EUROPEAN BUSINESS CONFIDENCE IN VIETNAM REBOUNDS IN Q2

European business confidence in Vietnam rebounded strongly in the second quarter of 2026, reflecting investors' continued confidence in the country's long-term growth prospects despite ongoing uncertainty in the global trading environment.

European businesses remain optimistic about Vietnam's long-term market prospects. Photo: Thanh Hiep / Tuoi Tre

European business confidence in Vietnam surged to 79.7 points in Q2 2026, according to the latest Business Confidence Index survey released by the European Chamber of Commerce in Vietnam (EuroCham) on Wednesday.

With a sharp seven-point increase from 72.7 points in the first quarter, the index now sits just 0.3 points below the seven-year high of 80, recorded at the end of 2025.

In the first quarter of this year, the index was weighed down by geopolitical uncertainties, including tensions in the Middle East.

Released to mark the 15th anniversary of EuroCham's Business Confidence Index, the Q2 2026 report reveals a renewed surge in European business confidence while reaffirming Vietnam's appeal to international investors.

The survey shows that 63 percent of European businesses reported positive business conditions during Q2, while optimism continues to strengthen, with 69 percent expecting favorable conditions in the coming quarter.

This wave of optimism represents an 11-percentage-point jump compared to the expectations expressed just three months ago, driven by surging commercial performance, a healthy influx of new orders, and resilient domestic demand.

The data highlights clear commercial drivers behind this optimism.

Among the firms reporting improved performance this quarter, 36 percent pointed to rising revenues, stronger sales velocities, and enhanced operational profitability that exceeded expectations.

Meanwhile, 32 percent credited their brighter outlook to more orders and new contracts, while 24 percent emphasized a noticeable strengthening in domestic consumer demand.

This balanced growth across manufacturing, tourism, real estate, and export-oriented sectors shows that Vietnam’s economic engine is accelerating on multiple cylinders, according to EuroCham.

Despite the improving outlook, EuroCham said Vietnam will need to continue institutional and administrative reforms to translate growing confidence into large-scale investment projects.

The survey found that 53 percent of businesses consistently ranked regulatory delays, policy inconsistencies, and opaque tax administration not merely as minor daily annoyances, but as the primary anchors dragging down their long-term expansion plans.

Source: Tuổi Trẻ News