Since the EU–Vietnam Free Trade Agreement (EVFTA) came into effect in August 2020, many of Vietnam’s key export products to Sweden have benefited from tariff preferences, facilitating market expansion. However, EVFTA also imposes higher requirements on rules of origin, technical standards, and supply chain transparency—urging Vietnamese enterprises to improve competitiveness and operational capacity.

Sweden’s market, known for its strict standards on food safety, environment, and traceability, serves as a key testing ground for Vietnamese products entering Europe. Companies that can successfully meet Swedish standards will have a stronger position to expand to other EU countries.

Beyond traditional trade, the two countries are also deepening cooperation in technology, renewable energy, and innovation. Sweden is a pioneer in green economy, circular economy, and e-government—strategic directions that align closely with Vietnam’s current development goals.

Many Swedish enterprises, especially in clean technology, telecommunications, and digital finance, are exploring investment opportunities in Vietnam. Meanwhile, Vietnamese companies are increasingly interested in leveraging Swedish technology and advanced management practices to enhance product quality and expand exports.

According to Vietnam’s Foreign Investment Agency (FIA), in the first seven months of 2025, Sweden’s registered investment capital in Vietnam exceeded USD1.02 billion across four new projects (compared to just USD168,000 during the same period in 2024). This made Sweden the leading Nordic investor in Vietnam (Denmark: USD83.91 million, Norway: USD0.76 million), ranking 8th overall among all FDI sources.

Currently, around 70 Swedish companies operate in Vietnam, including major names such as Tetra Pak, AstraZeneca, Ericsson, ABB, IKEA, Volvo, and H&M. Swedish investment is concentrated in manufacturing, pharmaceuticals and healthcare, ICT, renewable energy, and green technology. In recent years, Swedish firms have also increased R&D activities in Vietnam, taking advantage of the country’s pool of high-quality engineers—viewing Vietnam not just as a production base but also a regional innovation hub.

During the Vietnam–Sweden Business Forum held in June, coinciding with Prime Minister Phạm Minh Chính’s visit to Sweden, the two sides signed seven cooperation agreements in fields such as education, aviation, maritime transport, artificial intelligence (AI), and innovation. This milestone paves the way for new business opportunities and high-tech collaborations in the future.

Sweden’s growing investment presence in Vietnam reaffirms the country’s attractiveness as a strategic destination for global investors seeking a balance of growth potential, stable investment climate, and opportunities for innovation.

Vietnam’s Exports to Sweden

According to Vietnam Customs, during the first eight months of 2025, Vietnam’s exports to Sweden reached USD854.41 million, up 24.65% year-on-year. The top export items were:

Other notable export categories include footwear, wood products, seafood, machinery, and metal products.

Sweden’s Exports to Vietnam

In the same period, Sweden’s exports to Vietnam totaled USD 325.81 million, up 15.8% year-on-year. Major Swedish exports included:

Impact of the EVFTA

The EVFTA has significantly boosted Vietnam–Sweden trade by lowering tariffs and improving market access for Vietnamese products. For example, Vietnamese rice exports to Sweden rose from a few hundred thousand USD to over USD 3 million, thanks to improved competitiveness under the agreement. Similarly, agricultural and aquatic products, which received immediate zero-tariff access, have gained notable advantages.

For Swedish investors, the EVFTA has also made Vietnam more attractive as a production and investment hub, particularly as Swedish firms diversify their global supply chains.

However, despite the progress, bilateral trade between 2019–2023 has shown fluctuations due to macroeconomic challenges and limited utilization of EVFTA benefits—partly because Sweden recently experienced a mild recession.

To maximize the agreement’s potential, Vietnamese enterprises must strictly comply with rules of origin (RoO), maintain accurate HS codes, and ensure valid C/O (EUR.1) documentation. Failure in these areas could lead to the loss of tariff preferences.

Sweden’s high-income consumers are willing to pay premium prices for sustainable and innovative products, which encourages Vietnamese businesses to green their supply chains, improve product quality, and focus on value-added exports.

 The EVFTA has deepened the economic partnership between Vietnam and Sweden, enhancing trade, investment, and innovation linkages. As the two countries continue to expand cooperation in green technology, renewable energy, and digital transformation, Sweden is expected to remain a strategic partner for Vietnam in its sustainable growth journey.
Source:Vitic