European Businesses' Confidence Index in Vietnam Rises Sharply

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On July 15th, the European Chamber of Commerce in Vietnam (EuroCham) announced that the Business Confidence Index (BCI) had risen sharply to 79.7 points in the second quarter of 2026.

This quarter's survey results show a strong recovery in the confidence of the European business community, while also affirming Vietnam's attractiveness and resilience in the face of many challenges in the international business arena.

Business is booming

Textile and garment production for export (Photo: Quoc Khanh/VNA).)

Specifically, compared to 72.7 points in Q1 2026, the BCI in Q2 2026 increased by 7 points, reflecting a strong recovery in investment confidence. European businesses continue to view Vietnam as one of the most attractive growth destinations in Southeast Asia, reinforcing their belief in the market's long-term development prospects.

The BCI survey results also showed that 63% of European businesses reported positive business conditions in the second quarter of 2026, while 69% expected the situation to continue to improve in the next quarter.

Compared to the survey results from three months ago, this rate has increased by 11% points, reflecting a clear upward trend in business performance, new orders, and sustained purchasing power.

EuroCham President Bruno Jaspaert commented that the Q2 2026 BCI results reflect the incredible resilience and almost unwavering fortitude of both the Vietnamese economy and the European business community.

“We entered the year with many geopolitical uncertainties but despite the instability plaguing the global economy, EuroCham member businesses have exceeded their own expectations in Vietnam,” he said.

Xavier Depouilly, CEO of DXL Research and Consulting, analyzed that the recovery of European business confidence across all sectors indicates that the slowdown in Q1 2026 was widespread but only temporary.

Although the pace of recovery for European businesses varies across sectors, the overall trend is very positive.

Typically, the agriculture and food sector saw a modest increase of only 5.5 points, but the tourism and hospitality sector surged by 8.7 points, reaching 90.4 points, significantly higher than the average BCI.

European businesses across all sectors have exceeded expectations, thanks to sustained strong domestic and international purchasing power, continued expansion of public and private investment, and remarkable adaptability to an increasingly complex business environment.

Processing of barramundi fish products for export to the Japanese market at Tu Hai Co., Ltd., Phuoc Thang ward (Photo: Hoang Nhi/VNA).

Xavier Depouilly further explained that by adding industry- and company-size analysis, the BCI provides a more detailed view of business confidence, helping both investors and policymakers identify areas that are driving growth.

Simultaneously, the parties also identified existing challenges and priorities that need to be focused on in their operations.

The BCI results for Q2 2026 also clearly reflect the macroeconomic picture, as Vietnam continues to affirm its position as one of the most dynamic growing economies in Asia, with GDP growth reaching 8.18% in the first six months of 2026.

Combining this impressive growth rate with Vietnam's rise to 27th place in the IMD World Competitiveness Index and its upcoming upgrade to Tier 2 Emerging Market status by FTSE Russell in September 2026, the overall picture has become very clear.

From aspiration to competitiveness

Processing agricultural products for export (Photo: VNA).

Along with the positive BCI results for Q2/2026, what truly sets Vietnam apart in a fiercely competitive region is not only its aspiration for growth, but also the government's commitment to concretizing that goal into a series of resolutions and its persistent implementation of structural reforms.

These factors are driving significant changes in how European businesses position Vietnam within their regional and global strategies.

In fact, since the beginning of 2026, the Vietnamese government has continuously promoted institutional reforms, streamlined the administrative apparatus, and perfected policies to attract high-quality FDI flows.

A notable development is the issuance of Resolution No. 10-NQ/TW dated June 8, 2026, by the Politburo on the development of the foreign-invested economy, with the orientation of shifting the focus of attracting foreign investment from advantages in labor costs and scale to diversifying high-tech, innovative, and sustainable development projects.

Vietnam is no longer seen merely as a manufacturing and assembly hub. The country is asserting its role as a platform for supply chains, service providers, and expansion operations across Southeast Asia.

More than half of the European businesses surveyed consider Vietnam a strategic market and a core operating base, while 18% view it as an important growth driver for their business.

With Vietnam aiming for double-digit growth, the European business community sees a great opportunity to translate the current positive sentiment into high-quality and sustainable investment flows by continuing to promote administrative reforms and enhance the transparency of the legal system, ensuring consistent policy implementation at all levels.

Advances in these areas will enable businesses to focus more resources on innovation, expanding production, and developing human resources, thereby further enhancing Vietnam's competitiveness in attracting international investment.

Overall, the European business community considers Vietnam's economic foundation to remain very attractive, but administrative reforms currently present the greatest opportunity to further enhance competitiveness and strengthen investor confidence.

Fresh Vietnamese fruit products are introduced to German customers (Photo: Thu Hang/VNA).

Therefore, in addition to the strong recovery in business confidence, the survey results also clearly indicate that Vietnam needs to continue to accelerate reforms and remove institutional and administrative bottlenecks.

EuroCham President Bruno Jaspaert also noted that European businesses grow in scale and complexity. Hence, a correspondingly robust legal environment is crucial. Clear regulations, efficient administrative procedures, and consistent enforcement are key factors in reassuring investors and encouraging long-term capital commitments.

According to BCI statistics for Q2 2026, Vietnam enacted more than 80 laws and amendments in the first half of 2026 alone, marking an ambitious reform period.

For its part, EuroCham will continue to act as a trusted bridge between the business community and policymakers, contributing to transforming those reforms into confidence so that businesses will continue to stay and invest long-term in Vietnam.

It also continues to play an active role as a partner in the process of developing and refining policies. Through this constructive dialogue mechanism, EuroCham will continue to accompany Vietnam on its journey to becoming a leading destination in Asia for high-quality, sustainable, and forward-looking investment flows.

The ports in Ho Chi Minh City are always bustling with ships loading and unloading cargo (Photo: Tien Luc/VNA).

Conducted in collaboration with DXL Research and Consulting Company, the BCI Q2/2026 provides one of EuroCham's most comprehensive assessments to date of how the European business community is responding to an increasingly complex business environment both domestically and internationally.

Over the past 15 years, the BCI has evolved from a quarterly survey measuring European business sentiment into an economic indicator trusted and used by regulators as a benchmark for market practices, thereby continuously improving the investment environment.

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