Daily Market Watch 08/07/2025: Tariff Relief Boosts Confidence In Vietnam; Massive Retail And Foreign Inflows Propel Market Higher

THE EQUITY MARKET

o        Vietnam’s stock market surged today, buoyed by the news that the U.S. government will impose higher-than-expected tariffs on a number of countries, including Korea (25%), Japan (25%), Indonesia (32%), Bangladesh (35%), and Thailand (36%). Notably, Vietnam faces relatively lower tariffs at 20%, granting the country a potential competitive edge in global trade, especially in key export sectors.

o        The VN-Index opened on a positive note, holding above the 1,400-point threshold throughout the morning. Momentum accelerated in the afternoon as strong buying pressure drove the index to close at its intraday high of 1,415 points (+0.96%), marking a new 3-year high and firmly establishing a breakout above the psychological 1,400 level.

o        Investor participation was robust, with total trading value hitting USD 1.09 billion. Retail investors showed heightened activity, encouraged by the belief that the index could soon target the 1,500-point mark, amid expectations of resilient macroeconomic conditions and solid corporate earnings supported by favorable tariff treatment.

o        Foreign investors also played a key role, extending their net buying streak with an inflow of USD 58 million today. Over the last five sessions, they have accumulated a net buy of USD 295.6 million—the strongest foreign inflow in recent years. Vietnam is increasingly seen as a beneficiary of the shifting global trade landscape, and optimism is also building around a potential emerging market (EM) status upgrade, further enhancing the country’s attractiveness to global capital.