European Businesses Show Strong Interest in Vietnam, Leading ASEAN Investment

EuroCham's latest survey shows European business confidence in Vietnam has rebounded to its highest level in nearly seven years, driven by stronger demand despite global uncertainty. This positions Vietnam as a leading destination for European investment within ASEAN. Trade and investment between Vietnam and the broader EU market, particularly Belgium, are expected to continue growing strongly. Key areas for future cooperation include the green economy, energy transition, high technology, and digital transformation. The recent official visit to France by General Secretary of the Communist Party of Vietnam Central Committee and President To Lam is anticipated by the French business community to further consolidate bilateral ties and serve as a "catalyst" for accelerating joint projects. Discussions have also highlighted ample cooperation potential between Hung Yen province and Czech firms, as well as the Vietnamese business community in Europe, spanning direct investment, trade, supporting industries, education, and workforce training. Economically, from January to August, nearly 138,100 businesses were newly established, a 7.7% increase year-on-year. Conversely, over 40,800 businesses completed dissolution procedures, marking a substantial 125.5% jump. This indicates both economic dynamism and potential shifts in the business landscape. Vietnam is set to secure one of the largest exhibition spaces among ASEAN countries at the CAEXPO (China-ASEAN Expo), leasing approximately 3,000 square meters with 170 booths. Nearly 100 Vietnamese businesses have confirmed their participation, including major brands like Trung Nguyen Group, TH Group, Saigon Coffee, and Biti’s. In response to the new US tariff policy, Vietnamese exporters are reassessing their strategies. Many are shifting from volume-driven growth towards higher-value orders, tighter cost control, greater productivity, and a more balanced allocation of markets to reduce reliance on single destinations. Vietnam's international airports have also seen recognition. Noi Bai and Tan Son Nhat airports were ranked among the most improved in the 25–40 million passenger-per-year category by ACI, while Da Nang airport was recognized as a top improver in the 5–15 million passenger segment. With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is 26,892 VND/USD, and the floor rate is 24,330 VND/USD. This framework aims to ensure exchange rate stability while allowing for market flexibility. Source: VietnamPlus English