European businesses remain optimist about Vietnam’s long-term growth potential
The BCI for the second quarter of 2025 recorded a slight dip to 61.1, reflecting heightened global uncertainty. However, the overall sentiment remains one of cautious optimism, with Vietnam still viewed as a resilient and promising investment destination.
Many FDI enterprises have invested big in advanced and modern machinery systems for production. (Photo: VNA)
HCM City (VNA) –ꦍ Despite global market turbulence and some delays in domestic reforms, E🍌uropean businesses continue to express strong confidence in Vietnam’s long-term economic prospects, according to the latest Business Confidence Index (BCI) report released by the European Chamber of Commerce in Vietnam (EuroCham) on June 30.
The BCI for the second quarter of 2025 recorded a slight dip to 61.1, reflecting heightened global uncertainty. However, the overall sentiment remains one of cautious optimism, with Vietnam still viewed as a resilient and promising investment destination.
This quarter BCI results showed a shift in Vietnam’s trade and investment environment. From rising tariffs and administrative burdens to the growing traction of the EU-Vietnam Free Trade Agreement (EVFTA), the data underscores the evolving opportunities and persistent challenges as well as shaping the strategy of European investors in Vietnam. Specifically, 72% of surveyed enterprises said they would recommend Vietnam as an investment destination with long-term potential.
As international trade tensions mount and supply chains remain under pressure, European businesses in Vietnam are showing remarkable resilience. Among the key factors influencing sentiment is the unresolved impact of the US's tariffs. Following the third round of Vietnam – US trade negotiations in June with no definitive outcomes, uncertainty over tariff adjustments continues to weigh on strategic planning, particularly for companies managing cross-border supply chains. Open-ended responses from this BCI survey repeatedly flagged these evolving cards as a concern – not yet a crisis, but a watchpoint.
Thue Quist Thomasen, CEO of Decision Lab, EuroCham’s BCI survey partner, noted that the recent decline in the percentage of firms expressing confidence in Vietnam’s Q3/2025 economic stability - from 58% to 50% - does not indicate rising pessimism. This shift reflects a more cautious stance in the face of a volatile international environment, not a downturn in confidence, he said.
In fact, only 11% of respondents foresee a negative outlook in the coming months, while 39% remain neutral and 43% still rate their business prospects as “Good” or “Excellent.” This suggests that most companies are adopting a prudent “wait-and-see” approach rather than anticipating a downturn.
Thanks to the EVFTA, the leather and footwear industry has been able to maintain its exports to the EU market. (Photo: VNA)
Despite global headwinds, European companies in Vietnam report limited direct financial impact. Just 15% of businesses said they had experienced net negative outcomes such as penalties, canceled orders, or price renegotiations. Meanwhile, 70% reported no significant disruptions, and 5% even noted net gains.
“As geopolitical shifts continue to redraw global supply chains, having a clear and verifiable origin story for products is becoming a key competitive advantage,” said EuroCham Chairman Bruno Jaspaert.
Since May 5, the Ministry of Industry and Trade (MoIT) has taken over the Certificate of Origin (C/O) issuance process with plans to roll out a fully digital system nationwide. This move is widely welcomed by the business community as it is expected to reduce paperwork, improve turnaround times, and integrate more seamlessly with digital customs systems and electronic signatures.
“This push toward digitalisation is not just about reducing paperwork – it’s about positioning Vietnam as a trusted, future-ready trade partner,” Jaspaert said. He added that strengthening Vietnam’s domestic value chain and increasing the share of authentically ‘Made in Vietnam’ products would offer a major advantage in global markets.
The C/O not only ensures access to preferential tariffs under agreements like the EVFTA but also enhances trust in the origin and quality of Vietnamese exports. According to the BCI survey, 56% of European firms operating in Vietnam submit C/O documentation regularly on a monthly basis./.
State President Luong Cuong noted the country’s steadfast foreign policy of independence, self-reliance, multilateralism, and diversification. A responsible member of the international community, Vietnam supports resolving disputes peacefully in accordance with international law, firmly opposing all forms of using or threatening to use force in international relations.
Hang said that the EVFTA is likened to a “modern expressway” that has strongly promoted trade relations between the two sides, and also helped enhance Vietnam’s position as an attractive investment destination in the region.
The first quarter of this year saw the registration of 36,400 new businesses, on par with 2024 but up around 1.2 times compared to same time in the 2017–2023 period. Notably, the amount of newly-registered capital also rose by about 1.5% year-on-year.
With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is 26,311 VND/USD and the floor rate 23,805 VND/USD.
Unlike familiar fees such as discounts, shipping or advertising fees, the "platform infrastructure fee" is a new charge applied by Shopee across the system.
The circular, effective from July 1, regulates two entities authorised to issue C/O: the ministry’s Agency of Foreign Trade and organisations authorised by provincial and municipal People’s Committees.
The centre will be directly overseen by State agencies and tasked with verifying the validity of real estate projects, connecting public data sources and streamlining property transactions to ensure the market transparency.
A new trend has also emerged. While capital flow previously led the charge in boosting the retail sector, it is now the retail brands themselves that are reshaping the market. Expansion by fashion, cosmetics, furniture and F&B brands is setting the pace for sector growth and driving renewed investor interest.
The forum is a structured journey of dialogue, moving from local to national levels, from grassroots realities to policy formulation, from the voice of entrepreneurs to government commitments. Its outcomes will be compiled in the Vietnam Private Sector White Paper 2025, offering specific and actionable policy recommendations to the Government, ministries, and local authorities.
Both the IMF and OECD believe that with solid macroeconomic fundamentals, a clear reform agenda, and active involvement from the private sector, Vietnam is well-positioned to maintain stable growth and enhance its position in global value chains.
Economic experts described this as a major shift in tax administration aimed at enhancing the efficiency of tax collection from the fast-growing online business sector, which still faces gaps in data transparency and tax declaration compliance.
The National Data Development Fund has been established, operating as a non-budget state financial fund with an initial capital of 1 trillion VND (38.4 billion USD).
Games developed by Vietnamese teams recorded 9.6 billion downloads in 2024. In the first six months of 2025, this number already hit 5.2 billion downloads. Downloads for all of 2025 are expected to surpass 10.3 billion, a year-on-year growth of over 7.7%.
Vietravel Airlines has approved a plan to increase its charter capital to 2.6 trillion VND (99.6 million USD) in an effort to bolster financial capacity to expand its fleet and operations.
Prime Minister Pham Minh Chinh appreciated JBIC's support in policy dialogue, as well as its provision of numerous loans to promote Japanese investment in Vietnam through key infrastructure and energy projects.
Comprising members who work and conduct research at investment banks, asset management funds, fintech companies, and strategic financial consulting firms, Vietnam Finance and Investment Association in the United Kingdom is well-positioned to stay abreast of global trends, international standards, and effective operational models of the modern financial industry.
In recent years, fruit farmers have applied science and technology to cultivation in an effort to improve productivity, fruit quality, and income value.
Featuring over 150 Vietnamese products from fresh and processed fruits to beverages, sauces, noodles, and coffee the space aims to introduce Russian consumers to Vietnam’s diverse cuisine and cultural offerings.
Under Resolution No. 204/2025/QH15 of the National Assembly, the 2% reduction in VAT is scheduled to take effect from July 1 and remain valid until December 31, 2026.
Vietnam’s NetZero Pallet, which specialises in manufacturing and exporting storage and transport pallets from recycled agricultural waste, was one of two top winners of the 2025 Small Business Champions Competition, held by the World Trade Organisation (WTO).
