Recently, the European Chamber of Commerce in Vietnam (EuroCham) released the results of its Business Confidence Index (BCI) Survey for the fourth quarter of 2025. The findings reaffirm that Vietnam continues to be highly regarded by the international business community, particularly European enterprises, as an attractive destination for manufacturing and trade-related investment flows in the coming period.

According to EuroCham, the BCI for Q4-2025 reached 80.0 points, the highest level recorded in seven years. This result reflects a clear and sustained recovery in business confidence, despite ongoing uncertainties in the global economic landscape. Notably, this optimism is not merely short-term in nature, but is underpinned by positive assessments of Vietnam’s medium- and long-term investment outlook.

The survey indicates that as many as 88% of European enterprises are optimistic about Vietnam’s development prospects for the 2026 - 2030 period, with 31% describing themselves as “very optimistic.” In particular, 87% of respondents stated that they are willing to recommend Vietnam as an investment destination to other foreign businesses. This high level of endorsement suggests that confidence has moved beyond internal assessments to become tangible “investment credibility,” helping to reinforce Vietnam’s image as a promising manufacturing and trade hub in the region.

Such confidence is further supported by favorable business performance results. In 2025, 60% of European enterprises operating in Vietnam reported improved business performance compared to the previous year, while 82% expect continued growth in 2026. These figures reflect strong confidence in domestic purchasing power, local production capacity, and the prospects for expanding supply chains and distribution networks.

Against the backdrop of increasingly selective global FDI flows, these outcomes are seen as key drivers attracting investment into Vietnam’s processing and manufacturing industries, trade, logistics, and related services. In practice, many European enterprises highly value Vietnam’s macroeconomic stability, market size, abundant labor force, and strategic position within regional and global value chains.

Notably, business confidence has been reinforced by Vietnam’s robust economic growth performance. In the fourth quarter of 2025, GDP expanded by 8.46% - the fastest quarterly growth rate since 2007, bringing full-year growth to over 8%. This performance not only exceeded the expectations of many international institutions, but also provided a solid, tangible basis for investment expansion decisions, particularly in manufacturing and trade.

Nevertheless, the survey also highlights persistent challenges. Administrative procedures and an uneven regulatory framework remain among the top concerns for businesses. Encouragingly, however, the proportion of enterprises citing administrative burdens as a major obstacle has declined compared to previous quarters, reflecting initial progress in reform efforts. Resolution No. 68/2025 on private sector development and administrative reform is viewed by the business community as a step in the right direction, although further time is needed for policies to be implemented consistently and effectively in practice.

In the medium term, European enterprises expect public investment, infrastructure development, and improved logistics connectivity to remain key growth drivers, creating additional room for expansion in manufacturing and trade sectors. At the same time, accelerating digitalization, enhancing policy predictability, and improving workforce quality are seen as critical factors for Vietnam to sustain and further strengthen its investment attractiveness.

With high levels of optimism, positive business outcomes, and a strong willingness to recommend Vietnam as a reliable investment destination, the European business community is sending a clear message: Vietnam is not only a safe destination in the short term, but also a strategic choice for manufacturing and trade investment flows in the 2026 - 2030 period and beyond.