Vietnam tops ASEAN as most attractive to European businesses

Vietnam tops ASEAN as most attractive to European businesses

Vietnam has emerged as the most attractive ASEAN market for European businesses planning to expand their operations, according to the annual survey by the EU-ASEAN Business Council released on September 9.

Photo: baodautu.vn

The survey of around 150 European business leaders found that 64 per cent of respondents plan to expand their operations in Vietnam, the highest share among the six major ASEAN markets covered.

Indonesia ranked second at 57 per cent, followed by Malaysia and Thailand at 49 per cent each, Singapore at 44 per cent, and the Philippines at 43 per cent.

The results come as European businesses continue to hold a positive outlook for ASEAN’s economic prospects. Some 78 per cent of respondents expect trade and investment in the region to increase over the next five years, up from 71 per cent in 2025.

Meanwhile, 78 per cent said they plan to expand in at least one ASEAN market, with Vietnam and Indonesia remaining the two leading destinations.

For the fourth consecutive year, ASEAN was also identified as offering the greatest economic opportunities compared with other major emerging economies. The region was selected by 61 per cent of respondents, up from 56 per cent in 2025.

Chris Humphrey, CEO of the EU-ASEAN Business Council, said that despite continued global challenges, European businesses remained strongly committed to the region.

“Growing investment appetite, with a majority of businesses planning to expand across the region, demonstrates that ASEAN continues to play an important role in business growth as companies adjust their investment and operational strategies,” Humphrey said.

Despite the positive outlook, the region’s trade and investment environment continues to face challenges. Some 81 per cent of respondents said uncertainty surrounding US tariff policies remains a major concern, weighing on business confidence in ASEAN.

However, the survey demonstrated that companies are responding to uncertainty by diversifying their operations rather than withdrawing from the region.

Humphrey said ASEAN’s market size, strategic location, and connectivity provide a strong foundation for the region to become an increasingly important supply chain hub. He added that reducing regulatory and cross-border barriers would enable businesses to make better use of ASEAN’s combined market.

European businesses are also calling for the EU to strengthen its trade strategy towards ASEAN. Nearly nine in 10 respondents, or 88 per cent, believe European companies face disadvantages compared with competitors from countries that have regional trade agreements with ASEAN.

Only 18 per cent said the EU’s current level of engagement with ASEAN is sufficient to support European businesses, while 43 per cent called for greater involvement from EU institutions.

VIR