Swedish firms eye investment expansion in Vietnam on strong long-term outlook

The Vietnam Business Climate Survey 2026 was released on Thursday by Business Sweden, also known as the Swedish Trade and Invest Council, and the Swedish Embassy in Vietnam.

The survey is based on feedback from 33 Swedish firms operating across multiple sectors in Vietnam.

It assesses business performance, investment plans, market conditions and key challenges, offering an overview of corporate sentiment.

This year’s survey indicates that Swedish firms operating in Vietnam continue to record steady performance and maintain a strong long-term commitment to the market.

Although revenue expectations have become slightly more cautious compared with the previous year, investment sentiment remains positive, with many companies still expanding their footprint in Vietnam.

“Despite global uncertainty, Swedish companies in Vietnam remain optimistic about the market’s long-term potential,” the survey found.

The findings indicate that Vietnam’s strong economic growth continues to anchor investor confidence.

Over the past three decades, the country has become one of the fastest-growing economies in Asia, supported by political stability and long-term investment in infrastructure and manufacturing, the survey said.

The country’s gross domestic product expanded by 8.02 percent in 2025, keeping it among the world’s fastest-growing economies.

Against this backdrop, 61 percent of the Swedish companies expect their industry revenue to increase in 2026, while 50 percent plan to expand investment this year.

Although slightly lower than in previous surveys, the figures still reflect strong confidence in Vietnam’s long-term growth prospects.

Nearly half of the firms surveyed established operations in Vietnam after 2020, underscoring the country’s continued attractiveness as a destination for new investment.

The report also found that the Swedish brand remains a strong asset in Vietnam, with 81 percent of companies saying it supports their business operations.

The respondents attributed this to perceptions of quality, sustainability, and innovation.

This brand strength is reinforced by Swedish companies’ presence in sectors such as healthcare and infrastructure, as well as their growing involvement in Vietnam’s green transition, particularly in renewable energy and sustainable industrial solutions.

The companies also reported an improving business environment.

In 2026, 67 percent of the respondents described Vietnam’s operating conditions as good or very good, up significantly from 46 percent in 2025.

The firms highlighted strong supplier networks, well-developed distribution systems, and a high level of safety as key advantages of their operations in the country.

However, they also pointed to customs procedures, licensing requirements, and regulatory complexity as ongoing challenges.

Beyond operational conditions, structural factors are also shaping investor sentiment.

Environmental considerations are becoming increasingly important, with 59 percent of the firms polled saying sustainability now influences customer purchasing decisions.

The respondents said further improvements in the regulatory framework and infrastructure would be key to accelerating progress in this area.

Marcus Persson, country manager of Business Sweden in Vietnam, said the survey reflects a stable and long-term outlook among Swedish companies, with continued focus on investment, sustainability, and local integration.

Swedish Ambassador to Vietnam Johan Ndisi said Vietnam remains one of the most dynamic economies in Southeast Asia.

He noted that Swedish firms contribute not only capital but also expertise in sustainable solutions and innovation, supporting Vietnam’s development goals.