Business confidence among Vietnamese companies is improving as they expand supply chains and overseas operations, with ASEAN emerging as a preferred destination for growth, according to UOB’s Business Outlook 2026 study.

The survey found that 85% of Vietnamese businesses reported positive business sentiment, up sharply from 48% in 2025. More than 90% expect business performance to improve in 2026, while revenues are forecast to continue rising through 2027–2028.

However, tariff fluctuations and geopolitical tensions remain major challenges. Nearly half of the surveyed businesses said these factors had increased their operating costs, prompting them to improve efficiency, control expenses and accelerate sustainable transformation.

To strengthen resilience, four in five businesses plan to expand their supplier networks this year. More than half intend to increase sourcing from ASEAN, while others will focus on domestic suppliers.

The nearshoring trend is also gaining momentum. About one-third of businesses plan to establish or expand production domestically, while 43% are considering expanding into other ASEAN markets, further strengthening the region’s role as a manufacturing and supply chain hub.

Meanwhile, international expansion is accelerating. Seven in 10 Vietnamese businesses expanded overseas in 2025, while nine in 10 plan to do so over the next three years. About 80% also plan to invest overseas within the next two years, with average investment exceeding $28 million.

The survey covered 226 large and medium-sized Vietnamese businesses as part of UOB’s study across seven markets, including Singapore, Indonesia, Malaysia, Thailand, Vietnam, mainland China and Hong Kong (China).