Shifting production to expand exports to the Northern European market

VCN - Nordic countries often map out policies to achieve EU goals sooner than others. Among them, general principles and standards regulating manufacturers' responsibilities for textiles and garments from Nordic countries need to be paid attention by businesses.
illustration image. By H. Dịu
illustration image. By H. Dịu

According to the Vietnam Trade Office in Sweden, concurrently in charge of Northern European countries, in the first 5 months of 2024, two-way trade between Vietnam and Sweden, Denmark, Norway reached 1.08 billion USD, of which Vietnam's exports reached 650.36 million USD, an increase of 3.76% and imports reached 430.91 million USD, an increase of 8.37% over the same period in 2023. Regarding investment, Northern European countries currently have 337 investment projects in Vietnam with a total capital of about 2.91 billion USD.

Although import-export turnover is growing, the Vietnam Trade Office in this market said that many new policies have an impact on trade with Vietnam. Specifically, Nordic countries often have policies to achieve EU goals sooner than other countries. Among them, the general principles and standards regulating manufacturers' responsibilities for textiles and garments from Nordic countries need to be taken into account by businesses

According to the Office, the Committee for Cooperation on Sustainable Development in the Nordic region held a meeting in February 2024 in Stockholm, Sweden agreed to introduce a common principle and standard regulating the responsibilities of producers toward textiles and garments.

The main goal of the regulations is to reduce the large volume of clothing and textiles consumed in the Nordic region. The fashion and textile industry is one of the world's most polluting industries, accounting for 8-10% of global greenhouse gas emissions, and people living in Northern Europe consume more textiles than the average level in the world.

In addition, Nordic countries also want to promote the textile industry in a more sustainable direction, solving problems related to textile waste exported to low-income countries outside the EU for landfill.

Ms. Nguyen Thi Hoang Thuy, Commercial Counselor in Sweden, concurrently responsible for the Nordic countries, said expansion policies of the Nordic countries prove that these countries are always at the forefront of climate change issues and environmental protection. Sweden has decided to double climate aid to 15 billion SEK (equivalent to about 1.54 billion USD) by 2025, Denmark is also promoting green investment, Norway will support 14 billion NOK (equivalent to about 1.54 billion USD) by 2025 (equivalent to about 1.49 billion USD) for developing countries by 2026 to support climate change and promote green technology, transitioning to renewable, circular and sustainable solutions.

Furthermore, Northern European consumers are increasingly inclined towards nature, consuming organic foods; Environmentally friendly products, which can be recycled and reused. It is forecast that by 2030, organic food consumption in the Northern European region will increase three times as much as it is currently...

Therefore, the Vietnam Trade Office in Sweden, concurrently in charge of Northern European countries, recommends that Vietnamese businesses need to pay attention to shifting production in line with world trends in the near future.

In addition, Ms. Nguyen Thi Hoang Thuy informed that Vietnam's export activities to this market in the last 6 end-year months may be suffered from disadvantages such as economic difficulties in along with the escalation of inflation, interest rates, and unemployment rates. Northern European households have tightened their belts and reduced spending even during the summer vacation months. Many industries are facing difficulties such as construction, furniture trading, clothing, footwear...

Besides, the currencies of these countries, especially Sweden, are currently at record lows compared to the euro and US dollar. The weak currency has made imported goods more expensive. At the same time, domestically produced goods become more competitive compared to imported goods. This could promote preference for domestic products and reduce the need for imports from other countries.

In addition, political conflicts and wars in some regions of the world have pushed up international transportation costs, escalating the price of products exported from Vietnam, reducing competitiveness in the Northern European market.

By Ngoc Linh/ Thu Phuong

Related News

Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Businesses need support from vietnamese representative offices abroad

Businesses need support from vietnamese representative offices abroad

VCN - Several heads of Vietnamese representative offices abroad believe that Vietnamese businesses need to prepare solutions to respond to the changing global economy and meet the increasing demands of the international market.

Latest News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.

More News

Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Developing supporting industries for the billion-dollar export commodity groups

Developing supporting industries for the billion-dollar export commodity groups

VCN - Electronic products and components are one of export commodity groups with turnover exceeding one billion USD, but the supporting industry for this group is still modest.
Village craft products conquer the world

Village craft products conquer the world

VCN - Vietnam's handicraft products have significant potential to captivate international customers, enhancing export value and revenue.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version