European business confidence in Vietnam has climbed to its highest level in seven years, according to the latest Business Confidence Index (BCI) released by EuroCham, as reported by Vietnam Investment Review.
The Q4 2025 BCI rose by 13.5 points to reach 80, marking one of the strongest quarterly increases since the index was launched in 2011. The improvement reflects broad-based gains across both current business conditions and future expectations, with 65 per cent of respondents rating their current situation as positive and 69 per cent expressing confidence in the outlook for early 2026.
The results also exceeded expectations from the previous quarter, suggesting that business performance in late 2025 was stronger than many firms had anticipated.
EuroCham chairman Bruno Jaspaert said the surge in confidence reflected tangible improvements on the ground. “Reaching 80 tells us that confidence is now grounded in delivery — in factories running, orders returning and investments being executed. We are seeing a structural shift where Vietnam is transforming into a powerful growth engine within ASEAN,” he said.
The rise in business confidence closely mirrors Vietnam’s recent macroeconomic performance. GDP growth in the fourth quarter of 2025 reached 8.46%, the fastest quarterly expansion since 2007, while full-year growth stood at just over 8% outperforming many international forecasts.
Looking ahead, sentiment remains exceptionally strong, with 88% of respondents optimistic about their medium-term prospects in Vietnam through 2030. In addition, 87% said they would recommend Vietnam as an investment destination to other foreign businesses.
Despite ongoing global trade tensions, particularly around US tariff policies, more than half of respondents said their confidence in Vietnam as an investment location has increased. While larger multinational firms are better positioned to absorb external shocks, smaller companies continue to face greater vulnerability to cost pressures and demand volatility.
Infrastructure development, public investment and regulatory reforms are expected to play a decisive role in sustaining growth in 2026, alongside continued focus on talent, business expansion and the adoption of digital technologies and automation.
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