Prime Minister’s visit to Sweden to lay solid foundation for more robust economic partnership

In a recent interview with VGP, Persson said, the Prime Minister's upcoming visit to Sweden presents a valuable opportunity to deepen the longstanding friendship and cooperation between Viet Nam and Sweden, especially in the areas of economic and trade relations.

Sweden and Viet Nam share a strong and long-standing bilateral relationship, with Sweden being the first Western country to establish diplomatic relations with Viet Nam in 1969.

Following the visit of Benjamin Dousa, Minister of International Cooperation and Foreign Trade of Sweden to Viet Nam last month, the visit of Prime Mínister Pham Minh Chinh marks another important milestone in the relationship between senior leaders of the two countries, thereby opening up more frequent exchanges and visits between ministries, sectors, localities, businesses and people of the two sides.

Furthermore, the visit may lead to new trade and investment agreements and business forums that can strengthen bilateral ties between both economies.

"I expect the two sides to explore enhanced collaboration in key sectors such as green energy, digital transformation, healthcare, and sustainable solutions in transportation—areas where Sweden has strong expertise and Viet Nam has a growing demand", shared the Country Manager.

Persson said he expects a deepened Viet Nam–Sweden cooperation in trade and economics following Prime Minister Pham Minh Chinh's visit. The visit will open the door for more strategic collaboration in high-impact sectors including infrastructure, healthcare, and energy projects.

Viet Nam has positioned itself as a gateway for Swedish goods to enter the broader ASEAN market, while Sweden is seen as a bridge for Vietnamese products to access Northern Europe.

In recent years, despite global turbulence, Swedish businesses have demonstrated a strong interest in Viet Nam's market. Notable developments include the launch of Trelleborg Sealing Solutions' new 8,000-square-meter facility in Dong Nai, Hestra Gloves' investment of US$9 million in a production site in Hai Phong, and Autoliv's establishment of a state-of-the-art airbag manufacturing plant in Quang Ninh.

Prominent Swedish firms such as Assa Abloy, ABB, and Polarium also maintain a significant presence in Viet Nam, reflecting their long-term commitment and confidence in the country's economic potential. On the other side, Vietnamese enterprises are also expanding their footprint in Sweden, as seen in FPT's recent openings of offices in Gothenburg and Stockholm.

With continued high-level exchanges and policy alignment, Viet Nam–Sweden trade and investment cooperation is poised for substantial growth.

Promoting development of structured and forward-looking cooperation mechanisms

According to the Country Manager of Business Sweden, Vietnamese goods hold considerable potential to expand their presence in the Swedish market, supported by several strategic advantages.

The EU-Viet Nam Free Trade Agreement (EVFTA) has significantly reduced tariffs and trade barriers, offering Vietnamese exporters a more favourable and competitive entry into Sweden and the broader European Union.

Additionally, Viet Nam'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 labor practices, which may pose compliance difficulties for some Vietnamese producers.

For example, carbon border adjustment mechanism (CBAM) will pose directly impact on 6 industrial sectors that emit a lot of carbon including iron and steel, cement, fertilizer, 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, Viet Nam high-quality products including specialty coffee, agricultural products, garment 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 further strengthen bilateral economic, trade, and investment relations, Persson suggested that Sweden and Viet Nam should prioritize the development of structured and forward-looking cooperation mechanisms.

First, both countries could establish a bilateral economic and trade dialogue platform at the senior official level to regularly review progress, address challenges, and identify new areas of collaboration, particularly in green technology, digital transformation, and smart infrastructure—areas where Sweden has strong expertise and Viet Nam has growing demand.

Additionally, expanding capacity-building programs, such as leadership training and technical assistance, would help align standards and practices, especially in regulatory compliance and sustainable development.

Finally, leveraging the EVFTA more effectively through targeted outreach and support for small and medium-sized enterprises (SMEs) can unlock greater trade and investment flows. The two countries should support small and medium-sized enterprises from both sides, connecting them through business matching platforms, joint exhibitions and digital trade networks.

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

Business Sweden identifies efforts to promote sectors aligned with Viet Nam's development priorities

Persson said, Business Sweden has played a pivotal role in fostering economic ties between Sweden and Viet Nam by actively supporting Swedish enterprises seeking to invest and expand in the Vietnamese market.

Business Sweden provides strategic advisory services, market insights, and facilitates delegations to help Swedish companies navigate Viet Nam'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", he noted.

In recent years, Business Sweden has intensified its efforts to promote sectors aligned with Viet Nam's development priorities, including green energy, digital transformation in the healthcare system, and smart solutions for infrastructure projects.

The agency has 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, Business Sweden has organized 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 (SIMP). This annual initiative equips participants with practical tools and insights to bridge the gap between sustainability ambitions and actionable strategies", told the Country Manager of Business Sweden.

These initiatives not only enhance Sweden's commercial presence in Viet Nam but also contribute significantly to the broader goal of strengthening bilateral economic cooperation and sustainable development, he stated./.