Sweden is a Nordic market with strong potential, but it requires Vietnamese enterprises to raise their standards of origin management and sustainability in order to effectively benefit from tariff preferences.

After five years of the EU–Vietnam Free Trade Agreement (EVFTA) being officially implemented, Vietnam’s export turnover to the Swedish market has recorded steady growth, particularly in traditional and processed product groups. However, according to the Vietnam Trade Office in Sweden, there remains significant room to further utilize EVFTA tariff preferences if Vietnamese enterprises become more proactive in origin management and restructure their supply chains in a more sustainable direction. On this issue, a reporter from Cong Thuong (Industry and Trade) Newspaper spoke with Ms. Nguyen Thi Hoang Thuy, Vietnam’s Commercial Counsellor in Sweden, concurrently in charge of Denmark, Norway, Iceland, and Latvia.

Utilization of EVFTA C/Os: Improved, but not yet commensurate with potential – Madam, after five years of EVFTA implementation, Sweden has been one of the Nordic markets showing steady growth in imports from Vietnam. How do you assess the extent to which Vietnamese enterprises are utilizing C/O preferences when exporting to Sweden?

Commercial Counsellor Nguyen Thi Hoang Thuy:
After five years of EVFTA implementation, it can be affirmed that the utilization of C/O preferences by Vietnamese enterprises exporting to Sweden has improved markedly, particularly in product groups with relatively stable supply chains and familiarity with the EU market, such as textiles and garments, footwear, furniture, and certain processed agricultural and seafood products.

However, the level of EVFTA preference utilization in the Swedish market still does not fully reflect its inherent potential. In practice, a considerable number of Vietnamese shipments are still exported under previous preferential schemes, even though they are technically capable of meeting EVFTA rules of origin. The main reasons do not stem from requirements or barriers imposed by the Swedish market, but rather from dossier preparation, enterprises’ origin management capacity, and the level of proactiveness of Vietnamese enterprises in organizing and controlling raw material and production supply chains.

Sweden places strong emphasis on sustainability and traceability. Does this create any specific or different requirements for Vietnamese enterprises when proving origin or completing C/O dossiers?

Commercial Counsellor Nguyen Thi Hoang Thuy:
From a legal perspective, EVFTA rules of origin are applied uniformly across the EU, and Sweden does not impose separate C/O requirements. However, in practice, Sweden is a more “demanding” market at the post-clearance stage, as importers, retail systems, and authorities pay particular attention to transparency, traceability, and consistency between origin dossiers and commitments related to environmental protection, labor, and sustainable development.

This means that Vietnamese enterprises must not only be “eligible” to apply for a C/O, but must also be able to present a coherent and consistent origin narrative—from input materials and production processes to environmental and social standards. If the C/O dossier is detached from the enterprise’s traceability and supply chain management system, it becomes very easy to face difficulties when explanations are requested or post-clearance audits are conducted in the Swedish market.

With Vietnam’s key export products to the Nordics such as furniture, processed agricultural and seafood products, and textiles, where do enterprises still lack information or capacity that prevents EVFTA utilization rates from meeting expectations?

Commercial Counsellor Nguyen Thi Hoang Thuy:
Based on practical observation, three main “bottlenecks” can be identified.
First, a lack of proactiveness in sourcing raw materials. Many enterprises remain heavily dependent on imported inputs from markets outside the EU and outside the EVFTA framework, while lacking a strategy to gradually shift to sources that meet rules of origin.

Second, weak origin management capacity within enterprises. Many companies still regard C/O as a final administrative procedure rather than as an integral part of their production and export strategy. Documentation storage, monitoring of input norms, and segregation of EVFTA-compliant and non-EVFTA material flows have not been carried out in a systematic manner.

Third, insufficient updated information on how to approach the Swedish market, especially regarding the requirements of major importers. Many enterprises focus mainly on tariff rates, while Swedish partners assess suppliers holistically, taking into account origin, sustainability, and long-term compliance capability.
In my view, many sectors still have EVFTA potential, but C/O utilization has not yet been sufficiently linked to market strategy.

Sectors with remaining potential, but underexploited – In your view, which sectors have significant potential to increase the use of preferential C/Os in Sweden, but have not yet been adequately exploited by Vietnamese enterprises? What are the main reasons?

Commercial Counsellor Nguyen Thi Hoang Thuy:
Beyond traditional product groups, I believe that deeply processed agricultural products, value-added foods, designed furniture and interior products, sustainable textiles, and certain light industrial goods still have substantial room to increase EVFTA C/O utilization rates in Sweden.

The main reason is that Vietnamese enterprises have not sufficiently linked their origin strategies with their market strategies. Many products already meet Swedish consumer preferences, but were not designed from the outset to meet “EVFTA standards,” resulting in ineligibility for preferences at the time of export or reluctance to complete C/O dossiers.

How do you assess the prospects for increasing EVFTA preference utilization rates in Sweden over the next few years? What factors will determine this growth?

Commercial Counsellor Nguyen Thi Hoang Thuy:
The outlook is positive, especially as the EU in general and Sweden in particular are diversifying supply chains, reducing dependence on certain traditional markets, and viewing Vietnam as a strategic partner in Asia.
However, the decisive factor does not lie in tariff preferences themselves, but in the ability of Vietnamese enterprises to restructure their supply chains. Enterprises that can proactively secure raw material sources, manage origin effectively, and integrate sustainability standards will be able to increase EVFTA utilization rates more rapidly and sustainably.

Finally, does the Trade Office have any specific recommendations for Vietnamese enterprises to become more proactive in managing production input supply chains, in order to ensure compliance with rules of origin and increase EVFTA utilization in the Swedish market?

Commercial Counsellor Nguyen Thi Hoang Thuy:
We recommend that Vietnamese enterprises approach the EVFTA from a long-term strategic perspective, rather than focusing solely on individual shipments.
Specifically, enterprises should proactively review their entire supply chains, clearly identify “non-compliant points” in terms of origin, and develop adjustment roadmaps accordingly. At the same time, they should invest in internal origin management systems, including input norms, document retention, and training of dedicated personnel.

In addition, enterprises should strengthen early communication with Swedish import partners to fully understand not only C/O requirements, but also expectations regarding traceability, sustainability, and social responsibility. The Vietnam Trade Office in Sweden stands ready to accompany enterprises by providing market information, facilitating partner connections, and supporting Vietnamese enterprises in moving from being “EVFTA-eligible” to “effectively leveraging EVFTA” in the Swedish market.

– Thank you very much!
By Nguyen Huong