New Horizons for Trade and Investment between Vietnam and Scandinavian Countries

In 2025, Vietnam’s economic ties with Scandinavian countries are entering a new phase. Longstanding relations built on open trade and development assistance are evolving into deeper economic partnerships, anchored in sustainability, green technology, and advanced manufacturing.

The trade and investment landscape between Vietnam and Scandinavian countries has witnessed significant growth in recent years, despite remaining modest compared to Vietnam’s larger partners.

As of 2025, Vietnam’s trade with Sweden, Denmark, and Norway shows promising growth, particularly in sectors such as renewable energy, advanced manufacturing, and high-value goods. These partnerships, bolstered by agreements like the EU-Vietnam Free Trade Agreement (EVFTA), signify a shift towards deeper economic collaboration and mutual growth in the region.

Trade and investment performance

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Vietnam’s trade with Scandinavian countries is still modest compared to its main partners in Asia and the West, but it has grown substantially recently. While the trade volume remains low compared to Vietnam’s exchanges with the US, China, or South Korea, the growth trend is strong, showing double-digit increases in multiple sectors. Notably, trade is increasingly focused on sustainability-related products like organic foods, renewable energy parts, and green technologies.

Sweden – Vietnam’s gateway to EU market

According to Vietnam’s WTO Center, Sweden is a potential gateway for Vietnamese goods to the wider EU market, given its advanced logistics hubs and trade networks. Bilateral trade reached nearly US$1.5 billion in 2024, a 14.3 percent increase compared to 2023.

Vietnam primarily exports traditional yet high-value goods such as textiles, footwear, seafood, wooden products, handicrafts, phones and components, computers, and electronic products, with electronics, telecommunications, and textiles making up the largest shares.

Meanwhile, Vietnam imports high-tech goods from Sweden, including machinery, equipment, pharmaceuticals, chemical products, and various types of paper. In 2024, these imports reached US$143.7 million for machinery and equipment, more than 33 percent of total imports, and US$113.4 million for pharmaceuticals.

In terms of investments, Swedish-registered investment in Vietnam reached over US$1.02 billion in the first seven months of 2025, a sharp increase from just US$168,000 during the same period in 2024. This surge has made Sweden the largest Scandinavian investor in Vietnam, surpassing Denmark (US$83.91 million) and Norway (US$760,000), and it ranks as the eighth-largest overall among foreign investors.

Cumulative Swedish investment now totals more than US$1.76 billion across 111 projects, There are about 70 companies active in Vietnam, including major names like Tetra Pak, AstraZeneca, Ericsson, ABB, IKEA, Volvo, and H&M. Swedish investments are concentrated in manufacturing, pharmaceuticals, information and communications technology, and renewable and green energy. This reflects the country’s growing economic footprint in Vietnam amid shifts in global investment.

See also: Vietnam-Sweden Trade Overview in 2025

Vietnam–Denmark trade grows on the Comprehensive and Green Strategic Partnership

In 2024, total goods trade between Vietnam and Denmark reached US$676.35 million, marking a 20.3 percent increase compared to 2023. The steady growth reflects the deepening cooperation between the two countries, which has expanded across multiple sectors since the establishment of the Comprehensive Partnership and the Green Strategic Partnership.

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Vietnam’s exports to Denmark totaled US$444.37 million, led by traditional strengths such as textiles, electronic components, furniture, steel products, leather goods, and seafood, with steel products recording the highest growth of 104.7 percent. On the import side, Vietnam sourced mainly machinery and equipment (31 percent of total imports), followed by chemical products (10.8 percent), pharmaceuticals (9 percent), and seafood (4.3 percent).

Denmark also plays an important role in supporting Vietnam’s sustainable development and climate resilience goals. Danish businesses are currently involved in 169 investment projects in Vietnam, with total registered capital approaching US$2 billion, ranking 22nd among 148 countries and territories, and further growth is expected in key advantage sectors.

The two countries have also established a solid institutional framework through specific action plans to effectively implement their existing partnership, focusing on areas such as trade, investment, renewable energy, education, healthcare, and the environment.

See also: Vietnam-Denmark Relations: Trade, Investment, and Opportunities

Vietnam-Norway trade expands on green and digital cooperation

Vietnam-Norway total trade amounted to US$653 million in 2024 and approximately US$250 million in the first four months of 2025, reflecting a 38.3 percent year-on-year increase. Vietnam primarily exported electronics, seafood, and garments to Norway, while importing fish feed, fertilizers, and machinery from the counterpart.

As of the end of April 2025, Norway had 60 valid investment projects in Vietnam with total registered capital exceeding US$202 million. Norwegian investments are concentrated in sectors such as maritime engineering, aquaculture, renewable energy, and high-tech manufacturing.

Both countries have been actively involved in bilateral efforts to facilitate sustainable trade growth in the digital era. At the eighth Trade Policy Review of Norway held at the WTO headquarters in June 2025, Vietnam’s Permanent Mission in Geneva commended Norway’s transparent investment environment and its initiatives to facilitate digital trade, including mandatory electronic data exchange under VAT regulations for e-commerce.

Vietnam also recognized Norway’s commitment to sustainability and green growth, particularly through the 2024 Sustainable Products Act and updates to public procurement rules that embed ESG principles into trade policy.

See also: Vietnam-Norway Relations: Trade, Investment, and Business Opportunities

Regulatory frameworks and trade agreements

Vietnam’s trade with Denmark and Sweden benefits directly from the EVFTA, which came into force in August 2020. The agreement eliminates 99 percent of tariffs over a transition period, improves market access for services, and includes binding commitments on labor and environmental standards.

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For Norway, which is not part of the EU but belongs to the European Free Trade Association (EFTA), trade is governed through the Vietnam-EFTA Free Trade Agreement negotiations. Talks have progressed but not yet concluded. Meanwhile, Vietnam-Norway trade continues under WTO rules, with both sides emphasizing open trade policies. At Vietnam’s WTO Trade Policy Review in 2024, Norway was praised for its supportive stance toward multilateralism and open market commitments.

At the regional level, Vietnam’s participation in the RCEP, the world’s largest trade bloc, further integrates it into Asian value chains. While Scandinavian countries are not members, the agreement indirectly benefits their businesses by lowering supply chain costs and improving Vietnam’s connectivity to Asia-Pacific markets.

Together, EVFTA and RCEP position Vietnam as a uniquely strategic partner for Scandinavian exporters seeking access to both the European and Asian markets.

State-level incentives and bilateral cooperation

Beyond multilateral frameworks, Vietnam and the Scandinavian countries have strengthened their economic partnerships through a series of targeted bilateral agreements.

Sweden, marking 55 years of diplomatic relations with Vietnam in 2024, remains one of the country’s long-standing development partners, particularly in governance, health, and education. Cooperation has evolved toward innovation, green technology, and digital transformation, supported by Swedish development finance institutions and trade promotion agencies.

Denmark has advanced collaboration with Vietnam under the Comprehensive Partnership and Green Strategic Partnership, focusing on renewable energy, climate adaptation, and sustainable agriculture. Danish expertise in offshore wind has positioned the country as a key partner in Vietnam’s clean energy transition.

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Norway continues to work closely with Vietnam in fisheries management, maritime sustainability, and climate resilience. Norwegian businesses are increasingly active in aquaculture and logistics, sectors where Vietnam’s growth potential aligns with Norway’s technological strengths.

On Vietnam’s side, incentives for foreign investors include preferential tax regimes, land-use rights, and support for high-tech and environmentally friendly projects. Scandinavian investors, known for their strong governance standards and commitment to sustainability, are well-positioned to benefit from Vietnam’s drive toward green and high-quality foreign investment.

Opportunities for Scandinavian firms in Vietnam

Renewable energy and green technology

Vietnam’s rapid growth has fueled surging electricity demand, with the government targeting renewables to account for over 30 percent of capacity by 2030. Denmark, a global leader in offshore wind, has already signed multiple MOUs with Vietnam to develop large-scale offshore wind farms. Swedish and Norwegian expertise in bioenergy, hydropower, and energy efficiency also aligns with Vietnam’s push for cleaner energy solutions.

Fisheries and aquaculture

Norway, a powerhouse in aquaculture technology, sees synergies with Vietnam, one of the world’s largest seafood exporters. Collaborations in fish feed, cold storage, and sustainable aquaculture practices could strengthen Vietnam’s export competitiveness while ensuring resource sustainability.

Healthcare and pharmaceuticals

Sweden and Denmark both have strong pharmaceutical sectors, with Novo Nordisk (Denmark) already investing in Vietnam. Rising healthcare demand, coupled with government incentives for pharmaceutical manufacturing, creates long-term opportunities.

Manufacturing and logistics

Scandinavian companies with advanced automation and clean manufacturing technologies can benefit from Vietnam’s growing role as a global manufacturing hub. Denmark and Sweden’s expertise in logistics, ports, and supply chain solutions is also relevant as Vietnam develops into a regional trade and logistics center.

Digital economy and smart cities

Swedish and Danish firms are well-positioned to contribute to Vietnam’s digital economy, from fintech to smart city infrastructure. Sweden’s strengths in ICT and Denmark’s green urban solutions align with Vietnam’s smart city initiatives in Hanoi, Ho Chi Minh City, and Da Nang.

Considerations for businesses

While opportunities are expanding, several challenges continue to shape Vietnam–Scandinavia trade relations. Trade volume remains modest compared to Vietnam’s major partners, limiting economies of scale and visibility. Regulatory complexity under the EVFTA, particularly concerning labor, environmental, and intellectual property standards, demands consistent corporate commitment, while geographical distance contributes to longer shipping times and higher logistics costs than intra-Asia trade.

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However, there are two faces of a coin. Despite the current modest scale, Scandinavian expertise in innovation and sustainability gives the region a distinct advantage in Vietnam’s evolving market. Both sides are shifting from traditional trade in garments and seafood toward high-value collaboration in green energy, healthcare, and digitalization, which open up abundant opportunities for trade and investments.

Similarly, though presenting compliance challenges, the EVFTA offers a strong framework for Denmark and Sweden, while Norway’s multilateral approach helps deepen sectoral cooperation with Vietnam. Additionally, as Vietnam continues to integrate into global supply chains through RCEP and other trade agreements, opportunities for Scandinavian firms are expected to widen, especially in sustainability-driven and technology-oriented industries.

With strategic partnerships, such as Denmark’s Green Strategic Partnership and Sweden’s innovation cooperation, economic ties are set for deeper integration. For Scandinavian businesses, Vietnam is increasingly seen not as a low-cost production base but as a forward-looking partner in building sustainable, high-tech, and future-ready industries.

(With inputs from Vu Nguyen Hanh.)

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