Vietnam’s VN-Index dropped 6.2 percent in April, falling from 1,306 to 1,226 points, according to IndexQ, marking the steepest monthly decline in a year, VN Express has reported. This placed Vietnam second on the list of the world’s worst-performing stock markets, behind only Argentina, which saw a 10.8 percent drop.
The publication goes on to note that:
- Investor sentiment in Vietnam soured sharply following US President Donald Trump’s announcement of a 46 percent reciprocal tariff on Vietnamese goods.
- The announcement triggered four consecutive days of selloffs, breaking through key support levels and briefly pushing the VN-Index below 1,100 points.
- The market rebounded following the US decision to postpone tariff imposition for 90 days, with stocks in domestic retail, public investment, and securities sectors—perceived as less exposed to US trade risk—hitting their upper daily limits (stocks price movements are capped at 7 percent a day in Vietnam).
- Matthew Smith, Research Director at Yuanta Securities Vietnam, forecasts that the VN-Index will range between 1,200 and 1,300 points until July 9, with limited trading activity and low liquidity.
- Yen Chen-Hui, Vice President of Yuanta’s Research Center, says investors should diversify their portfolios across asset classes, such as gold, bonds, and deposits, amid ongoing macroeconomic uncertainty.
See also: What’s Next for Vietnam if Trump’s 46 Percent Tariff is Here To Stay?