Half of Swedish businesses operating in Vietnam plan investment expansion

The fact that 50% of surveyed Swedish businesses plan to increase investment in Vietnam in 2026 demonstrates their firm long-term confidence in the Vietnamese market.

Swedish companies operating in Vietnam continue to maintain a positive outlook on the country's market prospects and regard the country as a strategic long-term investment destination, according to the Business Climate Survey 2026 released by Business Sweden and the Swedish Embassy in Hanoi on June 11,

Confidence reinforced by growth prospects

Based on responses from 33 Swedish companies across a wide range of industries, the survey shows that the Swedish business community continues to demonstrate a strong commitment to the Vietnamese market despite ongoing global economic uncertainties.

Specially, in 2026, 50% of Swedish companies plan to increase their investments. Although slightly down from 59% in 2025, this figure indicates sustained confidence in Vietnam’s long-term growth potential and a resilient investment outlook.

These findings are also consistent with the broader sentiment of the European business community. According to the European Chamber of Commerce's (EuroCham) Business Confidence Index (BCI) for the first quarter of 2026, despite growing short-term caution amid geopolitical uncertainties and rising costs, 93% of surveyed businesses would still recommend Vietnam as an investment destination, up from 87% in the fourth quarter of 2025.

While EuroCham’s indicator reflects overall confidence in the market, the fact that 50% of Swedish companies plan to increase their investments suggests that long-term confidence is being translated into concrete expansion plans.

Business Sweden also notes that nearly half of the Swedish companies participating in the 2026 survey established their presence in Vietnam after 2020. This indicates that Vietnam’s appeal extends beyond long-established businesses and continues to attract a new wave of investors that have entered the market in recent years.

Marcus Persson, Trade Commissioner of Sweden to Vietnam, said “the survey confirms what we see on the ground: Swedish companies are taking a long-term, steady approach to Vietnam.”

“There is a willingness to invest, but also a clear focus on building sustainable and locally anchored operations. Continued improvements in the regulatory environment would further strengthen Vietnam’s already strong position as an investment destination,” he added.

The planned increase in investment by Swedish companies comes at a time when Vietnam’s economy continues to maintain a strong growth trajectory. The country’s GDP growth reached 8.02% in 2025, outperforming earlier projections and reinforcing the country’s position among the world’s fastest-growing economies. This follows a solid growth of 7.09% in 2024.

Swedish companies share this positive trajectory. In 2026, 61% expect industry turnover to increase. Together with 81% recorded in 2025, the last two years reflect a stable and forward-looking business sentiment.

Ambassador of Sweden to Vietnam Johan Ndisi stated Vietnam has developed into one of the most dynamic economies in Southeast Asia, and the long-standing relationship between Sweden and Vietnam provides a strong foundation for deeper economic cooperation. “Swedish companies bring not only investment but also experience in sustainable solutions and innovation that support Vietnam’s continued development,” he noted.

Business environment seen as improving

Another key factor supporting companies' investment expansion plans is the improvement in their assessment of Vietnam’s business environment.

The survey shows a notable improvement in the overall business environment. In 2026, 67% of the companies describe the business climate as good or very good, compared to 46% in 2025. This signals that businesses are increasingly recognizing improvements in market conditions, operational efficiency, and the overall investment environment.

Swedish companies report high satisfaction with Vietnam’s strong supplier base, reliable distribution networks, and overall sense of safety as key advantages. These factors continue to make the country an increasingly attractive place to operate.

The survey also highlights the strength of Sweden’s reputation in Vietnam, with 81% of Swedish companies confirming that “Brand Sweden” supports their business, reflecting positive associations with high quality, sustainability, and innovation.

This is reinforced by strong local partnerships and long-standing presence in key sectors aligned with Vietnam’s development priorities, such as health, infrastructure and trusted connectivity contributing to the green and digital transformation.

In addition to strong growth prospects and an improving business environment, the green transition is emerging as a key driver of cooperation between Vietnam and Sweden.

The survey indicates that sustainability is still evolving in practice. In 2026, 59% of companies report that environmental factors influence customers purchasing decisions.

Swedish companies are actively supporting Vietnam’s green transition, particularly in renewable energy and sustainable industrial solutions. At the same time, they emphasize the importance of clearer regulatory frameworks and improved infrastructure to accelerate progress.

Customs procedures and licensing remain areas for improvement

Despite relatively positive investment plans and assessments of the business environment, Swedish companies believe that Vietnam still needs to address certain bottlenecks in order to further enhance its attractiveness to investors.

They point to customs procedures, licenses processes and regulatory complexity as areas requiring further improvement. These findings are consistent with the 2025 survey, where 40% of companies identified customs procedures as a major obstacle, indicating that administrative simplification remains an important priority for reform.

This indicates that administrative reform, procedural simplification, and greater transparency in the legal system remain key factors in sustaining investment inflows. For companies planning to expand their presence, the stability and predictability of the regulatory environment play a particularly important role in decision-making processes.

Business Sweden notes that continued progress on regulatory transparency, administrative efficiency, and infrastructure will be important to sustain momentum and unlock further investment.

The Business Climate Survey is conducted annually by Business Sweden in collaboration with the Embassy of Sweden in Vietnam. The survey captures the perspectives of Swedish companies operating in the Vietnamese market, covering areas such as business performance, investment plans, market conditions and key challenges.

The 2026 edition is based on responses from 33 Swedish companies across a range of industries, providing a snapshot of business sentiment and insights into opportunities and obstacles in the Vietnamese market.