This survey shows that Vietnam was not exempted from being hit hard by the effects of the Covid-19 pandemic, despite having been praised for the successful containment of the outbreaks in 2020. The outbreak of the Delta variant of Covid-19, which mainly occurred in the second and third quarters of 2021, had a tremendous impact on businesses residing in Vietnam.
When the vaccination rate steadily increased, Vietnam could eventually shift its strategy from a “zero-Covid strategy” to one focusing on trying to learn to live with the virus. This resulted in a sharp decrease in cases and made it possible to decrease the restrictions and lockdowns that were put in place, leading to a positive GDP growth.
Swedish companies overall appeared to have weathered the storm. Although 2021 presented many challenges, 63 per cent of the surveyed reported a profitable financial year.
Vietnam remains a country severely affected by climate change. At The UN Climate Change Conference in Glasgow (COP26) in November 2021, Vietnam made ambitious commitments including setting a net-zero emissions target and an end date for using coal. As many Swedish companies in Vietnam have a clear sustainability profile, there is now significant potential to deliver green solutions in response to the country's new climate commitments.
Vietnam remains an attractive destination for Swedish companies. Since the implementation of Economic and Political reforms in 1986, the market has witnessed substantial development and extensive integration with the world economy.
The majority of large companies surveyed stated that the Swedish brand contributed to their business “to an extent or great extent" while the contribution for small & medium size enterprises is smaller. The business is further enhanced by the perception that Swedish brands are, similarly to other European brands, premium, innovative, and sustainable.
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ABOUT THE SURVEY
The purpose of this report is to enhance the readers’ understandings of Swedish companies’ performance in Vietnam and to share insights into the opportunities and challenges that the Vietnamese market poses.
The Vietnam survey was conducted in the second quarter of 2022 to study how Swedish companies performed in 2021 as well as their expectations for 2022 and onwards. By 2021, there were around 85 Swedish companies present in Vietnam and of these, 35 per cent chose to participate in this year’s survey.
We would like to extend our sincere gratitude to the participating companies and respondents who have contributed to this report.