Hanoi (VNA) – Business confidence among European companies in Vietnam has surged to its highest level in seven years, signaling strong recovery and growing optimism despite global geopolitical uncertainties and mounting international trade pressures.
The European Chamber of Commerce (EuroCham) in Vietnam announced that its Business Confidence Index (BCI) for the fourth quarter of 2025 rose sharply to 80 points, the highest level since 2018. The result not only reflects a solid rebound in sentiment but also points to the prospect of a new growth cycle for European investment flows into Vietnam.
After years of external shocks ranging from the COVID-19 pandemic to global supply chain disruptions, European investors sentiment has firmly returned to expansion territory. The BCI survey, conducted by DXL Research & Consulting, recorded a quarter-on-quarter increase of 13.5 points, one of the strongest gains since the index was launched in 2011. The figure also surpassed levels seen before trade tensions and the pandemic.
Survey results show a more positive reality than earlier cautious forecasts. While only 56% of businesses in the third quarter expected favourable conditions, 65% reported positive outcomes in the fourth quarter. Confidence is expected to carry into 2026, with 69% anticipating continued growth in the first quarter.
The improvement in business sentiment aligns closely with Vietnam’s strong macroeconomic performance. GDP growth reached 8.46% in the fourth quarter of 2025, the fastest quarterly expansion since 2007, bringing full-year growth to 8.02%. The figures helped ease concerns about Vietnam’s growth prospects following new tariff measures announced by the United States.
EuroCham Chairman Bruno Jaspaert said the latest BCI confirms what businesses have been experiencing on the ground. After years of fluctuating around neutral levels, the rise to 80 indicates that confidence is now supported by tangible improvements rather than expectations alone.
Factories are operating steadily, orders are gradually recovering, and investment decisions are being reactivated, he noted. According to Jaspaert, Vietnam is entering a period of structural transformation, strengthening its role as a key growth engine and aiming to position itself among ASEAN’s top three economies.
European businesses are also placing strong bets on Vietnam’s medium-term outlook. The survey found that 88% of respondents are optimistic about the country’s prospects for 2026–2030, with nearly one-third describing themselves as “very optimistic.”
This confidence is backed by business performance. In 2025, 60% of companies reported improved results compared to the previous year, while 82% expect further growth in 2026. As many as 87% said they would recommend Vietnam as an investment destination to foreign partners, particularly large corporations.
Despite the positive outlook, challenges persist. Global trade tensions, especially US tariff policies, remain the top concern, identified by 46% of surveyed businesses.
DXL Research & Consulting General Director Xavier Depouilly noted that resilience varies across company sizes. While large corporations can leverage scale to pursue long-term strategies, small and medium-sized enterprises face greater pressure and are more focused on short-term survival.
To adapt, companies are undertaking strategic adjustments. About 41% are optimizing costs, while 35% are accelerating the adoption of digital technologies and artificial intelligence to improve productivity.
Administrative procedures and regulatory issues continue to be major obstacles. Although concerns about administrative burdens fell by 12 percentage points from the previous quarter, they remain a challenge for 53% of businesses. Regulatory inconsistencies (52%), along with customs and visa procedures, are still causing delays and increasing compliance costs.
The Government has introduced several measures to address these issues, including Resolution 68 issued in May 2025 and major infrastructure projects launched later in the year. However, policy implementation remains slow. Around 61% of businesses said they have not yet felt clear benefits from these reforms.
Similarly, while the national digital identity platform VNeID has achieved a high registration rate of 76%, about 24% of businesses reported difficulties and called for more flexible access and targeted support.
In 2026, European businesses emphasised the need for consistency and faster execution of reforms. Over the next 12–18 months, expansion plans (50%) and workforce development (45%) are identified as top priorities.
Jaspaert affirmed EuroCham’s commitment to supporting Vietnam’s reform efforts, saying the organisation will continue advocating for solutions to remove remaining bottlenecks and promote regulatory improvements that deliver practical benefits for both small businesses and multinational corporations.
