European Companies Bullish On Vietnam Investment Outlook
The European Chamber of Commerce in Vietnam (EuroCham) released the Q3 2025 edition of its Business Confidence Index (BCI) on October 14, revealing renewed optimism among European companies operating in the country. The BCI climbed to 66.5 points, surpassing pre-US tariff levels and marking its highest level in three years.
The report, conducted by Decision Lab, highlights structural shifts shaping Vietnam’s business environment, including reforms in visa and work-permit policies, growing momentum for green investment, and ongoing digitalisation of administrative procedures. These changes signal strong confidence in Vietnam’s future prospects.
EuroCham Chairman Bruno Jaspaert noted that 80% of survey respondents are optimistic about their prospects over the next five years, while 76% would recommend Vietnam as an investment destination. The recent upgrade of Vietnam’s stock market status from “frontier” to “secondary emerging” by FTSE Russell further underscores growing international investor confidence.
Nearly half of respondents (42%) believe Vietnam will achieve its 2025 GDP growth target of 8.3–8.5%. Decision Lab CEO Thue Quist Thomsen added that 68% of firms expect economic stabilization and improvement in the next quarter, up 18 percentage points from Q2 2025.
Administrative inefficiency remains a challenge, with 65% of firms citing procedural burdens, particularly in VAT refunds and work-permit rules. However, recent government reforms in August 2025 including Decrees 219, 221 and 229, have simplified visa and work-permit processes, expanded exemptions, and improved talent mobility. Nearly half of surveyed companies reported these measures have already positively impacted their operations.
Jaspaert emphasized that talent mobility and skills transfer are crucial for Vietnam’s goal of becoming a high-income nation, noting that reforms will strengthen innovation and private-sector capacity.
The Q3 2025 BCI reaffirms Vietnam’s position as a top destination for European investment in Asia, though businesses stress that long-term competitiveness depends on consistent regulations, predictable policies, and efficient administration. EU Ambassador to Vietnam Julien Guerrier highlighted the importance of transparent rules and collaboration with the business community to accelerate Vietnam’s green and digital transition.
