Market surges after Donald Trump calls Vietnam's name twice

Mention Vietnam twice every 3 months

In a series of recent tweets, US President Donald Trump has made a new argument that American consumers can avoid tariffs by buying non-Chinese goods, from countries not subject to tariffs, or buying domestic US products.

US President Donald Trump and North Korean leader Kim Jong-un at the second US-North Korea Summit in Hanoi, Vietnam

Many companies that are subject to tariffs will leave China and manufacture in countries like Vietnam or other Asian countries. That is why China is so keen to make a deal.

Once again, Vietnam has become the focus of a central issue that is attracting the attention of almost the entire world, especially the financial community, stock markets, and large and small businesses globally.

A statement that is no different from a PR, an advertisement of great value, from the head of the world's number 1 economy - US President Donald Trump.

Of course, Vietnam does not have to pay for Mr. Trump's valuable statement. Meanwhile, at least the world's business community and consumers know that Vietnam is a place with goods that meet US standards, that Vietnam is a place that can receive FDI capital flows, and that the world's leading businesses can set up production bases.

Less than three months earlier, Vietnam had also become the focus of global attention with about three thousand international journalists covering the US-North Korea summit between US President Donald Trump and Chairman Kim Jong-un in Hanoi for several days.

A series of Vietnamese enterprises have also signed billion-dollar contracts in the big game with the US right on the sidelines of the US-North Korea summit. The contracts not only contribute to increasing trade turnover between the US and Vietnam, but also bring the image of a renewed Vietnam to the world.

After 24 years since the normalization of relations between Vietnam and the United States (July 11, 1995 - 2019), trade between the two countries has exploded from zero, increasing more than 100 times to more than 50 billion USD. The US - Vietnam relationship is at a new height, with a focus on economic relations, from billion-dollar contracts between businesses on both sides, which is the basis for the development of good relations between the two countries.

But more importantly: at an event that attracted the attention of the whole world - the US-North Korea summit on the issue of denuclearization, Vietnam was better understood by the world with strong economic development steps, at a high level for a long time and a society that is considered stable.

Every appearance of Mr. Trump or North Korean leader Kim is accompanied by images of Vietnam, of Vietnamese businesses such as VietJet of Ms. Nguyen Thi Phuong Thao, Vingroup of billionaire Pham Nhat Vuong or Bamboo Airways of Mr. Trinh Van Quyet,...

Global War and Opportunities for Vietnam

A trade war between the world's two largest economies is expected to have negative impacts on the US and China, slowing down the world's economic growth and most countries will be affected, due to capital withdrawal, decreased global demand... Countries large and small are all negatively affected.

Vietnam is not outside the general negative impacts on the world financial market. The stock market is affected, exchange rates fluctuate strongly, foreign capital may be withdrawn,...

However, compared to other countries, Vietnam is still considered a country that benefits a lot from the tariff war between the US and China if it can take advantage of the opportunity to attract foreign capital flows, capital flows fleeing from China as well as boost exports to the US...

In early April, the ADB predicted that Vietnam’s economy would benefit from the US-China trade war and could add 2% to its GDP thanks to it. Vietnam’s exports could increase by 7.3% when the US imposes tariffs on $200 billion (as has already happened).

In a recent announcement, the US has announced a list of 25% tariffs on an additional $300 billion worth of Chinese goods, even though Mr. Trump announced that he might meet Mr. Xi Jinping on the sidelines of the G20 summit in June. This list includes everything from clothes, children's toys to mobile phones and laptops...

Mr. Donald Trump and Chinese Vice Premier Liu He.

If the US imposes tariffs on this list, almost all Chinese goods exported to the US will be subject to punitive tariffs and this will be an opportunity for many countries in the world, including some countries listed as the number 1 beneficiaries such as Vietnam, Brazil and Mexico, especially in the fields of manufacturing and agriculture...

The latest developments on the stock market also show this. Vietnamese stocks had a strong increase on May 13 and continued to rise in the early afternoon of May 14 despite the turmoil in world stocks, US stocks "on fire" with the US Dow Jones industrial index falling nearly 620 points, the S&P 500 also falling...

Suggestions about FDI capital flowing into Vietnam helped industrial park infrastructure stocks such as Kinh Bac, SZL, LHG, VGC, D2D,... all increase sharply. Previously, textile stocks,... also broke out quite strongly with the expectation that stock prices would increase by several times, especially in the context that many Vietnamese enterprises will benefit from a 0% tax rate when exporting to CPTPP member countries, benefit from the ASEAN free trade area, bilateral agreements with Japan, Korea, Chile,... and the impact of the Vietnam - EU agreement (EVFTA) that may be approved in 2019.

Previously, some regional newspapers also said that the tariff barriers set up by Mr. Trump are not beneficial to the US or China, but can benefit emerging countries, including Vietnam. Big brands such as Adidas, Nike, Brooks Running, Apple, etc. are targeting Vietnam because besides the advantage of dense FTAs, Vietnam is providing labor with extremely competitive prices and skills, while production in China is increasingly expensive.

Previously, HSBC ranked Vietnam among the top Asian markets that benefit the most from many scenarios of the trade war. The trend of shifting capital flows and production bases of large corporations is starting and will continue to explode in the future.