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Vietnam Stocks Hit Ceiling as Tariff Delay Sparks Record Rally
Vietnam’s stock market staged a rally today, VN-Index surging 6.7% following the news of a delay in the imposition of Trump’s “reciprocal tariffs”. Nearly all stocks across the board hit their 7% ceiling limits, including every single constituent of the VN30. This marks the first time in history that all VN30 stocks reached the ceiling with no sellers available. Surprisingly, there were very few sellers on the market, with total turnover across the three bourses at just USD236 million in the morning session, compared to the month-to-date average half-day volume of USD781 million.
As noted in our earlier updates, firms directly linked to FDI, and exports account for only 13% of the VN-Index’s market capitalization. The recent correction, although broad-based, has opened attractive accumulation opportunities, especially in defensive sectors focused on domestic demand.
Figure: The VN30 constituents this morning – All at ceilings and no more sellers
Earlier today, trade negotiations between Vietnam and the U.S. showed initial signs of progress, as both sides agreed to consider minimizing “non-tariff barriers to each other’s goods” and enhancing “coordination to control and prevent acts of trade fraud”. We view this as a constructive step toward laying the groundwork for a potential trade agreement within the next 90 days. Notably, Vietnam was among the first countries to initiate direct contact with President Trump. With China’s General Secretary expected to visit Vietnam this month to reinforce bilateral ties, there may also be added incentive for the U.S. to accelerate its negotiations with Vietnam.
Figure: Vietnam Deputy PM Ho Duc Phoc met with U.S. Trade Representative Jamieson Greer on April 9, 2025
Photo: VGP
In a separate development, FTSE released its mid-year review yesterday. FTSE Russell acknowledged the sustained efforts of Vietnamese authorities in addressing regulatory and operational challenges. While some concerns persist, we continue to expect Vietnam’s upgrade to Secondary Emerging Market status in September 2025—a move that could attract an estimated $5–6billion in foreign inflows, according to a representative from FTSE Russell.
Source: TIM
