March 27, 2019 05:13

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Swedish firms eager to tap Vietnamese market

14:56 | 12/01/2019

The influx of Swedish investments into Vietnam has risen in the past years as Swedish firms sought to deepen their market penetration and take up new opportunities.

swedish firms eager to tap vietnamese market

ABB Robotics Technical and Service Centre in Bac Ninh province.

Vietnam Economic Times reported that Sweden’s environmental solutions provider Saltec International AB (Saltec) has been fostering cooperation with Lam Son construction and trading limited company in executing a wastewater treatment project worth some US$50,000.

The Saltec had previously set foot in the Vietnamese market via its provision of equipment for Bai Bang paper mill in the northern province of Phu Tho. The factory was built in late 1982.

The firm wishes to grasp business opportunities in Vietnam as the local industrial waster and wastewater treatment industry remains fledgling and has strong demand for cutting-edge technologies and investments from European countries, said Denny Wallberg, CEO of the Saltec.

Meanwhile, Marko Kunerus, sales director of Sweden’s wastewater treatment solution provider Hydria Water said his firm is managing to work with some local businesses in search for market information while raising efforts to penetrate the market.

Statistics from the Foreign Investment Agency under the Ministry of Planning and Investment showed that last year Sweden ranked 43rd out of 112 countries and territories with investments in Vietnam, with the total capital reaching US$5.92 million.

Of these, US$2.35 million was registered for eight new FDI projects while US$1.35 million was added to three existing FDI projects. Regarding indirect investment, Swedish investors poured US$2.22 million into 17 projects under equity capital deals.

Some Swedish brand names have been striking local firms and consumers. They include furniture firm IKEA and ABB in Vietnam, a subsidiary of Swiss-Swedish multinational group ABB operating mainly in power grids, electrification products and industrial automation.

Tetra Pak, holding a share of around 98% of Vietnam’s dairy wrapping market, kicked off construction of another factory in the southern province of Binh Duong, valued at US$110 million in October 2017.

A number of Swedish investors are eyeing the Vietnamese market as they operate in the fields Vietnam wishes to boost. In order to lure additional Swedish investment inflows, Vietnam should make policy changes to increase transparency and create more favorable conditions for investors, Denny suggested.

Source: VOV