Nordic green transition creates new opportunities for Vietnamese businesses

Nordic countries accelerate green transition

According to the Vietnam Trade Office in Sweden, which also covers the Nordic market, in the context of green transition and sustainable development, Nordic nations such as Sweden, Norway, and Denmark continue to lead with pioneering policies on renewable energy, circular economy, and technological innovation. These policies not only shape the future of the Nordic economy but also pose challenges and offer opportunities for Vietnamese export businesses.

In particular, green transition and carbon neutrality are expected to remain key priorities in the region. These countries aim to increase the share of renewable energy and minimize greenhouse gas emissions.

In Sweden and Denmark, businesses must meet very strict environmental standards, especially for products with a high carbon footprint. For Vietnamese exporters, this means improving production processes, reducing fossil fuel use, and developing sustainable products. Items such as wooden furniture, textiles, and agricultural products will have a significant advantage if certified as using renewable energy or environmentally friendly materials.

For specific sectors, Nguyen Thi Hoang Thuy, Head of the Vietnam Trade Office in Sweden, noted that the rapidly growing electric vehicle market in the Nordic region presents opportunities for Vietnamese businesses to engage in the supply chain for electric vehicle components and parts. Domestic manufacturers can take advantage of this trend by investing in production technology and exporting products for the green transportation sector.

The circular economy will increasingly become a crucial element in the value chain in the Nordic region. Policies promoting recycling and reuse, as well as replacing plastics with bio-based materials, are setting new standards for imported products. For Vietnamese businesses, producing eco-friendly packaging or using alternative materials such as bioplastics from wood pulp, cellulose, or recycled products will help increase competitiveness in this demanding market.

The agro, seafood, and processed food sectors need to focus more on green, reusable packaging. Additionally, ensuring sustainable production processes, complying with waste management standards, and reducing emissions will be essential to maintaining and expanding market share in the Nordic region.

Moreover, the Nordic countries play a key role in promoting green trade and the Carbon Border Adjustment Mechanism (CBAM). This mechanism will impose taxes on imported products with high CO2 emissions, putting pressure on Vietnamese exporters, especially in sectors such as steel, cement, chemicals, and aluminum. To adapt, Vietnamese businesses need to shift to green production models, reduce emissions in the supply chain, and demonstrate their ability to meet the stringent environmental standards set by the EU.

What are opportunities for Vietnamese businesses?

Nguyen Thi Hoang Thuy stated that while green transition trends may pose challenges, they also create opportunities for environmentally friendly products and services from Vietnam. Businesses capable of providing eco-friendly products, such as organic agricultural goods, handicrafts made from natural materials, or recycled items, will find ample opportunities to enter this lucrative market.

"The Nordic market, with its focus on green, sustainable consumption, and high-tech trends, offers many opportunities for Vietnamese businesses," said Hoang Thuy. She also mentioned that the demand for organic agricultural products and processed food continues to grow significantly, with products such as coffee, tea, and cashews—already known for their quality in the EU market—having the potential to expand their market share even further.

Particularly, processed seafood such as shrimp, catfish, and frozen seafood products are popular choices due to their compliance with food safety standards and traceability. Developing products that are certified organic or environmentally friendly will help Vietnamese businesses gain a competitive edge.

In addition to food, garments, textiles, and footwear are key products for Vietnam in Sweden. Products made from recycled materials, organic materials, or those with sustainable production processes are highly valued by Swedish consumers. Investing in production technology improvements, enhancing product quality, and obtaining international certifications will open up a wealth of opportunities for Vietnamese businesses to increase their market share.

Furthermore, Sweden has a high demand for handicrafts and traditional, unique goods. Products such as furniture made from sustainable wood, rattan, and hand-crafted home decorations are popular for their environmental friendliness and rich cultural identity. This represents a significant opportunity for Vietnamese businesses to develop niche markets in the Scandinavian nation.

Therefore, businesses need to apply international standards such as ISO 22000, HACCP, and IFS to ensure food safety and meet the requirements of Sweden and the EU. In addition, promoting Vietnamese-branded products through trade promotion programs, international exhibitions, and media campaigns will be crucial.

They also need to transition their production processes to sustainability by using organic materials and recycled packaging to align with the green consumption trends in Sweden. Collaborating directly with large retail chains and exploring opportunities with major retailers like ICA, Coop, and Axfood will help bring Vietnamese products to store shelves.