The Vietnamese stock market experienced one of its deepest plunges in history on April 3, with the VN-Index losing nearly 80 points at one point following news that U.S. President Donald Trump announced retaliatory tariffs on several countries, including Vietnam.

By mid-morning, the VN-Index had dropped over 70 points, equivalent to a 5.5% decline. At 11 a.m., the loss widened to nearly 80 points, or approximately 6% - an unprecedented single-session drop for the index.

Almost all major stock groups fell sharply, including banking, real estate, retail, manufacturing, and export sectors.

As of 11 a.m., several large-cap stocks had hit their floor prices, including VRE, MSN, BCM, GVR, PLX, BVH, MWG, SHB, and TPB. Stocks in the seafood, textiles, and natural rubber sectors also suffered steep declines, with tickers like MSH, STK, GIL, VHC, IDI, and ANV among the hardest hit.

Despite the sharp drop, liquidity surged. As of 11 a.m., trading volume on the Ho Chi Minh City Stock Exchange reached VND 27.7 trillion (approximately USD 1.1 billion).

On the HNX30 index, many stocks fell by around 5%, while broader declines were seen on the UPCoM market, where several stocks lost over 10% due to wider trading bands.

By the end of the morning session, the VN-Index had slightly recovered but still closed with a steep loss of 67.52 points.

The sharp drop came after President Trump, in a statement released early morning Vietnam time, announced sweeping retaliatory tariffs on imports from countries around the world. The White House confirmed a base tariff of 10% on all imported goods, effective April 5.

Several countries and regions are facing even higher rates: China will be subject to a 34% tariff (combined with a previously announced 20%, totaling 54% effective April 9), the European Union 20%, Vietnam 46%, Taiwan 32%, Cambodia 49%, Thailand 36%, and Indonesia 32%.

Late last week, President Trump imposed a 25% tariff on imported automobiles, effective April 3, along with separate tariffs targeting China, Canada, and Mexico.

On the morning of April 3, foreign investors continued their selling spree, offloading a net VND 1.9 trillion (USD 75.5 million). In Q1 alone, they net sold over VND 26 trillion (approximately USD 1 billion).

According to Luu Chi Khang, Director of the Research Center at CSI Securities, the steep market reaction was due to the unexpectedly high tariff announced by the U.S. - with the 46% levy on Vietnamese goods particularly shocking.

"The U.S. is Vietnam’s largest export market, accounting for up to 30% of the country's export value. A 46% tariff will have a significant impact on the domestic economy," said Khang. "This effect could be long-lasting unless Vietnam enters negotiations to reduce the tariff rate."

He added that there remains hope for a lower rate if diplomatic efforts are successful in the coming weeks.

Meanwhile, in the U.S., following Trump’s announcement, futures markets saw a sharp drop of up to 5%, but losses later narrowed to around 2%. Analysts said the White House’s move signals an attempt to push affected countries toward negotiations.

Notably, the 10% general tariff - effective from April 9 - is considered relatively positive, as rumors had previously pointed to a potential 20% rate.

Manh Ha