Vietnam an attractive destination for Northern European firms: ScandAsia hinh anh 1At a sea port in the northern port city of Hai Phong (Photo: VNA)

Hanoi (VNA) –
High economic growth and strong investment in infrastructure are among the reasons for Northern European businessmen to consider when choosing to invest in Vietnam, according to an article recently published on the site ScandAsia, which covers Nordic news and business promotion in Asia.

The article said Swedish exports to Vietnam have increased by almost 6 percent by 2020, despite the COVID-19 pandemic.

Emil Akander, Business Sweden’s acting country manager in Vietnam, was cited as saying the growing export was thanks to several factors, particularly the rapid increase of the Vietnamese middle class’s purchasing power.

He explained that 30 million Vietnamese will belong to the country’s middle class by 2025, which is almost a doubling since 2012.

The official said at the same time, Vietnam sees major investments being made in infrastructure and health care.

Airports and the subway in the country's two biggest hubs Hanoi and Ho Chi Minh City are being expanded, new hospitals built, and major investments made in new energy. These sectors are strengths of Swedish firms, he added.

Johan Fredriksson, country analyst at the Swedish Export Credit Agency (EKN), noted Vietnam was one of a handful of countries whose economies grew even during the pandemic year of 2020. And according to forecasts from the World Bank and IMF, continued growth is expected at around 6-7 percent per year, he noted.

Today, several conglomerates and large industrial companies from Sweden, including H&M, ABB, Tetrapak, Sandvik, SKF,  and Ericsson, are operating in Vietnam.

According to him, the door is also open for small- and medium-sized companies. He highlighted opportunities for the groups to establish themselves in the country as subcontractors./.