European businesses still maintain confidence in Viet Nam’s long-term growth trajectory

The Chamber officially released the Q2 2025 edition of the Business Confidence Index (BCI), revealing an evolving but still resilient outlook among European businesses operating in Viet Nam.

This quarter's BCI offers critical insight into the shifting contours of Viet Nam's trade and investment landscape. From rising tariffs and administrative burdens to the growing traction of the EU-Viet Nam Free Trade Agreement (EVFTA), the data underscores the evolving opportunities and persistent challenges for European investors.

"European businesses in Viet Nam remain confident in the investment climate," remarked EuroCham Chairman Bruno Jaspaert. "Around three in every four (72 percent) surveyed business leaders would recommend Viet Nam as an investment destination – and this has been a consistent trend across recent BCI reports. That level of consistency speaks volumes."

Although concerns around sourcing strategies and supply chain resilience are rising, only 15 percent of respondents reported net negative financial impacts – including penalties, cancelled orders, or price renegotiations. Notably, 70 percent said they had experienced no measurable impact, and 5 percent even reported net gains thus far.

The Q2 2025 BCI reaffirms Viet Nam's status as a leading destination for European investment. But sustaining this trajectory will require continued commitment to reform and responsiveness to business needs.

"European companies are clear about what they need: streamlined procedures, harmonized regulations, simplified work permits, tax refunds, and customs frameworks, and improved cross-border trade facilitation. These are not just business asks, but they are preconditions for high-quality, sustainable FDI. With clearer rules and stronger reform commitments, Viet Nam is on the cusp of becoming a magnet for high quality investment and sustainable development," EuroCham Chairman Bruno Jaspaert said./.