Ho Chi Minh City (VNA) – Business sentiment in Vietnam is rebounding strongly despite a challenging operating environment marked by rising costs and growing global uncertainties, including prolonged geopolitical tensions and trade-related pressures, according to the recently released Business Outlook Study 2026 by the United Overseas Bank (UOB).
The study found that 85% of Vietnamese enterprises reported positive business sentiment, a sharp increase from 48% in 2025, when business confidence was weighed down by uncertainties surrounding US tariff policies and related trade developments.
Energy management becomes strategic priority
The outlook remains highly optimistic, with nine out of 10 businesses expecting improved performance in 2026 and forecasting stronger revenue growth in 2027–2028.
However, macroeconomic challenges continue to exert pressure on business operations. Nearly half of the surveyed firms reported higher costs linked to tariff measures and geopolitical tensions, underscoring the urgent need for solutions that enhance operational efficiency, strengthen cost management, and support sustainable business transformation in an increasingly complex operating environment.
In addition to persistent concerns over trade and geopolitical uncertainties, energy management is emerging as a top strategic priority for Vietnamese businesses. Even before the recent escalation of tensions in the Middle East, the study found that 96% of enterprises in Vietnam considered efficient energy management and use important, significantly higher than the regional average of 87%.
More than half of the surveyed firms (55%) identified ensuring a stable and sustainable energy supply for their operations as a key priority, while 53% focused on optimising energy use and 47% sought to reduce energy consumption and improve energy efficiency.
To achieve these goals, companies are increasing investments in energy-saving equipment (43%) and solar power solutions (42%), aiming to strike a balance between cost management and long-term operational sustainability.
At the same time, Vietnamese firms are accelerating their digital transformation efforts, with artificial intelligence (AI) gradually emerging as a key driver of growth. Although adoption remains at an early stage, eight in ten enterprises have begun implementing AI solutions. However, only around 25% have reached an advanced level of AI utilisation.
AI is already delivering tangible benefits for businesses, with 49% of the surveyed firms reporting improved productivity, 47% achieving cost savings, and 46% posting revenue growth. Reflecting growing confidence in the technology’s potential, two-thirds of businesses plan to increase their AI investment budgets by more than 25% in 2026.
However, AI adoption continues to face several challenges. The main obstacles cited by businesses include high costs and limited financial resources (49%), constraints related to AI solutions and partner ecosystems (48%), as well as limitations in data availability and system readiness (47%).
Strong focus on supply chain diversification
Supply chain management continues to be a top priority, with 97% of Vietnamese businesses identifying it as critical. While disruptions have eased compared with previous years, challenges persist, particularly from geopolitical risks and procurement complexity. Regulatory ambiguity also remains a concern, affecting 88% of businesses.
To strengthen resilience, Vietnamese companies are actively diversifying their supply chains. Four in five businesses plan to expand their supplier networks in 2026, with more than half looking to increase suppliers within ASEAN and 23% focusing on domestic sourcing.
Nearshoring strategies are also gaining momentum. About one in three intend to establish or expand operations in Vietnam, while many are also considering broader ASEAN expansion (43%), reinforcing the region’s role as a key manufacturing and supply chain hub.
This shift is strongly driving a wave of international expansion. Seven in ten Vietnamese businesses expanded their operations overseas in 2025, while nine in ten plan to further expand internationally over the next three years. Likewise, 80% of Vietnamese enterprises intend to invest abroad within the next two years, with the average planned investment exceeding 28 million USD.
ASEAN remains the preferred destination for expansion, with 65% of Vietnamese firms identifying the region as their top choice. Among ASEAN markets, Thailand, Singapore and Indonesia are the most attractive destinations. However, companies continue to face a number of challenges, particularly in meeting legal, regulatory, compliance and tax requirements (36%), finding suitable local partners (36%), and gaining access to partnership opportunities with large corporations or government-linked organisations.
Pham Nhu Anh, head of Wholesale Banking at UOB Vietnam, said that Vietnamese businesses are demonstrating remarkable resilience and adaptability in an increasingly volatile global environment./.
