Vietnam's business environment in the eyes of US investors: Opportunities still exist

American businesses in Vietnam remain active in investing, recruiting and innovating. Photo: Duc Thanh

Cautious optimism

AmCham in Ho Chi Minh City has just conducted a mid-2025 market update survey, aiming to provide an overview of the confidence of member businesses operating in Vietnam in the context of global instability, constantly changing trade policies, and ongoing domestic reform processes. The survey attracted the participation of businesses in many fields, from manufacturing, professional services, logistics, real estate, energy, tourism, to food and beverages.

According to Mr. Travis Mitchell, Executive Director in Ho Chi Minh City of AmCham Vietnam, the latest survey results show that business performance in the first half of 2025 has a clear differentiation between industries, with nearly 1/5 of businesses (18%) achieving results exceeding expectations, mainly concentrated in the logistics sector, some manufacturing segments, and large-scale F&B businesses.

“However, many businesses still face challenges. 29% said results were below expectations, while 12% recorded a marked decline in performance. This situation is common among small-scale professional services businesses, educational institutions, and some segments of the real estate sector,” Mr. Mitchell said.

The mid-2025 outlook for AmCham member businesses in Vietnam reflects a highly adaptable business environment that is undergoing adjustment and transition.

Regarding the outlook for the second half of 2025, the Ho Chi Minh City-based Executive Director of AmCham Vietnam said that the general sentiment is still cautiously optimistic. “39% of survey participants have a ‘fairly optimistic’ view, while 32% maintain a ‘neutral’ view. Just under 10% expressed a level of ‘strong optimism’ about the short-term outlook. This result reflects a business environment that is expecting a recovery, but still maintains a cautious stance in the face of potential economic challenges,” he added.

Meanwhile, staffing trends generally remained stable. 61% of businesses said that the number of employees had increased (45%) or remained the same (16%), while only 9% reported staff reductions. This result shows that many businesses are still aiming for long-term development, even if short-term revenue performance is not really uniform.

In terms of revenue trends, the picture remains mixed. More than half of businesses (52%) reported an increase in revenue compared to the same period last year, while 29% faced a decline. Manufacturing accounts for a significant share of both groups: some businesses benefited from increased exports, while others were still affected by tariff concerns and supply chain fluctuations.

Positive trends, but challenges remain

In their overall assessment of the business environment in Vietnam, 37% of businesses said it was “relatively positive”, while 30% had a “neutral” view. Many businesses acknowledged recent progress in administrative reform, especially efforts to reduce paperwork and promote digital government applications.

However, Mr. Mitchell said, there are still many opinions reflecting challenges, such as inconsistent policy implementation, vague regulations, and limited coordination between local authorities. The biggest concern of the majority of businesses today is the potential impact of US tariff policy. More than a third (36%) said they were “extremely concerned” about this issue, while 41% were “somewhat concerned.”

Many businesses said that US trade policies are having a “certain impact”, even a “significant impact” on their business operations. In particular, businesses in the manufacturing and export sectors emphasized the seriousness of the problem, with some even saying that future investment or expansion plans will largely depend on the stability of trade relations.

Growth opportunities amid reform and rebalancing

Despite the challenges, most businesses remain confident in the growth potential in the near future. Many companies appreciate Vietnam’s increasingly important role in the global supply chain, especially within the framework of the “China+1” strategy, as a prominent competitive advantage. In addition, the rapid development of the digital economy, increasing domestic consumption demand, and capital flows into infrastructure are considered positive drivers for domestic growth.

In the professional services and logistics sector, many businesses have noted growing demand for technology solutions, regulatory compliance services, and sustainable development practices. In the manufacturing sector, many companies are optimistic as more orders are shifting to Vietnam from other markets in the region. However, most emphasize that positive results will depend on both domestic conditions and the stability of global policies.

The overall picture of AmCham member companies in Vietnam in the year 2025 reflects a highly adaptable business environment, in a period of adjustment and transformation. Businesses are still actively investing, recruiting, and innovating, but maintaining a cautious attitude in the face of many remaining challenges.

However, to fully realize its potential, according to Mr. Mitchell, Vietnam needs to prioritize increasing transparency in tariff policy, ensuring consistent implementation, and accelerating the reform process. “As shared by a business, opportunities still exist, as long as challenges do not become barriers,” Mr. Mitchell said.

Source: https://baodautu.vn/moi-truong-kinh-doanh-viet-nam-trong-mat-nha-dau-tu-my-co-hoi-van-hien-huu-d321159.html