According to the Business Confidence Index (BCI) report for Q4/2025, recently released by the European Chamber of Commerce in Vietnam (EuroCham), Vietnam's business environment saw significant improvements by the end of 2025.
The BCI for Q4, that surged by 13.5 points to reach 80.0, signals a return to strong confidence after nearly a decade marked by disruption, volatility, and prolonged neutrality – even as global trade tensions and geopolitical uncertainty continue to weigh on the international environment.
The percentage of businesses concerned about administrative burdens in Q4 decreased by 12 percentage points compared to Q3. EuroCham assesses that Vietnam's recent reforms have begun to make an impact, although the spread is not yet uniform.
However, the report highlighted that complex administrative procedures and inconsistent regulatory frameworks remain the most frequently mentioned challenges by European businesses operating in Vietnam.
'According to Eurocham's survey data, 53% of businesses are still concerned about administrative burdens. Other obstacles include unclear or inconsistently applied regulations (52%), customs procedure issues, trade barriers, and restrictions on visas and work permits, each mentioned by about one-third of businesses. These challenges lead to delays or increased uncertainty in operations (59%), resulting in higher administrative and compliance costs (31%), as well as resource dispersion and reduced productivity (20%).
However, Resolution No. 68-NQ/TW, issued in May 2025, aims to simplify procedures, promote digitalization, and shift from pre-checks to post-checks, which has been strongly supported by the business community as a positive signal of direction, though practical effectiveness is still forming, the report noted.
Resolution 68 aims to enhance the role of the private sector by simplifying administrative procedures, promoting digitalization, shifting from pre-checks to post-checks, and ensuring fair competition, it remarked, adding that EU businesses strongly support this approach, emphasizing the need for clear, consistent, and predictable implementation.
As of Q4/2025, 25% of businesses have noted certain improvements in the operating environment, with 8% rating them as significant, while 61% have not yet felt a clear impact, reflecting the early stage of implementation, 5% believe these changes have introduced new challenges.
Additionally, the implementation of VNeID has shown positive results, with 76% of businesses completing registration by the end of 2025, indicating high compliance levels after the mandatory regulation took effect in July 2025. However, 24% of businesses still face difficulties, indicating a need for more flexible approaches and focused support, especially for foreign-invested enterprises, before full-scale application.
Moving into 2026, the optimism of European businesses is gradually being reinforced by actual indicators and the reform roadmap being implemented. Expanding operations and diversifying investment portfolios are top priorities, chosen by 50% of businesses. Following this, 45% of businesses focus on recruiting and retaining talent to address the pressure on high-quality labor resources. Notably, 41% of businesses prioritize enhancing technology application, automation, and artificial intelligence (AI) to boost long-term productivity.
Infrastructure development and public investment are expected to be the main growth drivers in the next 12-18 months, particularly in logistics, construction, and trade sectors. Improving connectivity, transport capacity, and land access is anticipated to open up long-term growth potential. Despite ongoing global uncertainties, the business community believes that Vietnam is becoming a central link in long-term growth strategies.
“Our latest BCI confirms what many of us have felt intuitively,” said EuroCham Chairman Bruno Jaspaert. “After years of hovering around the mid-line, 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 quickly transforming itself into a powerful growth engine, on track to rank among the top three economies in ASEAN.”
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