Market Highlight 03.07.2025

   President Donald Trump announced last night that a trade agreement between Vietnam and the United States has been finalized following weeks of intensive negotiations between the two countries, just days before the reinstatement of the U.S reciprocal tariff measures on July 9. The tariff rate on goods imported into the U.S will be significantly lower than the 46% level previously announced on April 2. Specific details of the agreement are expected to be released in the coming days, positioning Vietnam as the third country worldwide - after the United Kingdom and China - to successfully conclude tariff negotiations with the U.S. U.S equity markets responded strongly to the news, with both the S&P 500 and the Nasdaq Composite hitting fresh record highs last night following the announcement of the trade breakthrough. Shares of U.S companies with substantial supply chains in Vietnam surged: Nike rose 4%, Lululemon gained 0,5%, Columbia Sportswear added 1,5%, and VF Corporation - which owns The North Face and Vans - climbed nearly 2%. Vietnam was the sixth-largest source of U.S imports in 2024, with total export turnover to the U.S reaching nearly USD 137 billion. Vietnam’s trade surplus with the United States ranks as the third largest globally, behind only China and Mexico. As of the end of May 2025, Vietnam’s exports to the U.S had increased by 35% year-over-year, as U.S businesses ramped up imports ahead of the reciprocal tariff deadline on July 9.
  Domestically, market sentiment may turn more positive now that this major sticking point - Vietnam’s tariff agreement with the U.S - has been partially resolved. However, more time will be needed for the full details of the agreement to be disclosed and for the market to better assess its broader macroeconomic impact. The USD/VND exchange rate is forecast to adjust lower today, trading in the range of 26.050 - 26.220.

Please contact the nearest Asia Commercial Joint Stock Bank's branch to receive information and consultancy if you are in need of making any foreign exchange and derivatives transactions.

Asia Commercial Joint Stock Bank assumes no responsibility or liability for any purpose of reference or using the information provided by this newsletter.

Directly contact us to receive market news and consultancy on foreign exchange products and derivatives:

- Financial Markets Division – Email: ktttc@acb.com.vn ; or

- Mr. Khanh Hoang (Financial Markets Senior Analyst) – Email: hoangnk@acb.com.vn