Vietnam and Sweden Seek to Boost Trade

Minister of Industry and Trade Nguyen Hong Dien received Ann Måwe, Swedish ambassador to Vietnam. Photo: Ministry of Industry and Trade

This is a favorable condition for the business communities of the two countries to build and strengthen the relationship and diversify supply chains, especially for the industries and commodities in which one country has strengths, the other has needs and vice versa.

This information was emphasized by Minister of Industry and Trade Nguyen Hong Dien at the meeting with Ann Måwe, ambassador of Sweden to Vietnam on May 9, in Hanoi.

At the meeting, Ministers Nguyen Hong Dien and Ann Måwe reviewed the cooperation between Vietnam and Sweden as well as activities of Swedish businesses in Vietnam.

The two sides discussed Sweden's planned activities for 2023 in supporting the green energy transition in Vietnam and the possibility of organizing high-level missions on the 55th anniversary of the diplomatic relations between Vietnam and Sweden in 2024.

Sweden is a high-income country with a large market and potential consumption. This is reflected in the exports from Vietnam to Sweden in recent years reaching over US$1 billion and growing steadily.

According to Minister Nguyen Hong Dien, global difficulties and challenges require the two countries to cooperate more closely and effectively, especially in trade and investment. This helps them cope and improve the resilience of each economy, especially effectively exploiting the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA).

Ann Måwe, ambassador of Sweden to Vietnam, said that Sweden always showed its desire to strengthen cooperation with Vietnam in energy and sustainable development.

As a Nordic country at the forefront of innovation and sustainable development, Sweden has hands-on experience and businesses with technological solutions to pioneer and accelerate the green transition.

Ann Måwe informed Minister Nguyen Hong Dien that the Swedish Development Finance Institution (Swedfund) wishes to support Vietnam, specifically Vietnam Electricity (EVN) with grants for research and smart grid development.

Talking about energy issues, the Minister of Industry and Trade said that the implementation of the Just Energy Transition Partnership (JETP) is one of the important solutions for the energy transition in Vietnam.

However, information about the support package worth more than US$15.5 billion from developed countries for Vietnam to switch from coal to clean energy is still unclear. Meanwhile, to successfully implement JETP, it is necessary to have a more specific roadmap as well as a mechanism to realize ideas and commitments with specific actions and projects.

Vietnam proposed developed countries, including the European Union and Sweden, to develop specific funding packages to support Vietnam in energy transformation.

Vietnam wanted them to soon come up with a roadmap and necessary mechanism for this capital to be disbursed and put into effective use soon.

Vietnam wished to receive support in training human resources for new energy and new industries, with specific training programs. Thereby, it is possible to build high-quality human resources capable of implementing energy transformation ideas in Vietnam, ready to receive new technologies that developed countries can transfer.

Minister of Industry and Trade Nguyen Hong Dien spoke at the event. Photo: Ministry of Industry and Trade

The year 2024 marks the 55th anniversary of the diplomatic relations between Vietnam and Sweden.

Minister Nguyen Hong Dien and Ambassador Ann Måwe expressed their hope that the two countries could establish high-level exchange missions and activities to promote bilateral relations in trade, industry and energy.

According to data from the General Department of Vietnam Customs, in 2022, Vietnam exported to Sweden US$1,264 million, up 5.4% and imported US$353 million, up 9.9%. Total turnover reached US$1,617 million, up 6.3% compared to 2021.

Particularly in the first quarter of 2023, under the negative impact of escalating inflation, the risk of a global economic recession and a drop in demand in the EU market, the two-way import and export turnover reached US$331 million, down 16. 8%. Export turnover reached US$253 million, down 16.5%, import turnover reached US$78 million, down 17.9% over the same period in 2022.

Regarding investment, by the end of March 2023, Sweden ranked 29th among 143 countries and territories investing in Vietnam with 103 valid projects, total investment capital of more than US$680 million.

Currently, more than 70 Swedish businesses have offices in Vietnam. They continue to expand investment, production and business in many fields such as information technology and telecommunications, electricity, mechanical machinery, automobile industry and mining.

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