The Swedish government Thursday formally decided to halt an adoption programme with Vietnam over fears of irregularities, reported dpa.
Health and Social Affairs Minister Goran Hagglund said the decision hinged on the government's concern that "the rights of the individual child and biological parents are taken into account."
Hagglund's statement issued after the cabinet meeting said there were "disturbing signals" that children may even have been trafficked.
In September, the United States suspended adoptions from Vietnam over similar concerns.
The current Swedish agreement with Vietnam is due to expire in the autumn of 2009.
A delegation from the Swedish Health and Social Affairs Ministry was next month slated to visit Vietnam to discuss how to wind down the adoption programme.
The Swedish adoption agency Adoptionscentrum, which has handled thousands of international adoptions since 1969, has said the decision was a "severe blow" to families waiting to adopt.