Q2 business confidence reaches seven-year high

The Q2 2026 Business Confidence Index (BCI) report reveals a renewed surge in European business confidence, with the index rising to 79.7 points in Q2 from 72.7 in Q1, underscoring Viet Nam's resilience amid volatile global environment.

Marking the 15th anniversary of EuroCham's flagship Business Confidence Index (BCI), this quarter's reading stands just 0.3 point below the seven-year peak of 80.0 recorded in late 2025.

The momentum signals renewed appetite among European investors to expand operations in one of Southeast Asia's fastest-growing economies, reaffirming long-term confidence following a period of heightened global uncertainty.

"This quarter's findings demonstrate the incredible, almost tenacious resilience of both Viet Nam's economy and the European businesses operating here," said EuroCham Chairman Bruno Jaspaert.

The first half of 2026 has been a rollercoaster. We entered the year with complex geopolitical wild cards, yet despite a heavy cloud of global uncertainty, our member companies outperformed their own expectations. This index proves that when the weather gets rough, our ecosystem knows how to recalibrate and capture growth.

Conducted in partnership with DXL Research and Consulting, this edition provides one of EuroCham's most comprehensive assessments yet of how European businesses are responding to an increasingly complex global and local environment. Beyond measuring business sentiment, the BCI examines the impact of geopolitical tensions, evolving trade dynamics, administrative reform, and intellectual property protection.

Stronger performance drives optimistic outlook

The survey shows that 63 percent of European businesses reported positive business conditions during Q2, while optimism continued to strengthen, with 69 percent expecting business conditions to remain favorable in the coming quarter.

This wave of optimism represents an 11-percentage-point increase compared to expectations expressed just three months earlier, driven by stronger commercial performance, a healthy influx of new orders, and resilient domestic demand.

The data highlights clear commercial drivers behind this optimism. Among firms reporting improved performance this quarter, 36 percent cited rising revenues, stronger sales growth, and improved operational profitability that consistently outpaced internal forecasts. 

Meanwhile, 32 percent attributed their brighter outlook to growing order books and major new contract wins, while 24 percent pointed to stronger domestic consumer demand. This balanced growth across manufacturing, tourism, real estate, and export-oriented industries suggests that Viet Nam's economy continues to gain momentum.

"These BCI results mirror the broader macroeconomic landscape as Viet Nam solidifies its position as one of Asia's growth champions," Chairman Jaspaert said.

"In the first half of 2026 alone, the national GDP expanded by an impressive 8.18 percent. When you pair that robust growth with Viet Nam's rise to 27th in the IMD World Competitiveness Ranking and its upcoming FTSE Russell upgrade to Secondary Emerging Market status this September, the picture becomes clear. What makes Viet Nam truly stand out in a fiercely competitive regional landscape is a government that not only talks about growth but also formalizes it through national resolutions and actively implements structural reforms to achieve it."

Throughout 2026, the Government has accelerated institutional reforms, administrative restructuring, and investment policies aimed at attracting higher-quality foreign direct investment. Among these is the rollout of Resolution No. 10, which shifts the country's FDI criteria away from low-cost labor and investment volume toward high-tech innovation, advanced technology, and sustainable growth.

"As our businesses become more sophisticated, they require an equally sophisticated regulatory environment," Chairman Jaspaert said. "Predictable regulations, efficient administration, and uniform enforcement are what keep investment capital secure. The more than 80 new and amended laws introduced this year alone mark the beginning of an intensive growth era. EuroCham's role is to serve as a steady bridge connecting on-the-ground business insights with policymakers, ensuring these reforms translate into greater business confidence and encourage companies to anchor their long-term investments in Viet Nam."

Viet Nam among Asia's most promising investment destinations

The Q2 2026 Business Confidence Index sends a clear message: European businesses continue to see Viet Nam as one of Asia's most promising investment destinations.

More than half of respondents (54 percent) now describe Viet Nam as a core strategic market and operational base, while a further 18 percent consider it a key growth market.

These findings reflect a notable shift in how European companies position Viet Nam within their regional and global business strategies. Rather than serving solely as a manufacturing base, Viet Nam is increasingly viewed as a platform for production, sourcing, regional services, and future expansion across Southeast Asia./.