Vietnamese businesses are targeting ASEAN and European markets amid concerns over US tariffs, according to the UOB Business Outlook Study 2025. – Photo courtesy of UOB Vietnam

HCM CITY – Despite the announcement of 46 per cent US reciprocal tariffs on Vietnamese exports, 60 percent of Vietnamese businesses remain optimistic about the year ahead, and nearly half of them plan to accelerate overseas expansion, according to the UOB Business Outlook Study.

Conducted online in January, the study surveyed 4,200 businesses across ASEAN and Greater China, including 525 in Việt Nam.

After the US reciprocal tariffs announcement in early April, an added dipstick survey was done of 800 businesses from April 9 to 12.

The US government has paused its decision for 90 days to allow for negotiations, offering Vietnamese businesses the opportunity to control rising costs and stabilise supply chains.

Over half (52 per cent) expected raw material and production costs to increase, while 30 per cent expressed concern about growing inflation. 

They are currently diversifying suppliers, boosting the use of local materials, and reducing reliance on the US market.

They also prioritise digitalisation and sustainability, with 61 per cent and 56 per cent, respectively, planning to further invest in these areas.

They expect this to help enhance operational efficiency, improve customer experience, attract investors, and strengthen their reputation.

They are also seeking support from the government and financial institutions to cope with current challenges.

They want financial relief from the tariffs, such as targeted subsidies or tax exemptions for the most affected sectors.

They are calling for longer-term support, including bilateral trade agreements with key markets and assistance with supply chain relocation.

Lim Dyi Chang, head of commercial banking, UOB Vietnam, said: "We remain optimistic about Việt Nam’s economic outlook despite the recent tariff uncertainties. The country’s sound fundamentals, recent policy reforms and the swift actions taken by the business community are encouraging.

“These developments also present an opportunity for Vietnamese firms to re-calibrate their strategies to reduce over-reliance on individual export markets and to tap into the growing strength of intra-ASEAN trade.”

Overseas expansion remains a priority for Vietnamese businesses, with nearly 70 per cent foreseeing growth in intra-ASEAN trade.

Some 90 per cent are looking to scale beyond the domestic market to drive revenues and profits. 

The study found that ASEAN is a key destination for Vietnamese businesses, particularly Thailand and Singapore.

Furthermore, the European market is viewed as a key area for the nation's present and future growth.

Supply chain management remains a top priority with three key challenges identified, including rising costs, disruptions to existing supply routes, and inventory management issues.

Businesses are tackling these issues by diversifying suppliers, digitalising their supply chains, and strengthening relationships.

The study also found that 75 per cent of business leaders in Việt Nam identified themselves as next-generation leaders, higher than the region’s 60 per cent average.

They focus on long-term transformation through digital adoption, sustainability and strategic innovation. 

They leverage technologies like generative AI, cloud computing, AR, and blockchain more effectively than traditional leaders. – VNS