Investment confidence holds firm
The BCI climbed to 66.5 points in Q3, surpassing pre-U.S. tariff levels and reaching its highest in three years.
The report, conducted by Decision Lab, goes beyond macroeconomic sentiment to capture structural shifts quietly reshaping Vietnam’s business environment: forward-looking reforms in visa and work permit policies, growing momentum for green investment, and the ongoing digitalization of administrative procedures.
Together, these changes reflect how European investors perceive Vietnam’s future: full of promise.
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Producing apparel for export to Europe |
EuroCham Chairman Bruno Jaspaert noted a sharp improvement in business sentiment: 80% of survey respondents are optimistic about their prospects over the next five years, while 76% would recommend Vietnam as an investment destination. Despite external headwinds, Vietnam’s structural story still holds strong.
The recent upgrade of Vietnam’s stock market status classification by FTSE Russell, from “frontier” to “secondary emerging,” underwrites the findings of BCI survey. It signals growing confidence from international investors and recognizes Vietnam's rising importance as an investment destination for future business.
This renewed confidence aligns with Vietnam’s broader economic ambitions. Nearly half of respondents (42%) believed that Vietnam will reach its ambitious GDP growth target of 8.3% - 8.5% for 2025, while 23% remained neutral and 35% expressed some reservations.
Decision Lab CEO Thue Quist Thomsen noted: “While neutrality still dominates in the short-term outlook, sentiment becomes distinctly more positive when firms discuss the future. Notably, 68% expect economic stabilization and improvement in the next quarter, up 18 percentage points since Q2 2025, a clear indication that businesses are expecting to close the year on a stronger footing.”
Notable progress in administrative reform
Administrative inefficiency remains one of the major challenges facing European businesses in Vietnam, with 65% citing procedural burdens as an obstacle. Tax-related procedures, particularly VAT refunds, continue to cause frustration, while inconsistent interpretations of work-permit rules between provinces create operational uncertainty.
However, a major step forward was made in August 2025 when the Government introduced three new decrees designed to modernize visa and work-permit regulations and make the process more predictable.
Decree 219 empowers local authorities to issue work permits, enables online applications, reduces experience requirements for foreign experts in prioritized and emerging fields, expands categories eligible for exemptions, and simplifies paperwork. Decree 221 introduces a limited-term visa exemption for select groups of foreigners contributing to Vietnam’s socio-economic development, reflecting a more flexible approach to attracting international talent. Meanwhile, Decree 229 expands Vietnam’s visa-exemption policy to include 18 E.U. member states, further strengthening the link between European and Vietnamese mobility.
Almost half (48%) of the firms surveyed reported that these policy changes have already made a positive difference in their operations, while 42% said the impacts are yet to materialize, often due to transitional administrative issues.
Chairman Jaspaert stressed: “As Vietnam aspires to become a high-income, developed nation within the next two decades, talent mobility and skills transfer must be placed at the heart of this journey. These reforms are critical to ensuring that international expertise can flow freely to where it is most needed, unlocking innovation and strengthening Vietnam’s private-sector capacity.”
The Q3 2025 BCI ultimately reaffirms Vietnam’s position as one of the most promising destinations for European investment in Asia. Yet, as the world grows more volatile and unpredictable, optimism must be anchored in continued reform and resilience. Respondents consistently stressed that Vietnam’s long-term competitiveness depends on regulatory predictability, consistency across provinces, and efficient administrative procedures.
E.U. Ambassador to Vietnam Julien Guerrier added: “Vietnam’s growth trajectory is impressive, yet there is scope to unlock further the huge potential of the E.U. - Vietnam partnership with predictable and transparent rules in line with international standards, and the involvement of the business community in the preparation of new regulations. EuroCham’s role in conveying the insights of European businesses to contribute to accelerate Vietnam’s green and digital transition, is indispensable to our shared success.”
Source: VNA