Hanoi (VNA) – Vietnam has emerged as the most attractive destination in ASEAN for European businesses planning expansion, with nearly two thirds of surveyed firms intending to expand operations in the country over the next five years, according to the EU-ASEAN Business Council’s 12th Business Sentiment Survey released recently.

Some 64% of respondents said they planned to expand in Vietnam, ahead of Indonesia at 57%, Malaysia and Thailand at 49% each, Singapore at 44% and the Philippines at 43%.

The survey, which gathered responses from around 150 European business leaders, also pointed to stronger expectations for trade and investment across ASEAN.

Some 78%, expect their companies’ trade and investment in ASEAN to increase over the next five years, up from 71% in 2025.

Meanwhile, 78% of respondents said they planned to expand operations in at least one ASEAN market, with Vietnam and Indonesia continuing to be the top two destinations.

For the fourth consecutive year, ASEAN was seen as offering the strongest economic opportunities, cited by 61% of respondents, up from 56% last year, according to the survey.

European businesses have shown a firm commitment to ASEAN. Investment appetite has increased, with most companies planning to expand within the region, said Executive Director of the EU-ASEAN Business Council Chris Humphrey.

Despite the positive outlook, ASEAN’s trade and investment environment continues to face challenges. Some 81% of respondents said uncertainty surrounding US tariff policies had made them at least somewhat less confident about operating in ASEAN./.