After six years of implementation, the EU–Vietnam Free Trade Agreement has provided additional momentum for Vietnamese goods to enter Nordic markets. Tariff reductions, improvements in the regulatory framework and trade facilitation have helped many products become more competitive, expand their presence and gradually integrate more deeply into regional distribution systems.

However, tariff advantages are increasingly becoming a necessary rather than sufficient condition. Vietnamese goods in the Nordic market must comply with an increasingly stringent set of requirements concerning carbon emissions, raw material origin, deforestation, packaging, product safety and supply-chain transparency.

Against this backdrop, Vietnamese enterprises need to shift from the mindset of “benefiting from tariff reductions” to developing the capacity to “demonstrate the sustainability of their products”. This will be a decisive factor in their ability to maintain and expand their presence in the Nordic market in the next phase.

EVFTA Creates a New Foundation for Vietnamese Goods

The EVFTA entered into force on 1 August 2020. Under the agreed implementation schedule, Vietnam and the EU will eliminate tariffs on approximately 99% of tariff lines, while reducing regulatory barriers, expanding access to services and public procurement markets, protecting geographical indications and strengthening the stability of the bilateral trade framework.

For Vietnamese goods in the Nordic market, the most direct benefit is eligibility for preferential import tariffs when rules of origin are met. This is particularly important for textiles and garments, footwear, furniture, seafood, coffee, electronics, machinery and processed industrial products.

Beyond tariff benefits, the EVFTA has also strengthened confidence in the Vietnamese market, providing a basis for importers to build long-term relationships, diversify supply sources and integrate Vietnamese businesses more deeply into supply chains.

The agreement’s initial impact can be seen in import trends, with Sweden and Denmark providing notable examples.

Sweden: Trade Value Up Nearly 35% Compared with the Pre-EVFTA Period

According to ITC Trade Map data based on UN Comtrade statistics, Sweden imported approximately USD 1.196 billion worth of goods from Vietnam in 2019. By 2025, the figure had reached nearly USD 1.613 billion, an increase of around USD 417 million, equivalent to 34.9%.

On average, Swedish imports from Vietnam grew by approximately 5.1% annually during the 2019–2025 period. This was a positive result given the significant market disruptions caused by the pandemic and armed conflicts, which affected consumer demand, logistics costs and international supply-chain operations.

In 2025 alone, imports from Vietnam increased by 30.9% compared with 2024, while Sweden’s total merchandise imports rose by only around 7%. Growth continued during the first six months of 2026, when Vietnam’s exports to Sweden increased by 19.6% year on year, according to statistics from the Vietnam Customs Department.

These results indicate that the EVFTA has helped create a more favourable foundation for Vietnamese goods in Sweden. However, Vietnamese products still account for a relatively small share of the market’s total imports. Growth potential therefore remains considerable, particularly if businesses can improve product recognition, establish more direct links with distribution systems and better meet environmental, safety and supply-chain responsibility requirements.

Denmark: Rapid Growth and a Broader Product Structure

In Denmark, post-EVFTA growth has been even more pronounced. In 2019, Denmark imported approximately USD 393.7 million worth of goods from Vietnam. By 2025, the figure had reached nearly USD 610.7 million, an increase of around USD 217 million, equivalent to 55.1%.

Average annual growth during the 2019–2025 period reached approximately 7.6%, higher than the average annual growth rate of 5.8% in Denmark’s total imports from the world during the same period. This indicates that Vietnamese goods have gradually improved their relative position in the Danish market.

During the first six months of 2026, Vietnam’s exports to Denmark continued to increase, rising by 29.9% compared with the same period in 2025, according to the Vietnam Customs Department.

Another notable development is the increasing diversification of Vietnamese goods in Denmark. Electrical machinery, equipment and components increased from USD 27.5 million in 2019 to USD 117.3 million in 2025, more than quadrupling.

Mechanical machinery increased from USD 17.3 million to USD 43.7 million, iron and steel products from USD 11.5 million to USD 41.2 million, and plastic products from USD 19 million to USD 31.3 million.

Coffee, tea and spices also increased from around USD 2 million to USD 10.7 million. Meanwhile, textiles and garments, footwear, furniture and seafood continued to play an important role, although growth varied across product groups.

These changes show that trade relations are gradually expanding from traditional consumer goods into electronics, machinery and higher-value industrial products.

The EVFTA has therefore not only supported growth in trade value, but has also created conditions for Vietnamese goods to participate in a broader range of Danish supply chains.

Investment – An Important Spillover Effect of the EVFTA

In addition to trade in goods, investment from Sweden and Denmark into Vietnam has also increased significantly since the EVFTA entered into force.

By the end of 2019, Sweden had 78 valid foreign direct investment projects in Vietnam, with total registered capital of approximately USD 376.65 million. By 2025, the number of projects had increased to 110, up by around 41%, while total registered capital reached USD 1.76 billion, nearly 4.7 times the pre-EVFTA level.

For Denmark, the number of projects increased from 139 projects with total registered capital of USD 430.25 million in 2019 to 176 projects and approximately USD 2.1 billion in 2025. The number of projects therefore increased by nearly 27%, while total registered capital rose by approximately 388%, equivalent to nearly 4.9 times the 2019 figure.

What is noteworthy is not only the volume of investment, but also its quality. LEGO’s USD 1 billion factory in Bình Dương was developed according to green-building standards and with a focus on renewable energy.

Pandora has invested in a jewellery manufacturing facility using recycled metals and renewable electricity, while Carlsberg has continued expanding production with the aim of reducing water and energy consumption.

On the Swedish side, Tetra Pak has expanded its packaging factory in Bình Dương, applying digital technologies and high standards of resource efficiency. Syre is also studying the development of a large-scale textile-to-textile polyester recycling facility in Vietnam, helping to promote a circular economy in the textile and garment industry.

These projects show that investment flows from Sweden and Denmark are increasingly associated with technology, clean energy and high environmental standards.

The EVFTA is not the only driver, but together with Vietnam’s extensive network of free trade agreements, it has contributed to strengthening Vietnam’s attractiveness as a manufacturing base serving the domestic, regional and export markets.

New Standards Are Reshaping Competitiveness

The Vietnamese product groups currently recording growth in Nordic markets are also among those facing the greatest pressure from new standards.

Electronics and machinery must comply with stricter requirements on safety, chemicals, durability and repairability. Textiles, garments and footwear must provide greater transparency on raw materials and product life cycles. Coffee, wood and furniture must demonstrate origin down to the production area.

This shows that competitive advantage is shifting away from price and tariff rates towards data management, supply-chain control and the ability to demonstrate sustainability.

Carbon Is Becoming a Cost Factor

The Carbon Border Adjustment Mechanism entered its definitive phase on 1 January 2026, initially applying to emissions-intensive sectors such as iron and steel, aluminium, cement and fertilisers.

Although its direct impact on Vietnamese goods in the Nordic market is currently limited, importers are increasingly requesting verifiable data on energy, fuel, input materials and emissions.

Greenhouse-gas inventories and carbon footprints will therefore gradually become conditions of competitiveness. Businesses need to identify relevant product codes and CBAM obligations at an early stage, particularly for growing iron and steel product categories.

Traceability Is Becoming the New Passport to Market

The EU Deforestation Regulation will apply from the end of 2026 to large and medium-sized enterprises, and from mid-2027 to most small and micro-enterprises.

The regulation directly affects coffee, rubber, wood, cocoa and related products.
Under the regulation, country of origin alone is no longer sufficient. Businesses must identify the precise area of cultivation or extraction, manage geolocation data and control intermediary stages.

This presents a challenge for fragmented supply chains, but also creates opportunities for companies with strong traceability systems to access importers and higher-value market segments.

Packaging and Data Must Be Designed Together with the Product

The Packaging and Packaging Waste Regulation will be broadly applicable from August 2026, introducing stricter requirements concerning recyclability, material use and the reduction of unnecessary packaging.

Packaging must therefore be considered from the product design stage, rather than addressed only during the final packing process.

At the same time, the General Product Safety Regulation increases responsibilities relating to technical documentation, batch traceability and product recalls.

Digital Product Passports will also require information on materials, durability, repairability, reuse and recyclability to accompany products throughout their life cycles.

These changes are particularly important for textiles and garments, footwear, electronics, furniture and household goods.

Market Standards May Develop Faster than Legislation

In addition to mandatory EU regulations, businesses must also meet the specific requirements of Nordic importers and retail systems.

The Nordic Swan Ecolabel is one example, with requirements on climate impact, chemicals, durability and circularity that are often stricter than the minimum legal standards.

A product may therefore be legally eligible for import but still not be selected if it lacks evidence on emissions, raw material origin, production conditions or recyclability.

The distinction between legal standards and commercial requirements is becoming increasingly narrow.

Compliance not only determines whether goods can clear customs, but also whether they can enter distribution systems and maintain long-term relationships with buyers.

From Tariff Preferences to Adaptive Capacity

The EVFTA has made it easier for Vietnamese goods to access Nordic markets, but tariff preferences are no longer sufficient to guarantee long-term growth.
Competition in the new phase will depend on supply-chain control and data quality.

Businesses need to move from preparing documentation for individual orders to building continuous management systems in which information on raw materials, emissions, chemicals, packaging and production processes is collected and verified from the outset.

Compliance must also begin at the supplier-selection and product-development stages, rather than waiting until importers request information.

A reactive approach not only increases costs, but may also cause businesses to miss orders.

Government agencies and trade-support organisations therefore need to move beyond disseminating regulations and provide practical implementation support, especially for small and medium-sized enterprises.

Guidance should be specific to each sector and linked to data requirements, certification, traceability and the criteria of Nordic distribution systems.

The EVFTA has opened the market door. However, whether Vietnamese businesses can establish a lasting position beyond that door will depend on their ability to turn transparency, sustainability and responsibility into genuine competitive capabilities.