European bizs optimistic about Vietnam's long-term growth: Eurocham
European businesses in Vietnam are showing remarkable resilience as international trade tensions mount and supply chains remain under pressure.
For the second quarter (Q2) this year, BCI slightly dropped to 61.1, reflecting heightened global uncertainty.
European businesses continue to have strong confidence in Vietnam's long-term economic prospects despite global market turbulence and some delays in domestic reforms, and report limited direct financial impact, a report by EuroCham said. Only 11 per cent of respondents foresee a negative outlook in the coming months. The overall sentiment, however, remains one of cautious optimism.
The overall sentiment, however, remains one of cautious optimism, with the country still viewed as a resilient and promising investment destination.
Seventy-two per cent of surveyed enterprises said they would recommend Vietnam as an investment destination with long-term potential, a domestic news agency reported.
Among the key factors influencing sentiment is the unresolved impact of US tariffs. Following the third round of Vietnam-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.
In fact, only 11 per cent of respondents foresee a negative outlook in the coming months, while 39 per cent remain neutral and 43 per cent still rate their business prospects as 'good' or 'excellent'. This suggests that most companies are adopting a prudent 'wait-and-see' approach rather than anticipating a downturn.
Despite global headwinds, European companies in Vietnam report limited direct financial impact. Just 15 per cent of businesses said they had experienced net negative outcomes like penalties, cancelled orders, or price renegotiations. Meanwhile, 70 per cent reported no significant disruptions, and 5 per cent even noted net gains.
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