Nordic Manufacturing Investment in Vietnam: Opportunities in High-Value Production

Nordic manufacturers are expanding investment in Vietnam’s high-value production sector, driven by supply chain diversification, sustainability, and growth opportunities.

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Nordic investment in Vietnam is entering a new phase, characterized by growing commitments to advanced manufacturing, green industry, and sustainable supply chains.

As global manufacturers continue to diversify production bases and strengthen supply chain resilience, Vietnam has emerged as an increasingly attractive destination for Nordic companies seeking long-term growth opportunities in Asia.

Recent investment trends suggest that Nordic investors are no longer viewing Vietnam solely as a low-cost manufacturing location. Instead, the country is increasingly being positioned as a strategic production hub capable of supporting higher-value manufacturing activities, technological innovation, and environmental sustainability.

Nordic investment momentum accelerates

Vietnam recorded strong foreign direct investment (FDI) growth in the first half of 2025, attracting US$21.5 billion in registered capital, up 32.6 percent year-on-year. Within this broader trend, Nordic investors have significantly increased their presence.

Sweden emerged as the third-largest source of newly registered investment capital, contributing approximately US$1 billion and accounting for 10.8 percent of all newly registered FDI during the period. The development signals growing confidence among Nordic businesses in Vietnam’s long-term economic prospects and manufacturing capabilities.

The expansion of Nordic investment reflects broader global supply chain restructuring trends. Companies are seeking to reduce concentration risks while establishing manufacturing operations in politically stable markets with strong trade connectivity. Vietnam’s extensive network of free trade agreements, competitive operating environment, and strategic location in Southeast Asia have made it an increasingly attractive destination for this diversification strategy.

Manufacturing remains the primary attraction

Manufacturing continues to receive the largest share of foreign investment entering Vietnam. The processing and manufacturing sector attracted more than 54 percent of newly registered capital in the first half of 2025, reinforcing its role as the country’s primary FDI destination.

For Nordic investors, however, manufacturing opportunities are evolving beyond labor-intensive production. Industry observers note a growing shift toward capital-intensive and technology-driven operations that prioritize efficiency, automation, sustainability, and supply chain integration.

This transformation aligns closely with the strengths of Nordic companies, many of which are global leaders in advanced manufacturing technologies, renewable energy solutions, industrial automation, and sustainable production practices. As Vietnam seeks to move up the value chain, these capabilities have become increasingly relevant.

According to discussions among Nordic business leaders, investment decisions are now driven less by labor cost advantages and more by Vietnam’s ability to support specialized production, skilled workforce development, and deeper integration into regional and global supply chains.

Green manufacturing drives new investment opportunities

One of the most significant developments in Nordic-Vietnam business relations is the growing focus on green manufacturing and sustainable industrial development.

Danish investors have become particularly active in sectors supporting Vietnam’s energy transition and sustainability agenda. Companies including LEGO, Vestas, Ørsted, and COWI have expanded their presence through projects related to renewable energy, industrial infrastructure, logistics, and engineering services.

Among the most notable investments is LEGO’s manufacturing facility in Binh Duong Province, valued at between US$1 billion and US$1.3 billion. Officially inaugurated in 2025, the facility represents LEGO’s sixth factory globally and its first carbon-neutral manufacturing site in Vietnam. The project is expected to operate entirely on renewable energy and support the development of greener supply chains across the region.

The project illustrates how Vietnam is increasingly attracting investment aligned with environmental, social, and governance (ESG) standards – an area where Nordic investors traditionally place strong emphasis. As multinational companies face increasing pressure to decarbonize operations and improve supply chain sustainability, Vietnam’s green transition initiatives could further strengthen its appeal among Nordic manufacturers.

Vietnam-Nordic manufacturing trade highlights

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Trade data from 2025 and the first five months of 2026 indicate that manufacturing remains the backbone of Vietnam’s economic relationship with the Nordic region. Sweden, Denmark, Norway, and Finland collectively import a diverse range of Vietnamese manufactured products, ranging from electronics and machinery to textiles, footwear, and industrial materials.

The trade structure also highlights growing complementarities between Vietnam’s manufacturing capabilities and Nordic demand for both consumer and industrial goods, creating a strong foundation for future investment cooperation.

Electronics lead Vietnam’s exports to the Nordic region

High-tech manufacturing continues to account for a significant share of Vietnam’s exports to Nordic markets, particularly Sweden.

Key trends include:

• Sweden imported more than US$538 million worth of phones and components from Vietnam between 2025 and the first five months of 2026, making it the largest electronics export category among Nordic markets.
• Exports of computers, electronic products, and components to Sweden exceeded US$265 million during the same period.
• Finland also maintained demand for Vietnamese electronics, importing over US$16 million worth of computers and electronic products.

The strong performance of electronics exports reflects Vietnam’s expanding role in global technology supply chains and its growing attractiveness as a production base for multinational manufacturers.

Traditional manufacturing remains competitive

Labor-intensive manufacturing sectors continue to serve as important export drivers across the Nordic region.

Major export categories include:

• Textiles and garments, with Sweden and Denmark remaining the largest Nordic destinations.
• Footwear exports to Sweden, Norway, and Finland, supported by Vietnam’s established supplier ecosystem and export-oriented production base.
• Wood products and furniture components, particularly in trade with Denmark.

The continued strength of these sectors demonstrates Vietnam’s ability to maintain competitiveness in traditional manufacturing while simultaneously moving toward higher-value industries.

Denmark emerges as a growing market for industrial products

Recent trade data suggest rising Nordic demand for Vietnamese industrial and intermediate goods.

Notable developments include:

• Exports of iron and steel products to Denmark reached US$34.7 million in the first five months of 2026, surpassing the total recorded for all of 2025.
• Iron and steel products became Denmark’s largest import category from Vietnam during the period.
• Sweden also increased imports of Vietnamese metal products, indicating broader opportunities for industrial suppliers.

This trend reflects the increasing integration of Vietnamese manufacturers into European industrial supply chains and highlights opportunities for investment in metal processing and supporting industries.

Transport equipment exports gain momentum

Transport vehicles and spare parts have emerged as a niche but growing export segment.

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Key developments include:

• Finland imported nearly US$22 million worth of transport vehicles and spare parts during the first five months of 2026, making it the country’s largest import category from Vietnam.
• Norway continues to be an important market for Vietnamese transport equipment, following strong import levels recorded in 2025.

The growth of this segment aligns with Vietnam’s broader efforts to upgrade manufacturing capabilities and expand production of higher-value industrial products.

Machinery trade reflects deepening industrial linkages

Machinery and equipment trade illustrates the increasingly interconnected manufacturing relationship between Vietnam and Nordic economies.

On the export side:

• Sweden, Finland, Denmark, and Norway all imported substantial volumes of Vietnamese machinery and industrial equipment.
• Sweden alone imported more than US$212 million worth of machinery and equipment from Vietnam during the 17-month period.

On the import side:

• Vietnam imported significant volumes of machinery, tools, and spare parts from Denmark, Sweden, and Finland.
• Danish machinery exports to Vietnam exceeded US$80 million during the first five months of 2026, while imports from Finland and Sweden also remained substantial.

These two-way trade flows highlight how Nordic technology and engineering expertise support the modernization of Vietnam’s manufacturing sector, while Vietnam increasingly supplies finished industrial products to Nordic markets.

Opportunities and challenges ahead

While opportunities remain substantial, Nordic investors are also encountering a more competitive and sophisticated business environment.

Business leaders note that success in Vietnam increasingly depends on execution capabilities, localization strategies, and talent development rather than market entry alone. Companies must adapt to changing consumer preferences, evolving regulatory requirements, and rising competition from both domestic and international firms.

At the same time, Vietnam continues to improve its attractiveness through infrastructure development, industrial park expansion, workforce upskilling, and regulatory reforms. These efforts are expected to support the country’s ambitions to attract more technology-intensive and sustainable manufacturing projects.

Outlook

The recent rise in Nordic investment reflects Vietnam’s transition from a low-cost manufacturing base to a hub for high-value, sustainable, and technology-driven production. As trade between Vietnam and Nordic countries expands beyond traditional sectors into electronics, machinery, and industrial goods, opportunities for deeper manufacturing integration continue to grow.

For Nordic companies, Vietnam’s industrial upgrading, strong export performance, and growing manufacturing ecosystem offer a strategic platform for long-term expansion in Asia. As supply chain diversification and sustainability priorities reshape global investment trends, Nordic participation in Vietnam’s manufacturing sector is expected to strengthen further.

For international investors, Vietnam's different localities offer favorable conditions across almost every sector, particularly as the country shifts toward higher value-chain manufacturing, high-tech industries, and innovation. Taking a closer look at Vietnam's provinces and investment destinations before committing capital can provide a decisive competitive advantage. A tailored market study, dedicated location selection, or business matchmaking can uncover factors that are often hard to assess—such as special incentives, skilled labor availability, and tax breaks.

Huyen Do

Manager, Business Intelligence Vietnam

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