European businesses remain optimistic in Vietnam: Eurocham

After a period of U.S. reciprocal tariff pressures, the BCI rebounded from 61.1 in the second quarter to 66.5 points in Q3, surpassing pre-tariff levels and marking its highest reading in three years.

This recovery highlights the resilience and adaptability of European enterprises amid global economic uncertainties and shifting trade policies.

EuroCham Vietnam attributed the index’s improvement to Vietnam’s proactive trade and tariff negotiations with the U.S., as well as the government’s efforts to boost public investment and streamline administrative reforms.

According to the survey, 68 percent of European firms in Vietnam expressed confidence in the country’s economic stability and improvement in the next quarter, up 18 percentage points from Q2, signaling expectations of a strong year-end performance.

Meanwhile, 80 percent were optimistic about Vietnam’s five-year outlook, and 76 percent said they would recommend the country as an investment destination.

The share of businesses anticipating difficult conditions fell by four percentage points, further reflecting the upbeat sentiment.

Despite global headwinds, only three percent of the respondents considered relocating operations abroad, while another three percent planned to expand or adjust activities within Vietnam.

“These results show a steady confidence that stands out in a world marked by volatility and uncertainty, where geopolitics, technology shifts, and climate change are reshaping trade and investment strategies,” EuroCham Vietnam chairman Bruno Jaspaert said in a press release.

Survey data also revealed that 42 percent of the respondents believed Vietnam could achieve its GDP growth target of 8.3–8.5 percent in 2025, while 23 percent remained neutral and 35 percent expressed reservations.

According to official statistics, Vietnam’s GDP grew 8.23 percent year on year in Q3, underscoring its strong momentum and reinforcing its reputation as a reliable and sustainable destination for regional production and investment.

Despite progress, administrative inefficiency remains one of the biggest challenges for European businesses, with 65 percent citing complex procedures as obstacles.

Tax-related processes, particularly value-added tax (VAT) refunds, continue to pose difficulties, while inconsistent interpretations of work permit rules across provinces create additional barriers.

Nevertheless, many firms acknowledged improvements in administrative procedures, especially regarding new decrees on visas and work permits for foreign workers.

According to EuroCham Vietnam, the Q3 2025 BCI reaffirms Vietnam’s position as one of the most promising destinations for European investment in Asia.

Yet, as global volatility intensifies, sustained optimism must rest on continued reform and resilience.

Respondents consistently emphasized that Vietnam’s long-term competitiveness depends on regulatory predictability, provincial consistency, and administrative efficiency.

“Vietnam’s growth trajectory is impressive, but there is still scope to unlock the full potential of the EU–Vietnam partnership through predictable, transparent rules aligned with international standards and greater business involvement in new regulations,” said EU Ambassador to Vietnam Julien Guerrier.