Vietnam leads ASEAN in attracting European businesses

Some 64 percent of respondents said they planned to expand in Vietnam, ahead of Indonesia at 57 percent, Malaysia and Thailand at 49 percent each, Singapore at 44 percent and the Philippines at 43 percent.

The survey, which gathered responses from around 150 European business leaders, also pointed to stronger expectations for trade and investment across ASEAN.

Some 78 percent, expect their companies' trade and investment in ASEAN to increase over the next five years, up from 71 percent in 2025.

Meanwhile, 78 percent of respondents said they planned to expand operations in at least one ASEAN market, with Vietnam and Indonesia continuing to be the top two destinations.

For the fourth consecutive year, ASEAN was seen as offering the strongest economic opportunities, cited by 61 percent of respondents, up from 56 percent last year, according to the survey.

European businesses have shown a firm commitment to ASEAN. Investment appetite has increased, with most companies planning to expand within the region, said Executive Director of the EU-ASEAN Business Council Chris Humphrey.

Despite the positive outlook, ASEAN's trade and investment environment continues to face challenges. 

Some 81 percent of respondents said uncertainty surrounding US tariff policies had made them at least somewhat less confident about operating in ASEAN.