Sweden says it will not extend an adoption agreement with Vietnam beyond next year.
A government spokesman says the decision has been made because of concerns over corruption and possible baby-selling.
Sweden sent a fact finding delegation to Vietnam last month.
The spokesman says Sweden would consider renewing its adoption agreement once it felt assured that Hanoi had addressed its concerns.
Earlier this year, Vietnam ended its adoption agreement with the United States after the publication of an official US report alleging corruption in the adoption process.