Vietnam - Sweden trade growing steadily: Official

A wood product factory in Vietnam (Photo: VNA)

Hanoi (VNA) – Trade between Vietnam and Swedenhas been growing steadily for many years, with the North European country’s importsrising 9% annually during 2018 - 2022, a relatively impressive figure, anofficial has said.

The figure of the Swedish international trade centre wascited by Nguyen Thi Hoang Thuy, Trade Counsellor at Vietnam’s Trade Office inSweden and Northern Europe.

In 2022, bilateral trade stood at 1.617 billion USD, up 6.3%year on year. That consists of 1.264 billion USD in Vietnam’s exports to and 353million USD in imports from Sweden, respectively increasing 5.4% and 9.9%,according to the General Department of Vietnam Customs.

Vietnam’s main exports to Sweden include telephones,computers, other electronic devices and components, textile - garment, footwear,steel products, and spare parts. Meanwhile, imports include telecommunicationsdevices, machinery, equipment, and pharmaceuticals.

Last year was full of difficulties for the global economy dueto prolonged impacts of many big changes like the Russia - Ukraine conflict,China’s zero-COVID policy, and the policy response to inflation in manycountries, leading to decreased consumption demand and imports.

As a result, Vietnam witnessed a sharp fall in the shipmentsof many key products, and exports to Sweden also declined strongly in 2023. However, it still ranked second among the biggest Asian exporters to Sweden, afterChina, she added.

Thanks to the EU - Vietnam Free Trade Agreement (EVFTA), signed on June30, 2019, and coming into force on August 1, 2020, trade opportunities between Vietnamand the EU, including Sweden, are considerable, the official opined.

She perceived that the EVFTA has surely helped mitigate externaladverse impacts on the Vietnamese economy, which can be seen in the competitiveedge generated by preferential tariffs for Vietnamese goods in the Swedishmarket.

Vietnamese Prime Minister Pham Minh Chinh (L) and his Swedish counterpart Ulf Kristersson meet on the sidelines of COP28 in Dubai on December 2, 2023. (Photo: VNA)

For example, Vietnam previously exported just over 100,000USD worth of rice at the maximum to Sweden as it was unable to compete with Cambodianand Thai grain prices. However, rice shipments to this market have surpassed 3million USD and are on the rise.

Besides, the FTA has not only brought about tariff benefits but also inspiredSwedish firms’ interest in the Vietnamese market, especially when they areseeking new markets to shift investment and business activities to, she went on.

TheTrade Counsellor also pointed out many challenges to Vietnamese businesses in Sweden,including a small market, high requirements for goods, a lack of direct airroutes, and the absence of seaport and airport partnerships. Vietnamese goodsalso have to comply with stringent regulations such as rules of origin, environmentalstandards, and technical criteria to enter the EU in general and Sweden inparticular.
         
Once overcoming these difficulties, Vietnamese goods will gain a firmfoothold in Sweden and the EU, Thuy said.

She added her office is planning a number of activitiesto be held on the sidelines of coming high-level mutual visits such as abilateral business forum, meetings with potential investors, and a Vietnamesegoods week in Sweden. It will also arrange trips for Swedish companies to attendmajor events in Vietnam like a sourcing fair in June 2024 and an internationalfood expo to further promote bilateral trade./.

VNA