Swedish Businesses Look to Expand Investments in Vietnam

According to a recent business climate survey conducted by Business Sweden and the Swedish Embassy in Vietnam, Swedish companies remain positive about Vietnam’s economic prospects despite the slowdown in 2023. Out of the 36 Swedish companies that participated in the survey, 44% expressed their intention to increase their investment in the country. While the survey provides a snapshot rather than a comprehensive overview, the participating companies represent a diverse range of industries.

In the professional services sector, all companies surveyed plan to stay in the market, with 56% indicating expansion plans. However, companies in the consumer segment displayed a more cautious outlook, as only 25% expressed plans for further investment in Vietnam, while 17% considered leaving the market.

The survey also revealed that 61% of Swedish companies reported a profitable financial year in 2022, with only 27% reporting break-even or losses. Although the number of profitable firms slightly decreased, the proportion of companies recording losses (8%) was the lowest seen in the last three years. Medium-sized companies performed particularly well, with 100% reporting a profitable year, while small companies faced more challenges, with 17% reporting losses. Newcomers to the market enjoyed a successful year, with 67% reporting profits and no firms experiencing losses.

While Swedish companies expressed concerns about their business in Vietnam due to conservative forecasts for the country’s economy in 2023, with only 47% expecting higher turnover compared to the previous year, they are hopeful for improved performance in the second half of the year, particularly with China relaxing its lockdown policy.

Prominent Swedish companies such as ABB, AstraZeneca, Atlas Copco, Electrolux, Ericsson, IKEA, Oriflame, SKF, Volvo, and Tetra Pak have already established a presence in Vietnam. With the European Union-Vietnam Free Trade Agreement in place, Swedish companies view Vietnam as an important destination for expanding their investments. Statistics from the Foreign Investment Agency under the Ministry of Planning and Investment indicate that Swedish investors injected nearly $168 million into Vietnam in the first half of 2023, including five newly registered projects worth $154.6 million.