Swedish businesses partner with Vietnam to enhance innovation capacity

Swedish businesses maintain a strong interest in the Vietnamese market.

More than 55 years after Sweden became the first Western country to establish diplomatic relations with Vietnam, the relationship is entering a new chapter that is increasingly shaped by trade, investment, innovation and the green transition.

According to the Business Climate Survey 2026 released on June 11, conducted by Business Sweden and the Embassy of Sweden in Vietnam, Swedish companies continue to report stable performance and strong long-term interest in the market, despite a more uncertain global environment.

“Vietnam has developed into one of the most dynamic economies in Southeast Asia, and the long-standing relationship between Sweden and Vietnam provides a strong foundation for deeper economic cooperation. Swedish companies bring not only investment but also experience in sustainable solutions and innovation that support Vietnam’s continued development,” says the Ambassador of Sweden to Vietnam Johan Ndisi.

Vietnam’s economy performance continues to support investor confidence. In 2025, GDP growth reached 8.02% per cent, outperforming earlier projections and reinforcing the country’s position among the world’s fastest-growing economies. This follows a solid growth of 7.09% in 2024, already above international institutions.

Swedish companies share this positive trajectory. In 2026, 61% expect industry turnover to increase. Together with 81% recorded in 2025 the last two years reflect a stable and forward-looking business sentiment.

Sweden aims to play a constructive role as a long-term partner in Vietnam’s development, contributing through trade, investment and knowledge exchange. The survey also highlights the strength of Sweden’s reputation in Vietnam, with 81% of Swedish companies confirming that “Brand Sweden” supports their business, reflecting positive associations with high quality, sustainability, and innovation.

This is reinforced by strong local partnerships and long-standing presence in key sectors aligned with Vietnam’s development priorities, such as health, infrastructure and trusted connectivity contributing to the green and digital transformation.

Vietnam’s deep integration in global value chains continue to attract both new investors and old projects expanding their operations. Nearly half of Swedish firms in the 2026 survey established their presence after 2020, underlining the market’s increasing attractiveness.

In 2026, 50% of Swedish companies plan to increase their investments. Although slightly down from 59% in 2025, this figure indicates sustained confidence in Vietnam’s long-term growth potential and a resilient investment outlook.

“The survey confirms what we see on the ground: Swedish companies are taking a long-term, steady approach to Vietnam. There is a willingness to invest, but also a clear focus on building sustainable and locally anchored operations. Continued improvements in the regulatory environment would further strengthen Vietnam’s already strong position as an investment destination”, says Marcus Persson, Trade Commissioner of Sweden to Vietnam.

Improving business climate with remaining challenges

The survey shows a notable improvement in the overall business environment. In 2026, 67% of the companies describe the business climate as good or very good, compared to 46% in 2025.

Swedish companies report high satisfaction with Vietnam’s strong supplier base, reliable distribution networks, and overall sense of safety as key advantages. These factors continue to make the country an increasingly attractive place to operate.

At the same time, challenges remain. Companies point to customs procedures, licenses processes and regulatory complexity as areas requiring further improvement. These findings are consistent with the 2025 survey, where 40% of companies identified customs procedures as a major obstacle, indicating that administrative simplification remains an important priority for reform.

Sustainability transition gaining momentum

Vietnam’s commitment to achieving net-zero emissions by 2050 is increasingly reflected in business activity. However, the survey indicates that sustainability is still evolving in practice. In 2026, 59% of companies report that environmental factors influence customers purchasing decisions.

Swedish companies are actively supporting Vietnam’s green transition, particularly in renewable energy and sustainable industrial solutions. At the same time, they emphasize the importance of clearer regulatory frameworks and improved infrastructure to accelerate progress.

Outlook: strong fundamentals with scope for reform

The findings confirm Vietnam’s position as a dynamic and attractive market for Swedish companies. Continued progress on regulatory transparency, administrative efficiency, and infrastructure will be important to sustain momentum and unlock further investment.

Overall, Swedish companies view Vietnam as a long-term partner and growth market. With sustained investment interest, strengthening business sentiment, and expanding opportunities across sectors, Swedish companies remain committed to supporting Vietnam’s economic development, innovation capacity, and sustainable transformation.

“

The Business Climate Survey 2026 is conducted annually by Business Sweden in collaboration with the Embassy of Sweden in Vietnam. The survey captures the perspectives of Swedish companies operating in the Vietnamese market, covering areas such as business performance, investment plans, market conditions and key challenges.

The 2026 edition is based on responses from 33 Swedish companies across a range of industries, providing a snapshot of business sentiment and insights into opportunities and obstacles in the Vietnamese market.

Copyright belongs to the Vietnam Journal of Science and Technology (VJST-MOST)