Strong partnership and cooperation moving forward

Swedish Ambassador to Vietnam Ann Mawe

Vietnam-Sweden trade has grown on a stable basis in recent years, reaching US$1.5 billion in 2021. Could you share the result of 2022?

Vietnam and Sweden have long-standing, good relations in a wide range of fields, from economy, trade and investment to culture and education. In the past, bilateral trade tied to manufacturing, engineering, pharmaceuticals, home appliances, and environmental technologies. Today, trade between the two countries has been expanded in many ways to other fields based on the potential and mutual interests.

In 2022, Vietnam and Sweden continued to achieve significant results in bilateral trade and investment. You can see strong presence of Swedish companies in Vietnam. Some Sweden-based multinational companies already came to Vietnam in the beginning of 1990s. To date, we have over 70 Swedish companies well established in Vietnam. Many of them are successful business models in the local market with many expanding operations here.

As soon as Vietnam reopened after the COVID-19 pandemic, many small and medium Swedish enterprises, startups and technology unicorns joined the Vietnamese market.

How do you rate the effect of the EU-Vietnam Free Trade Agreement (EVFTA) on Vietnam’s trade and investment with Sweden?

The EVFTA benefits both sides. First of all, it minimizes tariff barriers and encourages Vietnam to simplify business conditions, increasing investor trust in the country. The trade deal creates opportunities for Swedish companies in Vietnam to expand production and reduces/removes taxes for their exports to the EU.

Given commitments in the EVFTA, the two sides should promote dialogue in order to facilitate Swedish investment in Vietnam. The Swedish Embassy often receives investors’ questions about procedures required for their access to the Vietnamese market. I have seen the Vietnamese government’s efforts to simplify these procedures and strive to make them more transparent and predictable. This will increase Swedish companies’ confidence and long term vision to do business or to trade with Vietnam.

How do you see economic cooperation and trade between Vietnam and Sweden in 2023? What will the embassy do to promote bilateral relations?

The Swedish government’s goal is to increase trade with Vietnam. Given the results achieved in 2022, I think there will be good prospects for bilateral trade and investment in 2023. Innovation and sustainability among others will be the pillars of bilateral cooperation.

The Swedish Ambassador (second from left) together with other delegates at the recent technical workshop: Energy Transition - Role of the Power System

Sweden can contribute to Vietnam’s economic development by increased trade ties, the exchange of practical business solutions and technology transfer. The main areas where Sweden and Swedish companies have interests are in aviation and green, smart energy solutions.

The Vietnamese aviation sector is experiencing explosive growth with new and upgraded airports. Meanwhile, Sweden has an advanced air transport system and overall solutions to resolve problems challenging sustainable development. We will exchange information with the Vietnam Air Traffic Management Corporation (VATM) and the Airports Corporation of Vietnam (ACV) and propose air transport solutions.

We support and appreciate Vietnam’s commitments at the recent UN Climate Change Conference (COP 26), and believe in the prospects for bilateral cooperation in energy. Vietnam is targeting a reduction in coal-fired power generation while boosting renewable energy development. Sweden and other EU countries support this strategic orientation of Vietnam.

We have energy companies that can provide solutions to upgrade or automate the national power grid to facilitate the development of renewable energy resources. We also have advanced companies in the field of renewable energy transition. We will work very closely with Vietnam Electricity (EVN) and the National Power Transmission Corporation (EVN-NPT) to contribute to the development of the Vietnamese energy sector.

Together with Swedish agencies and companies, we will continue implementing “Pioneer the Possible” targeting Vietnamese businesses, decision-makers, innovators and university students, aiming to share our practical experience in the fields of co-creation, innovation and sustainability.

Sweden has dynamic industries and is a world-leading country when it comes to innovation, while Vietnam has recorded strong growth and is striving to improve its position in global value chains. Therefore, the two countries can complement each other’s strengths and competitiveness in these fields