European business confidence in Vietnam at three-year high

Photo caption — Workers work at the factory of Victory International Co., Ltd. (Vietnam). Illustrative photo: Minh Hung/VNA

Maintain confidence in stable investment destination

Specifically, the BCI Index in the third quarter of 2025 increased to 66.5 points, exceeding the level recorded before the imposition of reciprocal tariffs from the United States and reaching its highest peak in the past three years. This demonstrates the adaptability of European businesses in the context of a volatile global economy .

In addition, the BCI Index Report for the third quarter of 2025 not only reflects the macroeconomic picture, but also records the structural shifts that are quietly reshaping the business environment in Vietnam, from visa and work permit policy reform, green investment flows... to efforts to digitize administrative procedures. All these movements are clearly outlining the view of the European investor community on the future of Vietnam as an economy full of potential.

“Maintaining confidence in an uncertain world is remarkable, especially when geopolitical tensions, technological transformation and climate challenges are reshaping global trade and investment strategies,” said EuroCham Chairman Bruno Jaspaert.

Chairman Bruno Jaspaert also analyzed that the BCI Index Report for the third quarter of 2025 showed a strong improvement in business sentiment with 80% of survey participants expressing optimism about the prospects for the next 5 years and 76% saying they would recommend Vietnam as an investment destination. At the same time, Vietnam's attractiveness remains strong despite external factors.

FTSE Russell’s recent upgrade of Vietnam’s stock market from “frontier” to “secondary emerging” further reinforces this BCI’s results, demonstrating the growing confidence of international investors and Vietnam’s rising position on the global investment map. This business confidence also goes hand in hand with Vietnam’s growth ambitions, with nearly half (42%) of businesses participating in the survey believing that Vietnam will achieve its GDP growth target of 8.3–8.5% in 2025, while 23% remain neutral and 35% are cautious.

Mr. Thue Quist Thomsen, CEO of Decision Lab, said that although the cautious sentiment still prevails in the short-term assessment, optimism has become more evident when discussing the future. Typically, in the BCI Index Report for the third quarter of 2025, 68% of businesses expect the economy to stabilize and improve in the next quarter, an increase of 18 percentage points compared to the second quarter of 2025. This is a signal that the European business community is looking forward to a period of strong growth at the end of the year.

The results of the BCI Index Report for the third quarter of 2025 once again affirm Vietnam's position as one of the most promising European investment destinations in Asia, but in an increasingly volatile and unpredictable world , optimism needs to be anchored on the foundation of flexible reforms and resilient adaptability. The business community points out that Vietnam's long-term competitiveness depends on the efficiency of the administrative apparatus, the consistency and transparency of the legal framework between localities.

Remarkable administrative reform

Administrative efficiency remains one of the biggest challenges facing European businesses in Vietnam, with 65% of businesses saying that complex procedures are hindering business operations. Specifically, tax-related processes, especially value-added tax (VAT) refunds, remain difficult, while inconsistent interpretation and application of work permit regulations across localities continue to create operational barriers.

However, a major step forward was recorded in August 2025, when the Vietnamese Government issued a series of new Decrees to modernize visa and work permit regulations, aiming for a more transparent, consistent and predictable process. Accordingly, it is possible to mention the issuance of work permits allowing online application, reducing experience requirements for experts in new key occupations, expanding the subjects exempt from work permits, and simplifying many administrative procedures.

Vietnam has introduced a temporary visa exemption policy for a number of foreign groups who have made positive contributions to socio-economic development, demonstrating a more flexible approach in attracting international talent. Vietnam has also expanded its visa exemption policy to 18 EU member states, aiming to enhance connectivity and exchange between Vietnam and Europe.

According to the BCI Index Report Q3/2025, nearly half (48%) of businesses said that these reforms have had a positive impact on their operations. While 42% said that the impact is still unclear, mainly due to transitional issues in the early stages of implementation. Nevertheless, some of the new Decrees have marked an important step towards a more open and friendly business environment, in line with EuroCham’s long-term recommendations.

EuroCham Chairman Bruno Jaspaert stressed that as Vietnam aims to become a developed, high-income country in the next two decades, talent mobility and skills transfer must be at the heart of this journey. Current reforms are key to ensuring that international expertise can move flexibly to where it is needed most, to foster innovation and enhance the competitiveness of Vietnam’s private sector.

The results of the BCI Report for the third quarter of 2025 once again affirm Vietnam’s position as one of the most promising European investment destinations in Asia, but in an increasingly volatile and unpredictable world, optimism needs to be anchored on the foundation of flexible reforms and resilient adaptability. The business community believes that Vietnam’s long-term competitiveness depends on the consistency and transparency of the legal framework between localities, as well as the efficiency of the administrative apparatus.

Mr. Julien Guerrier, EU Ambassador to Vietnam, added that Vietnam’s growth trajectory is truly impressive, but there is still room to unlock the enormous potential of the EU-Vietnam Partnership through a transparent and internationally-standardized regulatory system, along with consultation with the business community in the process of developing new policies. EuroCham’s role in conveying the voice and perspective of European businesses, in line with the goal of contributing to promoting Vietnam’s green and digital transformation, is an indispensable factor for the common success.

Source: https://baotintuc.vn/kinh-te/niem-tin-doanh-nghiep-chau-au-tai-viet-nam-cao-nhat-trong-ba-nam-qua-20251014145426969.htm