Ms. Nguyen Thi Hoang Thuy – Commercial Counselor, Vietnam Trade Office in Sweden concurrently responsible for the Northern European market, cited statistics from the Swedish International Trade Center showing import growth from Vietnam during the period. The period 2018 – 2022 averages 9%/year and this is a quite impressive number.
In 2022 alone, according to data from the General Department of Vietnam Customs, the value of Vietnamese goods exported to Sweden reached 1,264 billion USD, an increase of 5,4%, and imports reached 353 million USD, an increase of 9,9%. Total turnover reached 1,617 billion USD, an increase of 6,3% compared to 2021. Vietnam’s main export products to Sweden currently are phones of all kinds, computers, electronic products and components, and textiles. garments, shoes, iron and steel products, spare parts… Vietnam’s main imports from Sweden are telecommunications equipment, machinery and equipment of all kinds and pharmaceuticals.
Ms. Nguyen Thi Hoang Thuy said that the Vietnam Trade Office in Sweden is planning to organize a series of events on the sidelines of high-level visits that the prime ministers of the two countries previously agreed on, such as the Vietnam Business Forum. South – Sweden, activities to meet potential investors, organize Vietnamese Goods Week in Sweden, as well as organize Swedish business delegations to Vietnam to attend major fairs such as Source Fair (Sourcing Fair) in June 6 and the International Food Expo (FoodExpo), to further promote bilateral trade relations between Vietnam and Sweden.
According to Ms. Hoang Thuy, 2023 is a difficult year for the world economy due to the prolonged impact of many major fluctuations, such as the Russia-Ukraine conflict, China’s zero-COVID policy and the policy responses of other countries. country to deal with inflation. Weak aggregate demand and rising costs lead to shrinking production, business, investment and trade activities.
With such an overall economic picture, consumers are increasingly pessimistic, limiting unnecessary purchases and spending, leading to reduced consumer demand and reduced imports. Vietnam’s exports recorded a deep decline in many key products. Exports to Sweden will also decrease sharply in 2023. However, according to Trade Counselor Nguyen Thi Hoang Thuy, compared to other Asian countries, Vietnam still ranks second in exports to Sweden, only behind China.
With the Vietnam – European Union Free Trade Agreement (EVFTA) signed on June 30, 6 and effective from August 2019, 1, trade opportunities open up for businesses. Vietnam and the EU, including Sweden, are huge.
However, Commercial Counselor Hoang Thuy said that it is difficult to evaluate the effectiveness of the EVFTA after more than 3 years of implementation when the agreement came into effect during a period of world economic instability due to the COVID-19 pandemic then the Russia – Ukraine conflict broke the supply and demand chain, the energy and food crisis, high inflation, and people cut spending.
However, it must be affirmed that EVFTA will certainly help mitigate negative impacts on the economy and will gradually be effective. The most clearly visible effect is that tax incentives help many Vietnamese products have a competitive advantage compared to competitors in the market.
For example, rice products, previously almost absent in Sweden, with a turnover of only a few tens of thousands to more than 100.000 USD due to not being able to compete in price with rice from Cambodia and Thailand, now the turnover has increased to more than 3 billion USD. million USD and is gradually increasing its market share in this area. Similarly, some agricultural and fishery products had 0% tax in the first year, also showing a clear competitive advantage.
For some processed and manufactured goods, EVFTA not only brings tax benefits but also helps Swedish businesses become more excited about the Vietnamese market, especially in the context of these businesses’ demand. major in finding new markets to shift investment and business. Many Nordic business delegations have come to Vietnam to survey such as Autoliv Group, specializing in manufacturing safety products used in cars, with 72 factories in many countries around the world and sales revenue of 8,2 billion. USD/year.
However, the Swedish market also has many challenges because the population is small, just over 10 million people, the market is small, and there are high requirements for domestic consumer goods, so businesses in this country mainly import goods. Exported from distribution agents in EU centers. The market is small, the geographical distance is large while there are no direct flights from Vietnam, as well as no cooperation on seaports and airports, also making it difficult to bring Vietnamese goods directly into the market. Sweden.
In addition, if Vietnamese goods exported to the EU market in general and Sweden in particular, if they want to enjoy preferential tariffs, they must first comply with regulations on origin from the raw material production stage. Meanwhile, most of Vietnam’s key export products have not proactively sourced raw materials, so this will be a difficulty and challenge for Vietnamese businesses.
In addition to certificates of origin, Vietnamese businesses must also comply with other strict regulations, such as environmental issues and technical standards. Overcoming these difficulties, Vietnamese goods will have a solid foothold in the Swedish market in particular and the EU market in general.
In addition, Ms. Nguyen Thi Hoang Thuy emphasized that businesses need to pay attention to Sweden’s new consumption trends to adjust production. Swedish consumers are very concerned about environmental issues, so they pay attention to products produced through processes that ensure environmental protection standards and sustainable products. As for food, consumers are increasingly inclined to consume organic food. It is forecast that by 2030, organic food consumption in Sweden will increase three times as much as it is currently.
For daily consumer products, customers tend to choose products that are simple, convenient, can be used many times, use recycled materials… In general, consuming green and clean products is mainstream trend. Consumers increasingly pay attention to labels and certifications printed on them, rather than the product itself, and they are willing to pay 20 – 50% more for products with environmental protection or responsibility certification. social responsibility, sustainable development…