Bilateral trade between Sweden and Vietnam grows by 11.8% in the first 11 months of 2024, reflecting a robust recovery and strengthening economic partnership. This growth marks a significant milestone as the two nations celebrate 55 years of diplomatic relations.
Sweden stands as Vietnam’s largest trade partner in Northern Europe. Major companies like IKEA and H&M have increased production orders in Vietnam, shifting operations from China. This trend aligns with the global move towards diversifying supply chains while meeting rising consumer demand for sustainable products.
During this anniversary year, various initiatives have fostered closer cooperation in trade and investment. The recent Vietnam-Sweden Business Forum, held on September 6, 2024, in Stockholm, focused on key areas such as digital transformation, energy transition, and innovation. The event provided a platform for businesses to explore collaboration and resulted in five memoranda of understanding (MOUs), strengthening ties between the countries.
Key Vietnamese ports, including Tân Cảng Sài Gòn and Gothenburg, signed agreements to enhance logistics and transport links. These partnerships aim to streamline shipping routes between Vietnam and Sweden, reducing logistics costs and improving trade efficiency.
In addition to logistics, Vietnam and Sweden continue to cooperate in technology. A notable MOU between Ericsson and Mobifone established a 5G Innovation Center in Vietnam, marking a pivotal step forward in developing advanced technology solutions.
The Free Trade Agreement good foundation
The Free Trade Agreement between Vietnam and the EU (EVFTA) remains a legal foundation for boosting trade and investment. In 2023, total bilateral trade reached USD 1.29 billion, with steady growth expected to continue into 2024.
As consumer preferences shift toward sustainability, Swedish consumers increasingly favor eco-friendly products. This trend creates new opportunities for Vietnamese exporters in sectors such as organic agriculture, seafood, and sustainable textiles.
Vietnamese businesses are encouraged to adopt international standards and sustainable practices to meet the expectations of the Swedish market. By collaborating with major retailers like ICA, Coop, and Axfood, Vietnamese products can gain access to a wider audience, strengthening trade ties between Sweden and Vietnam.
Source: Cong Tuong // Embassy of Sweden in Hanoi
