Vietnam is one of the countries to whom the US President Donald Trump set the most severe export duties on Wednesday.
The situation is also violently treated by a Finn investing in Vietnam Pain elite -This shareholders. Fund’s portfolio manager wrote on the subject Petri Deryng Thursday.
“The treatment of Vietnam seems very unfair, and the solution was surprised by all. The negotiations between the countries are sure to continue, but now you only know the tariffs already already placed.”
“Vietnam’s GDP growth figures for this year will have to be drastically lowered. The Vietnam Stock Exchange has already reacted drastically. The stock market may remain very weak in the coming days and weeks,” Deeryg describes.
According to Investing.com, the Vietnam Stock Exchange index fell just by less than seven percent after the announcement of the tariffs on Thursday morning. The slight rise in the first half of the year was wiped off a day.
Trump’s duties were higher than expectations for many Asian countries. For Vietnam, a lot of consumer products for Western countries, they were up to 46 %.
“Customs have a tremendous negative impact on Vietnam’s exports, 30 % of which have gone to the United States,” Deryng says.
He emphasizes that since Vietnam is manufactured, among other things Niken Slippers, the effects are also very felt in the United States. Both the American consumer and the Vietnamese employee suffer.
“The negative effects of customs will strike the economy of the US and Vietnam immediately. For example Niken Slippers will have a 46 % price increase for American customers, ”Deyng estimates.
“At the same time, this means that exports of slippers to the US market will decrease, leaving Vietnamese textile workers unemployed. Nike manufactures slippers in Vietnam at 140 factory.”
From challenging
According to Deyng, Vietnam made his “everything” in advance for Donald Trump’s customs.
“In March in March, Vietnam agreed with the US Ministry of Commerce for new energy projects and, among other things, purchasing of LPG.
However, according to him, the United States did not use the principle of reciprocity when it set its own tariffs.
“The basis for calculation was the ratio of trade between countries and the percentage obtained from it.”
This calculation model has already been widely criticized. The model seems to assume that the trade balance itself would directly determine the trade policy between countries.
According to Deyng, President Trump has the power to do so, but the treatment seems very unfair. In many estimates, it has also been considered to be some kind of opening for new trade negotiations – which would allow for calculating customs. In these reviews, Trump is seeking concessions from trading partners.
However, Pyn Elite’s Trump’s blow already looks unfortunate. Deryng suspects the difficult year will be difficult.
“From 2025 on, a very challenging Pyn Elite investment is coming. The Vietnam Stock Exchange is accompanied by many positive triggers, but Trump’s economic policy -tearing style will rapidly weaken the world’s economic sprocket, and especially Vietnam’s exports will be in difficulty,” he writes.
“Of course, in a dramatically changing investment environment, we strive to make the transfers we look at our portfolio’s emphasis, depending on the development of each share of each share,” he adds.
Pyn Elite has recently forged annual income of 20-43 %. On the other hand, there have also been a dark years, which may have been nearly 30 percent of negative returns.