JPMorgan upgrades Vietnam stocks to overweight

JPMorgan upgrades Vietnam stocks to overweight

In a significant move, JPMorgan has upgraded Vietnam's stock market outlook to "overweight," reflecting the recent trade deal announced by President Trump. The upgrade comes as the U.S. and Vietnam finalize details of a trade agreement that includes a 20% tariff on Vietnamese exports and a 40% tariff on transshipped goods [1].

The deal, which is not yet finalized, marks a substantial shift in U.S.-Vietnam trade relations. President Trump announced the trade deal on July 2, stating that Vietnam would pay a 20% tariff to sell products in the U.S. and a 40% tariff on transshipped goods. This deal aims to benefit U.S. businesses, manufacturers, and farmers, particularly those exporting products like cotton to Vietnam [1].

JPMorgan's upgrade to "overweight" suggests that the investment bank expects the trade deal to have a positive impact on Vietnam's stock market. The upgrade comes as Vietnam ranks sixth in total goods exported to the U.S., with $137 billion worth of products in 2024, more than double the amount over the previous five years [1].

The trade deal also includes a 90-day pause on reciprocal tariffs, which is expected to be extended until August 1. This pause allows time for further negotiations and potential adjustments to the terms of the deal [1].

While the trade deal is seen as a win for U.S. businesses, it may have a negative impact on American consumers, who will ultimately bear the burden of increased tariffs. Clark Packard, a trade policy research fellow at the Cato Institute, noted that the deal is not good news for consumers [1].

The Trump administration's focus on equitable trade practices continues with this deal, following previous agreements with China and the U.K. As the July 9 deadline approaches, both Secretary of Treasury Scott Bessent and White House Spokesperson Karoline Leavitt indicated that the president is likely to delay the enforcement of reciprocal tariffs until August 1 [1].

References:
[1] https://members.asicentral.com/news/industry-news/july-2025/trump-announces-trade-deal-with-vietnam/