Vietnam Insight

Highlights:

• On April 2, U.S. President Donald Trump announced a new tax policy, declaring a 46% tax on goods imported from Vietnam. 
• The Prime Minister has ordered the establishment of a rapid response team in response to the U.S. imposing a 46% tax on Vietnamese goods. On the morning of April 3, Prime Minister Pham Minh Chinh chaired a meeting of the Permanent Government Committee with various ministries and agencies to assess the situation. 
• From April 6 to April 14, Deputy Prime Minister Ho Duc Phoc will attend the High-Level Policy Dialogue program at Columbia University (New York), visit the U.S., and make an official visit to the Republic of Cuba.

Technical view: The VN-Index closed the week at 1,210.6 (-106.7 points; -8.11%) with increased liquidity. The market dropped sharply on Thursday and Friday. This is considered a rare drop and is even higher than the -6.28% drop during the COVID period in a single session. As a result, the market has officially wiped out all gains made since the beginning of the year and is approaching the support trendline below. Although the index had a continuous increase of over 50 points after opening, it still dropped by -1.56%.

Investment ideas: Investors should not rush to catch the bottom, as the index could decline further. It’s better to wait for the market to build a price base for at least 2-3 sessions. For stocks that violate short-term cut-loss thresholds, investors should sell to protect their accounts.