New Prospects in Vietnam - Sweden Economic Cooperation

On June 12, 2025, Prime Minister Pham Minh Chinh began his official visit to the Kingdom of Sweden at the invitation of Prime Minister Ulf Kristersson. This visit marks a significant milestone in the long-standing diplomatic relations between Vietnam and Sweden, which began in 1969 when Sweden became the first Western country to establish diplomatic relations with Vietnam. The visit is expected to deepen cooperation in key areas such as green energy, digital transformation, healthcare, and infrastructure.

Vietnam - Sweden Economic and Trade Relations

Sweden is a longstanding friendly partner with comprehensive cooperation relations with Vietnam. Sweden supported Vietnam's struggle for national independence and reunification and remains the largest non-repayable aid donor to Vietnam since 1967, with total aid exceeding USD 3 billion, focusing on healthcare, economic reform, institutional building, and administrative reform.

According to statistics from the General Department of Customs, bilateral trade between Vietnam and Sweden in 2024 reached nearly USD 1.473 billion, an increase of 14.3% compared to 2023. Vietnam exported USD 1.045 billion to Sweden (up 10.5%) and imported USD 427.6 million (up 25%).

Total Import and Export Turnover

In the first four months of 2025, impressive growth continued with a total turnover reaching USD 580.5 million, up 24.2% compared to the same period in 2024. Specifically, Vietnam's exports reached USD 403.9 million (up 14.2%), while imports from Sweden reached USD 176.5 million (up 55.3%).

Balanced growth in both exports and imports is a positive sign, indicating the complementary nature of the two economies within the global supply chain. It also reflects the increasing level of trust and confidence between the business communities of Vietnam and Sweden.

The trade structure between Vietnam and Sweden is relatively balanced, aligning well with the comparative advantages of each side. Vietnam primarily exports traditional but high-value goods such as textiles and garments, footwear, seafood, wooden products, handicrafts, phones and components, computers, and electronic products. Among these, electronics and telecommunications equipment as well as textiles and garments are the two largest export categories.

In 2024, Vietnam exported to Sweden USD 103.9 million worth of textiles and garments, USD 99.8 million of computers and components, and USD 68.7 million of footwear. Notably, although the export value of phones and components slightly declined compared to 2023, it still reached USD 327.9 million, accounting for over 30% of Vietnam’s total exports to this market.

In contrast, Vietnam imports high-tech goods from Sweden such as machinery, equipment, pharmaceuticals, chemicals, and various types of paper. In 2024, Vietnam imported USD 143.7 million in machinery and equipment (accounting for over 33% of total imports from Sweden) and USD 113.4 million in pharmaceuticals.

EVFTA Agreement Creating New Momentum for Cooperation

Since the EU-Vietnam Free Trade Agreement (EVFTA) took effect in August 2020, many of Vietnam's key exports to the Swedish market have enjoyed tariff preferences, facilitating market expansion. EVFTA also sets higher requirements for rules of origin, technical standards, supply chain transparency, compelling businesses to invest in enhancing competitive capabilities.

According to the Vietnamese Trade Office in Sweden, the Swedish market with its stringent standards for food safety, environment, and origin traceability is a crucial "capability test" for Vietnamese goods entering the European market. Vietnamese enterprises that conquer this market will have greater advantages in accessing other EU countries.

Green Transformation - Sustainable Strategic Cooperation

In the context of global climate change and the demand for sustainable development, both Vietnam and Sweden are strongly committed to reducing emissions, developing renewable energy, and promoting green economy.

Sweden is seen as a pioneer in green transformation, with advanced technology in areas such as wind energy, waste management, sustainable transport, and smart construction. These are areas of significant interest to Vietnam, especially in meeting commitments made at COP26 to achieve net-zero emissions by 2050.

In recent economic forums and conferences, Swedish government representatives and major corporations such as Ericsson, AstraZeneca, ABB, and IKEA have expressed their desire to enhance cooperation with Vietnam in energy transition, circular economy development, and innovation towards sustainable development goals.

Vietnam, with its priority on attracting high-quality foreign investment accompanied by technology transfer, regards Sweden as a potential partner in pursuing a green, efficient, and environmentally friendly growth model.

Enhancing Investment Promotion and Business Connectivity

Another important driver promoting bilateral economic relations is the increased promotion of trade and investment activities and business exchanges between the two countries.

Throughout 2024 and the first half of 2025, a series of events have been organized to connect the business community, such as:

• Vietnam-Sweden Investment Promotion Forum in Stockholm in June 2024, organized by the Ministry of Planning and Investment of Vietnam in collaboration with the Embassy.

• Sweden Business Summit in Hanoi, where major Swedish conglomerates share experiences and seek cooperation opportunities.

• Working sessions between the Minister of Industry and Trade of Vietnam and representatives of Swedish enterprises in Vietnam to address obstacles and promote strategic investment projects.

In addition, Swedish enterprises operating in Vietnam not only perform effectively but also make significant contributions to the community through sustainable development, education, healthcare, and innovation programs. The increasingly improved business environment in Vietnam further facilitates the expansion of Swedish investments and fosters long-term cooperation.