Vietnam an attractive destination for Northern European firms: ScandAsia
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./.