Recorded at 64.6 for the first quarter, the index suggests relative confidence – but with a clear undercurrent of uncertainty.

Viet Nam's ongoing economic reforms and structural improvements helped bolster positive sentiment at the time of the survey. European firms recognized these efforts and, broadly speaking, responded with a neutral-to-positive stance on the business climate.

Business sentiment among European companies operating in Viet Nam in the first quarter showed modest signs of improvement compared to previous quarters: 42 percent of respondents reported a neutral stance on the business environment – suggesting a preference for vigilance amid ongoing changes.

At the time of the survey from March 10-27, Viet Nam's solid economic growth and positive GDP forecasts (cited by 37 percent) provided a degree of reassurance. Respondents also highlighted trade and investment opportunities (24 percent) and a rebound in consumer spending and tourism (18 percent) as favorable signs.

While 68 percent of European business leaders said they would recommend Viet Nam as an investment destination–highlighting their long-term commitment–this figure reflects a 7-point drop from the fourth quarter of last year, when 75 percent expressed similar confidence. This suggests a more reserved view of Viet Nam's investment climate as firms adopt a more measured approach.

Respondents identified key areas where further progress would strengthen Viet Nam's appeal to foreign investors, with infrastructure development (37 percent) as the top priority for enhancing Viet Nam's investment attractiveness.

Other points noted were streamlining administrative processes (29 percent) to reduce bureaucratic inefficiencies; easing visa and work permit procedures for foreign experts (24 percent); as well as greater clarity in laws and stronger law enforcement (21 percent). These priorities indicate that while commitment remains, European firms are looking for tangible improvements to match their long-term confidence.

Government Restructuring: Reserved Optimism Looking Toward 2026

Viet Nam's ongoing government restructuring process was met with neutral to cautiously optimistic responses. While most businesses did not expect immediate improvements, many expressed hopes for progress by 2026.

Key anticipated improvements include a shift to digital submissions and approvals (45 percent); faster processing times for administrative procedures (26 percent); and decentralization of decision–making at local levels (25 percent).

Regarding the provincial mergers, over 40 percent of respondents believed these changes could eventually improve administrative efficiency and reduce regulatory complexity. Interestingly, 44 percent suggested their operations would function best if Viet Nam reduced its number of provinces to below 30–pointing to a preference for leaner governance.

As Viet Nam navigates structural reforms and external challenges, European businesses are demonstrating a continued – but guarded – confidence in the country's trajectory.

Bruno Jaspaert, Chairman of EuroCham, said, the resilience of Viet Nam's economy is not just built on growth figures but also on its ability to adapt–both structurally and diplomatically–amid shifting global currents. While recent developments, including trade policy shifts, introduce new complexities, the broader trajectory remains one of engagement and opportunity.