European businesses are confident in the Vietnamese market
On June 30, the European Chamber of Commerce in Vietnam (EuroCham) officially released the Business Confidence Index (BCI) report for the second quarter of 2025, reflecting a rapidly changing economic picture, in which European businesses in Vietnam are still adapting.
According to EuroCham, the BCI in the second quarter recorded 61.1% - a slight decrease compared to the previous quarter amid increasing global uncertainty. However, the general trend is still controlled optimism. Despite international uncertainties and some temporary internal obstacles in the reform process, the European business community still maintains strong confidence in the long-term growth potential of the Vietnamese economy.
Mr. Bruno Jaspaert - Chairman of EuroCham said that European businesses in Vietnam still maintain confidence in the investment environment here. Nearly three-quarters of business leaders (about 72%) said they were willing to introduce Vietnam as an investment destination - a consistent trend through recent BCI sessions. This trend demonstrates a deep belief in the long-term potential of the Vietnamese economy.
98.2% of European businesses know and take advantage of EVFTA
Notably, EuroCham's BCI report in Q2/2025 clearly pointed out the impacts of the EVFTA in the 5th consecutive year of its entry into force.
According to the agency’s survey, up to two-thirds of BCI participants in Q2/2025 said they were actively involved in EU-Vietnam trade or supply chain support sectors such as logistics, warehousing and distribution, indicating a deepening trade relationship between the two sides.
The survey results also reflect the growing recognition from businesses of the practical benefits that the EVFTA brings. “It is encouraging that up to 98.2% of surveyed businesses said they were aware of the EVFTA,” said Chairman Jaspaert, adding, “Almost half of them reported that the agreement brought moderate to significant benefits to their business, a clear signal that we are on the right track.”
In addition, the survey data also showed that the level of benefits from the EVFTA varies depending on the size of the business. Large enterprises tend to report more prominent benefits, especially in exports from the EU to Vietnam. Meanwhile, small and medium-sized enterprises play a more active role in promoting two-way trade, especially in exports from Vietnam to the EU.
One of the most notable changes over the past year is that the proportion of enterprises identifying tariff preferences as a prominent benefit of the EVFTA has skyrocketed - from 29% in Q2/2024 to 61% in Q2/2025. This increase reflects the effectiveness of the phased tariff reduction roadmap, as well as the increasing level of utilization of the preferential provisions of the agreement.
Total trade turnover between the EU and Vietnam has increased by 40% since 2020, according to data from the Ministry of Industry and Trade. While only 21% of businesses surveyed said they could quantify the direct benefits of the EVFTA, the average increase in net profit recorded by this group was 8.7% - with some businesses reporting an impressive 25%.
However, as with the overall business landscape in Vietnam, fully exploiting the potential of the EVFTA will depend on a number of coordinated efforts. One of the most prominent barriers currently is the issue of customs valuation, identified by 37% of businesses participating in the survey as a major obstacle. Many business leaders reported that differences in product classification between Vietnamese and EU customs authorities often lead to disputes over tax rates and complicated, time-consuming processing procedures.
In addition, other challenges such as unclear legal systems and gaps in communication with local authorities continue to hinder the effective use of the incentives in the agreement – reflecting in part the shortcomings that have been raised in the general business sentiment of the business community.
To overcome these barriers, many European businesses have proposed specific solutions such as: simplifying import procedures, increasing the application of digital technology and electronic declaration platforms, as well as allowing self-certification of origin mechanisms. In addition, 28% of businesses want more consistent customs guidance and enforcement, while 22% suggest the need to accelerate the removal of technical barriers to trade.
Coming to the milestone of the EVFTA's fifth anniversary is an important step forward. Data from the BCI shows that a more cohesive institutional ecosystem, along with capacity building at both the government and business community levels, will be key for the EVFTA to fully realize its potential in the coming time.

Source:Vitic/ congthuong.vn