ranking, with total investment of $1 billion, accounting for 10.8 per cent of total newly registered capital – trailing only Singapore and China. As of late June, Sweden ranked 23rd among 151 countries and territories investing in Vietnam, with 111 active projects totalling $1.76 billion.

It is clear that Swedish companies are leading the European investment wave in Vietnam in the first half of the year. The European Chamber of Commerce in Vietnam’s (EuroCham) Q2 2025 Business Confidence Index report also revealed that European businesses maintain confidence in Vietnam’s long-term growth trajectory. Some 72 per cent of respondents are likely to recommend Vietnam as an investment destination, up by 4 percentage points from the previous quarter, showing solid long-term confidence.

Marcus Persson, country manager at Vietnam Business Sweden, said, “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 northern Haiphong, and Autoliv’s advanced airbag manufacturing plant in Quang Ninh. Swedish firms such as ABB, Assa Abloy, and Polarium continue to maintain a strong presence in Vietnam.”

VIR