Earlier this year, Schneider Electric partnered with Petrosetco Distribution Company (PSD) to expand the distribution of uninterruptible power supply products and services in Vietnam.

The French group cited data showing that Vietnam's uninterruptible power supply (UPS) market reached a size of over 203 million USD last year and could grow to nearly 291 million USD by 2034, driven by the data center boom and the "green, smart transformation" trend.

"Vietnam is undergoing a strong digital transformation, leading to a rapid increase in demand for stable energy sources and smart technology infrastructure", said Dang Nguyen Ngu, General Director of Schneider Electric Vietnam and Cambodia.

Workers at the DURAflex Quang Tri factory. Photo: Saint-Gobain Vietnam

Also in the first half of the year, Saint-Gobain completed the conversion of a factory in Quang Tri to zero carbon (Scope 1 and 2) after upgrading its operating system. The French building materials group aims to further green 10 other factories amidst increasing demand for sustainable materials in Vietnam.

Not only Schneider and Saint-Gobain see prospects for expanding investment in Vietnam. On 15/7, the European Chamber of Commerce in Vietnam (EuroCham) announced its Business Confidence Index (BCI) for Q2 reached 79,7 points, approaching a 7-year peak achieved at the end of 2025.

EuroCham President Bruno Jaspaert stated that the business community entered 2026 with many geopolitical uncertainties. But despite global economic instability, member businesses achieved better-than-expected results.

Among businesses showing improvement, 36% reported increased revenue and profits exceeding expectations. About 32% of units noted a more positive outlook due to increased orders and new contracts, and 24% said domestic market purchasing power recovered significantly.

"This quarter's results demonstrate the resilience and endurance of both Vietnam's economy and the European business community operating here", Bruno said. According to EuroCham's survey, 63% rated business conditions positively in Q2, and 69% expect further improvement in Q3.

Business Confidence Index (BCI) of the European business community across quarters. Source: EuroCham

Previously, a study by UOB Bank (Singapore) also showed that 85% of Vietnamese businesses reported positive business sentiment, a sharp increase from 48% last year. Over 90% of businesses expect improved performance this year.

"Vietnamese businesses are demonstrating impressive adaptability and resilience in an increasingly volatile global environment", remarked Pham Nhu Anh, Director of Wholesale Banking (UOB Bank Vietnam).

What drives improved business confidence? According to the latest survey of manufacturing and processing businesses by the General Statistics Office (Ministry of Finance), about 83,4% of units forecast good and stable Q3 operations compared to Q2. This figure is higher than the results of the previous quarter's survey.

According to the agency, the business community's optimism stems from three main drivers: investment capital supporting production expansion, recovering export markets, and the spillover effect from public investment. Additionally, orders, output, capacity, and inventory all improved.

In the first half of this year, foreign direct investment (FDI) into Vietnam reached 34,65 billion USD, a sharp increase of 61% compared to the same period in 2025. Of this, disbursed capital reached over 13 billion USD, an increase of 11,2%, marking the highest first-half figure in the past 5 years.

However, the business environment still faces many challenges. 53% of European businesses continue to experience delays in administrative procedures, inconsistent policy implementation, and tax management issues.

Beyond personnel shortages, businesses also encounter difficulties with certification, testing, and product standards. About 27% of units stated that complex regulatory systems are reducing competitiveness and hindering market access.

According to EuroCham President Bruno Jaspaert, Vietnam issued over 80 laws and amending documents in the first half of the year, signaling ambitious reforms. However, keeping pace with this "wave of legal reforms" also presents a challenge for foreign businesses.

To transform confidence into future large-scale projects, he believes Vietnam needs to continue accelerating reforms and resolving institutional and procedural bottlenecks. "Clear regulations, efficient administrative procedures, and consistent enforcement are factors that help investors confidently commit long-term capital", he advised.

The General Statistics Office also noted that business production still faces many risks. Its survey showed that 94,6% of businesses are pressured by increasing production costs; 47,4% assessed domestic demand as low, and 28,4% faced difficulties with interest rates.

The country saw 169.800 new and re-operating businesses in the past 6 months, an increase of 11,2% compared to the same period last year (equivalent to 28.300 units per month). However, on average, nearly 25.200 businesses still withdraw from the market each month.

At a dialogue conference in TP HCM on 10/7, many businesses reported difficulty accessing capital despite having export contracts and viable business plans. Units recommended that management agencies promptly implement policies to support credit capital and trade promotion.

Businesses are also proactively adapting. UOB's report indicated that about 40% of businesses plan to expand their supplier networks to strengthen supply chains, and 80% are adopting artificial intelligence (AI). According to Pham Nhu Anh, this is a "clear transformation".

"Businesses are boosting investment in digital capabilities, strengthening supply chains, and expanding into the ASEAN region to capture long-term growth opportunities", she said.

Meanwhile, the General Statistics Office recommended that stabilizing raw material and energy prices, continuing to reduce interest rates and land rent, and reforming administrative procedures are top priorities for further improving the business environment.

Vien Thong