The UOB Business Outlook Study 2025 – Vietnam, published in early Q3, paints a vivid picture of how Vietnamese enterprises are navigating a time of turbulence. From shifting geopolitical dynamics to mounting global business pressures, Vietnamese businesses are not just swept up by change—they are proactively adjusting strategies to adapt, overcome, and grow.
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Business Sentiment Adjustment Following Tariff Shock
The UOB survey revealed a notable shift in business sentiment within a few short months. At the beginning of 2025, over 80% of Vietnamese businesses expressed optimism about growth. By April, this figure had dropped to just 48%—following the U.S. decision to impose anti-dumping duties of up to 46% on certain Vietnamese exports.
Nonetheless, the Vietnamese government remains committed to achieving its GDP growth target of 8% in 2025 and is stepping up trade negotiations and diplomatic efforts to mitigate external risks.
Three Strategic Directions of Vietnamese Enterprises
Instead of waiting passively, many Vietnamese companies are proactively realigning their strategies. Three strategic priorities have emerged:
- Revenue growth via new customer and market expansion—with a particular focus on ASEAN, Europe, and Northeast Asia.
- Accelerating digital transformation—over 90% of mid-sized and large enterprises have adopted digital technologies, with further expansion expected in 2025.
- Developing sustainable business models—nearly 75% of companies are implementing ESG practices, especially SMEs in Hanoi showing strong leadership.
Digital Transformation Accelerates, But Cybersecurity Concerns Grow
Digital transformation has become an imperative. Vietnamese companies are not only applying digital tools to accounting, HR, and sales but also embracing big data, automation, and even AI. However, this comes with increased challenges around cybersecurity and data governance—especially regarding data leaks and regulatory compliance.
New data laws effective from July 2025 are expected to boost digital trust and enhance standards for data protection.
ESG as a Competitive Edge for Vietnamese Businesses
Over 90% of surveyed businesses believe ESG is essential to long-term strategy. ESG isn’t just about emission reduction—it encompasses corporate governance, transparency, and social responsibility. Key drivers include investor access, brand credibility, and sustainable value creation.
The Vietnamese government has made strong policy commitments to energy transition, aiming to phase out coal by 2050, expand renewable energy, and establish a legal framework for a carbon credit market. However, implementation remains challenging due to infrastructure and cost barriers.
Globalizing Supply Chains and Export Markets
Amid rising trade risks with the U.S., Vietnamese enterprises are pivoting toward ASEAN and EU markets—leveraging favorable FTAs and more stable trade environments. They are also building more flexible supply chains, diversifying sourcing, and increasing domestic value-added capabilities.
This marks Vietnam’s transition from a “low-cost production hub” to a high-value strategic partner in regional supply chains.
Emerging Leadership: Women and the Next Generation
Women lead 47% of Vietnamese businesses—above the ASEAN average of 36%. These firms tend to focus more on customer experience and risk management.
Meanwhile, 73% of businesses are led by Next Gen leaders—bringing innovative thinking, digital fluency, and a strong ESG orientation, setting the stage for a new growth cycle in Vietnam.
At EPS Investing, we help businesses turn challenges into growth opportunities through pragmatic advisory solutions focused on: financial and operational restructuring, capital raising and M&A readiness, and digital & ESG transformation. With over 25 years of real-world experience, our team doesn’t just advise—we walk with you throughout the transition journey, from solving bottlenecks to preparing for strategic growth or M&A.