The Vietnamese stock market continued to face adjustment pressure last week, especially in the last 3 sessions of the week due to concerns about escalating tariffs. On March 26, the US imposed a 25% import tax on cars, 10 times higher than the old rate, effective from April 2.
This move caused global auto stocks to plummet, negatively affecting investor sentiment, which has been unstable due to the prolonged trade war. In addition, on April 2, the US is expected to announce a countervailing tax policy targeting a group of 15 countries with high taxes and large trade surpluses, in which Vietnam is at risk of being affected.
Mr. Dinh Quang Hinh, Head of Macro and Market Strategy, VNDIRECT Securities Joint Stock Company, predicted that next week, the market may maintain a cautious mentality, and VN-INDEX can assess the important support zone of 1,300 points (+/-10 points).
"However, the possibility of the index falling further into this zone is not high due to concerns about tariffs that have largely been reflected in the recent adjustment. Vietnam has also taken timely and drastic steps to reduce the risk of high tariffs from the US, including signing trade deals worth up to $90 billion with the US and considering tax reductions on some imported goods such as cars, ethanol, LNG, agricultural products, wood and wood products, helping to balance the trade balance. In addition, the direct impact of tariffs on the stock market is not large because the proportion of exported stocks in stock indexes is still low. Therefore, the risks and impacts of the tariffs may have been exaggerated, said Mr. Hinh.
VNDIRECT analyst believes that if VN-INDEX retreats to the support zone around 1,300 points (+10 points), this will open up opportunities for disbursement at good capital prices for medium and long-term targets, especially in industries with positive prospects this year such as banking, securities, real estate, electricity and public investment.
In 2025, the market is converging many supporting factors to expect a positive trend, including attractive valuations, positive business profit growth prospects, and great benefits from the implementation of the KRX system and market upgrading.
