Vietnam Business Confidence Surges as Firms Target AI, ASEAN Growth: UOB

HANOI – Business confidence in Vietnam has recovered significantly, with companies accelerating investment in artificial intelligence, energy efficiency, and regional expansion to navigate rising costs and geopolitical headwinds, according to the UOB Business Outlook Study 2026.

The survey indicates that 85% of Vietnamese businesses hold a positive outlook, a substantial increase from 48% in 2025 when sentiment was dampened by uncertainty over U.S. tariff policies. More than 90% of respondents anticipate improved business performance in 2026, with revenue growth expected to accelerate over the subsequent two years.

Despite the optimism, nearly half of the firms surveyed reported that operating costs have risen due to tariffs and geopolitical shifts. This has pushed companies to prioritize efficiency, operational resilience, and long-term strategic transformation.

Energy Efficiency Becomes a Strategic Priority

Energy management has emerged as a critical focus area for Vietnamese enterprises. The study found that 96% of local respondents view energy efficiency as important, well above the regional average of 87%.

In response to volatile global energy markets and supply stability concerns, businesses are implementing more structured energy management strategies. Key priorities include securing reliable energy supplies (cited by 55% of firms), optimizing energy consumption (53%), and reducing overall energy use (47%).

To achieve these goals, companies are directing capital towards tangible assets. Forty-three percent are investing in energy-efficient equipment, while 42% are installing solar power systems, balancing cost management with the need for operational resilience.

AI Adoption Accelerates Amid Investment Push

Vietnamese businesses are intensifying their digital transformation efforts, with artificial intelligence assuming a central role. According to the study, eight in 10 companies have started to implement AI, though only 25% have deployed more advanced applications. The research noted that businesses with more mature digital infrastructure are significantly more likely to adopt AI solutions.

Among firms currently using AI, 49% reported gains in productivity, 47% cited improved cost efficiency, and 46% attributed revenue growth to the technology. This growing confidence is reflected in investment plans, with two-thirds of respondents intending to increase their AI-related spending by more than 25% in 2026.

However, significant barriers to adoption persist. Key challenges identified by businesses include high investment costs (49%), limitations in available AI solutions and partner ecosystems (48%), and insufficient data and system readiness (47%).

Firms Diversify Supply Chains, Target ASEAN Markets

Supply-chain resilience remains a paramount concern, with 97% of respondents describing it as critical to their operations. While disruptions have eased from previous years, companies still face challenges from geopolitical developments (40%), procurement complexity (34%), and regulatory uncertainty. Overall, 88% of businesses stated that regulatory issues affect their operations.

To fortify their supply chains, four in five companies plan to diversify their supplier networks in 2026. More than half intend to increase sourcing from within the ASEAN bloc, while 23% plan to expand their use of domestic suppliers.

Nearshoring is also gaining momentum. Approximately one-third of respondents plan to establish or expand manufacturing operations in Vietnam, and 43% are considering a broader expansion across Southeast Asia.

The survey highlighted strong interest in overseas growth, with seven in 10 Vietnamese businesses having expanded internationally in 2025. Nine in 10 plan further expansion over the next three years. Furthermore, 80% expect to invest abroad within the next two years, with planned investments averaging more than US$28 million.

ASEAN remains the preferred destination, chosen by 65% of respondents. Thailand, Singapore, and Indonesia were identified as the most attractive markets. The primary challenges cited for entering foreign markets were legal and regulatory requirements (36%), identifying suitable local partners (36%), and accessing collaboration opportunities.

To facilitate this regional expansion, UOB noted its network of 11 Foreign Direct Investment (FDI) Advisory Centers across Asia. The bank has also launched its Financial Supply Chain Management solutions on the UOB Infinity platform in Vietnam, enabling digital management of cross-border supply chains.

"Vietnamese businesses are demonstrating resilience and adaptability in an increasingly complex global environment," said Annie Pham Nhu Anh, head of wholesale banking at UOB Vietnam. "We are seeing a shift from recovery to transformation, with companies investing in digital capabilities, strengthening supply chains and expanding across ASEAN to capture long-term growth opportunities."

She added that the bank's regional network and local expertise help clients navigate uncertainty and pursue cross-border growth.

The UOB Business Outlook Study, now in its seventh year, has shifted to a twice-yearly publication. The 2026 edition surveyed firms in Singapore, Indonesia, Malaysia, Thailand, Vietnam, mainland China, and Hong Kong. The Vietnam findings are based on an online survey of 226 medium-sized and large enterprises.

UOB Vietnam began operations as a wholly owned subsidiary on July 2, 2018. The bank has been present in the country for over three decades, opening a representative office in 1993 and becoming the first Singaporean bank to establish a branch in 1995. It currently operates five branches in Ho Chi Minh City and Hanoi after acquiring Citibank Vietnam's consumer banking business in 2023.