What count among the biggest opportunities for Swedish companies in Vietnam?

There are several. First of all, Vietnam is experiencing very strong growth, and the government is actively pursuing reforms, moving the country in the right direction. The workforce is also well-educated, which is a key advantage. Moreover, with a population of 100 million, Vietnam represents a large and dynamic market. So, there are many compelling reasons for Swedish companies to consider investing here.

One thing I have noticed is that Vietnam today is very different from 10 or 15 years ago. Swedish companies mainly came here to manufacture products. They are no longer coming to Vietnam just for production, but also for research and development (R&D), because Vietnam has so many highly-talented engineers. I believe the next step will be for Swedish retail companies to enter the market, not just to export but also to serve the domestic market.

What reasons are behind Swedish companies’ growing investments in Vietnam?

Sweden has a diversified industrial background. We are present in many fields in Vietnam, such as the retail sector, with the H&M Group and the IKEA Group. These firms all consider Vietnam a key market, not only in their sales activities but also in their production activities.

With everything happening in Vietnam right now, such as new ports, airports, railways, and roads being built, several Swedish companies are already active in these sectors.

Notably, the Syre Group recently signed an MoU for a $1 billion investment in a polyester fabric recycling complex in Binh Dinh province [now part of the central highlands’ Gia Lai province]. This marks a significant step forward in Swedish investment in Vietnam’s sustainable and circular economy.

As I mentioned, I have spoken with several Swedish companies already active here, and they’re all discussing plans to expand further in Vietnam. I have asked them quite directly, “Across the entire Southeast Asian region, which country do you find the most promising?” and they all answer, “Vietnam”.

I think the most important point is that Vietnam is clearly moving up the value chain, not only focusing on manufacturing but also advancing into R&D. Swedish companies are now coming here not only to manufacture goods but also to invest in the service sector and R&D. They recognize that Vietnam offers some of the best talent and most capable engineers in the world. On the government side, we are doing everything we can to support and facilitate this growing partnership.

Digital transformation is currently very important for Vietnam, and it is also a key strength of Sweden’s. Could you elaborate on Sweden’s commitment to supporting Vietnam in digital transformation?

Sweden has been a long-term friend and partner of Vietnam. We were the first Western country to establish diplomatic relations with Vietnam, in 1969, so our friendship goes back a long way. And it’s not just on the diplomatic side; there has also been strong engagement through the business sector, and many Swedes have traveled to and visited Vietnam over the years.

There is great potential for cooperation between the two countries in the digital sector. Sweden is home to many innovative software companies. A prime example is Spotify, not only one of Sweden’s leading tech companies but also the largest software company in Europe.

In addition, we have many other companies with strong technological capabilities, ready to support Vietnam in its digital transformation journey. I know that many Swedish companies are very interested and eager to invest in the Vietnamese market. Therefore, I believe there is great potential for our two countries to further strengthen cooperation and grow together in this field.

Besides trade and investment, are there any new areas of collaboration between Vietnam and Sweden on the horizon?

Vietnam and Sweden have already cooperated in many areas. For example, the Karolinska Institute from Sweden is active in the health sector, offering various educational programs in Vietnam. I also know that companies in the science and innovation sectors are showing strong interest in coming here. Right now, I’m working day and night to attract more Swedish companies to Vietnam; that’s my number one priority.

We now have more than 70 Swedish companies operating here in Vietnam, but I believe that number will reach 100-150 or more, especially if we can encourage more small and medium-sized enterprises (SMEs) to explore opportunities in Vietnam. My goal is to open the eyes of Swedish businesses to the potential of the Vietnamese market.

Sweden is one of the most open and free trade-oriented countries in the world. And I know that Vietnam shares this approach. That is why we need to stand together as friends and allies in the field of free trade. Because through trade, every country will be more prosperous. A world of rising tariffs is a poorer and less secure world. Therefore, Vietnam should also see Sweden as a friend when it comes to trade as well.

What is Sweden’s position on the current disruptions to global trade?

Well, I love free trade, and I don’t like tariffs. In my opinion, “tariff” is the worst word in the dictionary. Through trade, we achieve more innovation and scientific progress. In fact, one of the key reasons that Sweden is among the most innovative countries in the world is because of trade.

And in order to become innovative, you need several institutions functioning. First, you need open markets and free trade. Second is the capital market. In Sweden, we have one of the most well-functioning capital market ecosystems in Europe, ranging from private equity firms to venture capital funds.

Despite not being the largest country, we have the highest number of listed companies on the stock exchange in all of Europe. Finally, a strong and well-functioning education system is also essential for the innovation process. Overall, several institutions must work in harmony to drive innovation.

Looking at Vietnam, over the past 30 to 40 years, Sweden has been part of various aid programs to support the development of these very institutions. That’s something we are deeply proud of. And watching Vietnam’s progress over the past three decades has been truly inspiring. We want to continue being your partner, not just for the next 30 years but for the next 100 or even a thousand years to come.

How can Vietnam and Sweden work together to contribute to the relationship?

I think my arrival here is a good first step in that direction. Of course, we would also love to welcome Vietnamese ministers to Sweden to help bring Swedish and Vietnamese companies together, creating opportunities for dialogue and new partnerships.

But right now, our friendship is already very strong, and we simply need to continue along that path while looking ahead to the potential in the Vietnamese market. As I mentioned, everyone in Sweden is talking about Vietnam these days. Vietnam is clearly doing many things right, so just keep going in that direction.

This is the first time you have visited Vietnam. What message will you take back to Sweden?

The message I will take back to Sweden is that Vietnam is a great market. I believe that not only the 70 companies currently operating here but many other Swedish companies as well should come to visit, invest, and engage in trade with Vietnam. With all the ongoing reforms, this is an extremely attractive market.

If you look at the world today, there are not many countries like Vietnam growing at 7 per cent annually. And the fact that Vietnam is aiming for 8 or even 10 per cent growth per year is truly remarkable. That’s the key message I’ll be taking back to Sweden.