An aerial view of DEEP C Industrial Zone in Hải Phòng, a key project backed by European investors. — Photo courtesy of the firm

HÀ NỘI — Around three in every four (72 per cent) business leaders would recommend Việt Nam as an investment destination, a survey has revealed, underscoring a consistent trend across recent Business Confidence Index (BCI) reports.

Speaking at the European Chamber of Commerce in Việt Nam (EuroCham)’s release of the Q2 2025 edition of the BCI, EuroCham Chairman Bruno Jaspaert, said this level of consistency "speaks volumes".

The BCI reveals an evolving but still resilient outlook among European businesses operating in Việt Nam. The index eased slightly to 61.1 amid global uncertainty, but the overarching message remains one of tempered optimism. Despite turbulence in international markets and temporary bottlenecks in domestic reforms, businesses maintain confidence in Việt Nam’s long-term growth trajectory.

This quarter’s BCI offers critical insight into the shifting contours of Việt Nam’s trade and investment landscape. From rising tariffs and administrative burdens to the growing traction of the EU- Việt Nam Free Trade Agreement (EVFTA), the data underscores the evolving opportunities and persistent challenges for European investors.

This steady confidence stands in contrast to the growing turbulence in global markets. As international trade tensions mount and supply chains remain under pressure, European businesses in Việt Nam are showing remarkable resilience.

Among the key factors influencing sentiment is the unresolved impact of US tariffs. Following the third round of Việt Nam–US trade negotiations in June with no definitive outcomes, uncertainty over tariff adjustments continues to weigh on strategic planning, particularly for companies managing cross-border supply chains. Open-ended responses from this BCI survey repeatedly flagged these evolving cards as a concern – not yet a crisis, but a watchpoint.

While business leaders are increasingly alert to rising global trade instability, most are yet to feel major financial impacts on the ground. The geopolitical environment continues to evolve, but so far, the effects on European businesses in Việt Nam remain limited.

Although concerns around sourcing strategies and supply chain resilience are rising, only 15 per cent of business leaders surveyed reported net negative financial impacts – including penalties, cancelled orders or price renegotiations. Notably, 70 per cent said they had experienced no measurable impact, and 5 per cent even reported net gains.

Certificate of Origin: a strategic asset in trade diplomacy

One of the tools helping businesses maintain this resilience is the Certificate of Origin (C/O): a strategic asset that underpins preferential trade access and trust in increasingly complex global markets. More than just a formality for tariffs exemption, C/O serves as a core pillar of credibility, traceability, and compliance in modern trade. 56 per cent of BCI respondents reported submitting C/O documents on a monthly basis, especially among larger enterprises.

While the majority of businesses received their C/O within the standard three to five working days, 12 per cent experienced delays of over a week, potentially disrupting order fulfilment and increasing costs. On the other hand, a standout 5 per cent of businesses received C/O within 24 hours – a benchmark that reflects the growing efficiency of certain customs procedures.

Since May 5, 2025, the Ministry of Industry and Trade (MoIT) has taken over the C/O issuance process with plans to roll out a fully digital system nationwide. This move is widely welcomed by the business community. The digital transition is expected to reduce paperwork, improve turnaround times, and integrate more seamlessly with digital customs systems and electronic signatures.

“As geopolitical shifts continue to redraw global supply chains, having a clear, verifiable origin story for products becomes an even more competitive advantage than ever,” said Chairman Jaspaert.

“This push toward digitalisation is not just about reducing paperwork – it is about positioning Việt Nam as a trusted, future-ready trade partner. If Việt Nam can secure its entire supply chain and increase the share of truly ‘Made in Vietnam’ goods, it will gain a powerful edge in the global trade game. The C/O is more than a passport to tariff advantages – it is a mark of credibility and trust in end markets. With digitalisation, we can accelerate trade flows, reduce friction, and build a more transparent, resilient system that benefits all.”

The right balance

These trade facilitation efforts provide a necessary foundation for investor confidence. Evidently, long-term confidence is strengthening. A solid 78 per cent of respondents (up 7 percentage points from Q1) expect improved business conditions over the next five years. This growing optimism signals continued belief in Việt Nam’s structural growth story, even as the near-term picture remains clouded.

As reforms unfold, European businesses remain hopeful, but also pragmatic. The latest BCI data reflects a softened optimism – best described as a strategic pause amid a shifting economic landscape.

Thue Quist Thomasen, CEO of Decision Lab, the survey partner for BCI said: “The share of companies confident in economic stabilisation for Q3 2025 has dipped slightly to 50 per cent (down 8 percentage points from the previous quarter).

"However, this shift does not signal growing pessimism. Rather, it suggests that businesses expect limited near-term changes given the complexity of a volatile international environment. Most are not forecasting deterioration (11 per cent reporting gloomy outlook, only up 1 percentage point since last quarter) – just a period of holding steady.”

This wait-and-see stance is echoed in the sentiment breakdown: 39 per cent of respondents hold a neutral short-term outlook, while 43 per cent continue to rate their business prospects as 'Good' or 'Excellent'.

Yet through it all, resilience remains the dominant theme. Việt Nam's steady growth, dynamic workforce and expanding trade network continue to inspire confidence.

This future-facing optimism is grounded in clear business priorities. As outlined in EuroCham’s Whitebook 2025, European enterprises see several 'must-win battles' essential for improving Việt Nam’s FDI appeal: core infrastructure development, legal clarity, consistent enforcement, streamlined administrative procedures, and easier visa and work permit regulations. And yet, these very issues remain the most persistent bottlenecks in the business environment. — VNS