European businesses have highest business confidence in Vietnam in 3 years

This is a positive result showing that European businesses have great confidence in the Vietnamese market, in the context of US tariffs taking effect and many fluctuations in the world.

European businesses at the High-Rise Building Forum event held in Ho Chi Minh City - Photo: EUROCHAM

On October 14, the European Chamber of Commerce in Vietnam (EuroCham) said that the Business Confidence Index (BCI) for the third quarter of 2025 increased to 66.5 points, exceeding the score recorded before the US tariff policy took effect and reaching its highest peak in the past 3 years.

The figures demonstrate a clear sense of optimism among the European business community operating in Vietnam, and demonstrate the resilience and adaptability of these businesses in the face of a volatile global economic environment.

In the latest survey, the proportion of European businesses confident in the stability and improvement of the Vietnamese economy increased significantly (+18 points). Meanwhile, the proportion of businesses predicting difficulties decreased (-4 points), reflecting the overall optimistic sentiment.

“Maintaining confidence in an uncertain world is important, especially when geopolitical tensions, technological transformation and climate challenges are reshaping global trade and investment strategies,” said EuroCham Chairman Bruno Jaspaert.

Not only reflecting the macroeconomic picture, EuroCham's BCI report for the third quarter also reflects many efforts of change and transformation that are quietly reshaping the business environment in Vietnam.

According to EuroCham, after a period of tension over reciprocal tariffs from the US in the second quarter, the BCI index recovered from 61.1 to 66.5 points in the third quarter, thanks to Vietnam's proactive negotiation efforts and measures to promote public investment and administrative reform, showing renewed optimism about the economic outlook and business environment.

Despite being affected by many fluctuations, the trend of shifting supply chains out of Vietnam remains very low: only 3% of businesses are considering adjusting operations outside of Vietnam, while another 3% are considering expanding or adjusting operations within the country.

This once again affirms Vietnam as a reliable and sustainable production and investment destination in the regional value chain.

Despite the Government ’s reforms, administrative efficiency remains one of the biggest challenges facing European businesses in Vietnam, with 65% of businesses saying that complicated procedures are hindering business operations.

Tax-related processes, especially value-added tax (VAT) refunds, remain cumbersome, while inconsistent interpretation and application of work permit regulations across localities continue to create operational hurdles.

But European businesses also say they have benefited from recent administrative improvements, particularly in visa and work permit regulations for foreigners.

According to Mr. Jaspaert, as Vietnam aims to become a developed, high-income country in the next two decades, talent mobility and skills transfer need to be considered a focus.

Many European businesses believe Vietnam's GDP will grow by more than 8%

80% of businesses participating in EuroCham's survey expressed optimism about the prospects over the next five years, and 76% said they would recommend Vietnam as an investment destination.

Besides, nearly half (42%) of businesses participating in the survey believe that Vietnam will achieve the GDP growth target of 8.3 - 8.5% in 2025.

NGHI VU

Source: https://tuoitre.vn/doanh-nghiep-chau-au-co-niem-tin-kinh-doanh-tai-viet-nam-cao-nhat-trong-3-nam-20251014171959345.htm