European Firms Maintain Confidence in Vietnam Despite Global Challenges

European businesses remain optimistic about Vietnam’s long-term economic prospects, according to the latest Business Confidence Index (BCI) released by the European Chamber of Commerce (EuroCham) in Vietnam. Despite rising global uncertainty and slower-than-expected domestic reforms, the country continues to be seen as a resilient and promising investment destination.

In the second quarter of 2025, the BCI dipped slightly to 61.1, reflecting cautious sentiment amid ongoing global market turbulence and trade tensions. Nevertheless, 72% of surveyed European enterprises indicated they would still recommend Vietnam as a long-term investment location.

The lack of resolution following the third round of Vietnam-U.S. trade negotiations in June has added uncertainty, particularly regarding tariffs, which continues to influence business strategy, especially for companies with cross-border operations.

While some companies remain neutral or cautious in their outlook, most have not experienced major financial setbacks. The vast majority reported stable operations, and only a small portion faced penalties, cancelled orders, or renegotiations. A few even reported positive gains.

Overall, the report underscores that European firms in Vietnam are adopting a prudent “wait-and-see” approach, staying optimistic while closely monitoring evolving trade and economic conditions.