European firms in Vietnam are exhibiting a growing sense of optimism regarding the country’s economic prospects, as reflected in the latest Business Confidence Index (BCI) for Q3 2025, released by the European Chamber of Commerce in Vietnam (EuroCham Vietnam). This index is more than just a number; it encapsulates the sentiments, hopes, and concerns of over 1,200 European businesses operating in Vietnam, making it a vital barometer of the country’s investment landscape.
The recently published BCI has ascended to 49 points, tantalizingly close to the 50-point mark that typically signifies a pivot to optimism. A notable 63% of participants indicated satisfaction or strong satisfaction with the current business climate in Vietnam. This positivity is echoed in the fact that 52% of European businesses are looking to expand their investments within the coming year, reflecting a robust long-term confidence in the rich market potential Vietnam offers.
Dominik Meichle, Chairman of EuroCham Vietnam, asserts that these findings reinforce Vietnam’s status as an essential destination for investment within the region. The appreciation from European businesses is significant, particularly regarding the Vietnamese government’s commitment to refining the legal framework, propelling digital and green transformations, and ensuring macroeconomic stability. These developments signal a supportive environment for foreign investors.
The survey further highlights rising levels of confidence among European companies involved in sectors such as technology, renewable energy, logistics, and green manufacturing. However, there are lingering concerns over increasing operational costs and fluctuations in exchange rates, essential considerations for any business navigating this dynamic market. Additionally, a notable 70% of respondents expressed hopes for further government initiatives aimed at expediting administrative reforms, increasing policy transparency, and investing in green infrastructures.
According to EuroCham, the Q3 2025 BCI serves a dual purpose: it not only reflects the prevailing sentiments of European businesses but also acts as a critical reference point for policy planning and attracting high-quality foreign investments in Vietnam. The survey, conducted by Decision Lab, includes input from companies hailing from 27 EU member states, offering a comprehensive view of the collective European business perspective in the country.
This report underscores Vietnam’s burgeoning role as a key regional supply chain hub, particularly as numerous European enterprises in sectors like supporting industries, pharmaceuticals, and green energy contemplate deepening their investments. Contributing factors such as consistent GDP growth, a youthful workforce, and a welcoming trade environment continue to enhance international business confidence, planting Vietnam firmly on the global investment map.
Emphasizing the strategic importance of Vietnam, Vice Chairman of EuroCham, Jean-Jacques Bouflet, remarked that the Southeast Asian nation is emerging as a vital economic ally for Europe. The sustained confidence shown in this index is not just indicative of stability but also highlights Vietnam’s vast potential during this pivotal phase of green and digital transformation. With so much at stake, the path forward looks bright for European businesses in this vibrant market.
By Ai Van – Translated by Anh Quan