HCMC – European business confidence in Vietnam rose to 80 points in the fourth quarter of 2025, the highest level in seven years, according to the Business Confidence Index released by the European Chamber of Commerce in Vietnam (EuroCham).
The index increased by 13.5 points from the previous quarter, marking one of its sharpest quarterly gains since it was introduced in 2011, EuroCham said on January 13.
The improvement was broad-based, covering both assessments of current business conditions and expectations for the period ahead. In the fourth quarter, 65% of surveyed companies rated the business environment as positive, rising to 69% for the first quarter of 2026.
Business performance exceeded earlier expectations. In a survey conducted in the third quarter, only 56% of firms had expected favorable conditions in Q4, compared with the higher level reported in the latest results.
EuroCham said the rise in confidence coincided with stronger macroeconomic conditions. Vietnam’s gross domestic product grew 8.46% in the fourth quarter of 2025, the highest quarterly growth rate since 2007, supported by improved demand, order volumes and investment activity.
Looking ahead, 88% of European firms said they were optimistic about the 2026–2030 period, including 31% who described themselves as very optimistic. In 2025, 60% reported improved business results from the previous year, and 82% expect further improvement in 2026. About 87% said they would recommend Vietnam as an investment destination.
External pressures remain. In 2025, 42% of companies reported a net negative impact from global trade tensions, particularly tariffs and major trade disputes, with smaller firms more affected than larger ones.
Domestically, administrative procedures remained the top concern, though the share of firms citing this issue fell to 53%, down 12 percentage points from the third quarter. EuroCham said recent reforms, including Resolution 68 issued in May 2025, were viewed positively in principle, but their practical impact would take time to materialize.
