Vietnam's stock market experienced a significant decline, with the index dropping by 36 points, or 3.0%, reaching 1,193 in early trading on Friday. This downturn extends the losses witnessed in the previous session. The drop follows the announcement by U.S. President Trump of a 46% tariff imposition on Vietnam, causing the VN Index to hit its lowest point since August 2024. This decline mirrors the slump on Wall Street overnight, as concerns grow over the potential for global retaliation to affect economic growth adversely.
All sectors witnessed a decline, with the communications sector experiencing the most significant drop. The United States represents Vietnam's largest export market, with last year's trade surplus exceeding USD 123 billion. Despite these developments, Vietnam has maintained its economic growth target of at least 8% for the year. Exports to the U.S. make up nearly 30% of Vietnam's GDP.
Among the most impacted companies were Sunshine Group, which fell by 7.8%, TCT Hang Khong, down by 6.8%, Masan Group Corp., which decreased by 5.5%, Petrovietnam Gas, dropping by 5.0%, and Saigon Beer, declining by 3.7%. For the week, the index is on track for a 9.1% decline, fueled by concerns of a global trade war.
