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Exports of consumer industrial goods to Sweden grow amid the COVID-19 pandemic

06/07/2021

According to statistics of the General Department of Customs, in the first quarter of 2021, the two-way trade turnover between Vietnam and Sweden reached USD 362.1 million, decreased by 3.5% over the same period in 2020. In which , export turnover reached USD 270.55 million, decreased by 7.5%; imports reached USD 91.55 million, increased by 8.3%; Vietnam's trade surplus to Sweden of USD 181.2 million, decreased from USD 207.9 million in the same period in 2020.

Regarding exports: The export turnover of goods to the Swedish market in the first quarter of 2021 decreased more sharply than the decrease in export turnover of the last five months of 2020 and the whole year of 2020 mainly due to the export of phones of all kinds and accessories; computers, electronic products and components fell sharply compared to the same period in 2020.

Meanwhile, exports of consumer goods including: textiles, footwear, bags, suitcases, hats, umbrellas, seafood, etc. to the Swedish market in the first quarter of 2021 with positive growth compared to the same period in 2020.

Notably, statistics show that most of Vietnam's agricultural products have not taken advantage of the Swedish market. To date, in the group of agricultural products, only rubber products have appeared on the statistics table of the General Department of Customs, but with a very modest export volume and turnover.

It is forecast that in the coming months, Vietnam's export of goods to the Swedish market will gradually recover, especially for industrial products such as footwear and apparel when the import demand of this market increases thanks to a clearer economic recovery.

In the first months of 2021, the Swedish economy showed signs of recovery after a recession at the end of 2020. Accordingly, Sweden's economic confidence index in March 2021 was at 105.3, increasing from 103.8 of February 2021 and is the month with the most positive economic confidence index since April 2019.

In the long term, most of Vietnam's exports to the Swedish market still have potential when Vietnam's market share still accounts for a low proportion of total imports of this country.

According to statistics of the International Trade Center (ITC), currently only Vietnam's handicraft products made from bamboo, rattan and leaves account for a large proportion of Sweden's total imports, about 40%; the proportion of footwear of all kinds, accounting for the second highest proportion, also accounts for only about 6%; other items account for less than 2%.

Therefore, when the Covid-19 pandemic is under control, Sweden's consumption and import demand recovered with the incentives from the EVFTA Agreement, Vietnamese goods will have great potential for export growth to this market.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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