Vietnam's business environment in the eyes of US investors: Opportunities still exist

American businesses in Vietnam remain active in investing, recruiting and innovating. Photo: Duc Thanh

Cautious optimism

AmCham in Ho Chi Minh City has just conducted a mid-year market update survey in 2025, aiming to provide an overview of the confidence of member businesses operating in Vietnam in the context of global uncertainties, constantly changing trade policies, and ongoing domestic reform processes. The survey attracted the participation of businesses in many fields, from manufacturing, professional services, logistics, real estate, energy, tourism, to food and beverage.

According to Mr. Travis Mitchell, Executive Director in Ho Chi Minh City of AmCham Vietnam, the latest survey results show that business performance in the first half of 2025 has a clear differentiation between industries, with nearly 1/5 of businesses (18%) achieving results exceeding expectations, mainly concentrated in the logistics sector, some manufacturing segments, and large-scale F&B businesses.

“However, many businesses still face challenges. 29% reported lower-than-expected results, while 12% reported significantly poor performance. This situation is common among small-scale professional services businesses,educational institutions, and some segments of the real estate sector,” said Mr. Mitchell.

The mid-2025 outlook for AmCham member businesses in Vietnam reflects a highly adaptive business environment that is in a period of adjustment and transition.

Regarding the outlook for the second half of 2025, AmCham Vietnam’s Ho Chi Minh City-based Executive Director said that the general sentiment is still cautiously optimistic. “Thirty-nine percent of survey participants are ‘somewhat optimistic’, while 32% are ‘neutral’. Just under 10% expressed ‘strong optimism’ about the short-term outlook. This reflects a business environment that is expecting a recovery, but remains cautious in the face of potential economic challenges,” he added.

Meanwhile, staffing trends generally remained stable. 61% of businesses reported that staff numbers had increased (45%) or remained the same (16%), while only 9% reported staff reductions. This result shows that many businesses are still aiming for long-term growth, even if short-term revenue performance is not really consistent.

In terms of revenue trends, the picture remains mixed. More than half of businesses (52%) reported year-on-year revenue growth, while 29% reported declines. Manufacturing accounts for a significant portion of both groups: some businesses benefited from increased exports, while others were still impacted by tariff concerns and supply chain disruptions.

Positive trends, but challenges remain

Overall, 37% of businesses rated the business environment in Vietnam as “relatively positive”, while 30% had a “neutral” view. Many businesses noted recent progress in administrative reform, especially efforts to reduce paperwork and promote digital government applications.

However, Mr. Mitchell said, there are still many opinions reflecting challenges, such as inconsistent policy implementation, vague regulations, and limited coordination between local authorities. The biggest concern of the majority of businesses today is the potential impact of US tariff policies. More than a third (36%) said they were “extremely concerned” about this issue, while 41% were “somewhat concerned.”

Many businesses said that US trade policies are having a “certain impact”, even a “significant impact” on their business operations. In particular, businesses in the manufacturing and export sectors emphasized the seriousness of the problem, with some even saying that future investment or expansion plans will largely depend on the stability of trade relations.

Growth opportunities amid reform and rebalancing

Despite many challenges, most businesses still believe in the growth potential in the near future. Many companies appreciate Vietnam’s increasingly important role in the global supply chain, especially within the framework of the “China+1” strategy, as a prominent competitive advantage. In addition, the rapid development of the digital economy, increasing domestic consumption demand, and capital flows into infrastructure are considered positive drivers for domestic growth.

In the professional services and logistics sector, many businesses noted increasing demand for technology solutions, regulatory compliance services, and sustainable development practices. In the manufacturing sector, many companies were optimistic as more orders were shifting to Vietnam from other markets in the region. However, most emphasized that positive results would depend on both domestic conditions and the stability of global policies.

The overall picture of AmCham member companies in Vietnam in 2025 reflects a highly adaptable business environment that is in a period of adjustment and transformation. Businesses are still actively investing, hiring, and innovating, but maintaining a cautious stance in the face of many remaining challenges.

However, to fully realize its potential, according to Mr. Mitchell, Vietnam needs to prioritize increasing transparency in tariff policy, ensuring consistent implementation, and accelerating the reform process. “As shared by a business, opportunities still exist, as long as challenges do not become barriers,” Mr. Mitchell said.

Source: https://baodautu.vn/moi-truong-kinh-doanh-viet-nam-trong-mat-nha-dau-tu-my-co-hoi-van-hien-huu-d321159.html