Vietnamese stocks have the biggest drop in the world, what should investors do?

At the end of the trading session on April 3, VN-Index lost 88.27 points (-6.7%) to 1,229.56 points; HNX-Index decreased 18.6 points (-7.18%) to 219.53 points, the lowest since the beginning of the year and became the market with the strongest decline in the world after US President Donald Trump announced a tax rate of at least 10% on almost all goods imported into the US. Of which, the tax rate for Vietnam is 46%.

The entire market was left in light blue as stocks fell across the board. The 6.7% drop was one of the sharpest declines in the history of the stock market.

The entire market had 452 stocks falling to the limit, only 88 stocks increased in price. Total transactions in the entire market reached 43,439 billion VND, the highest in many months, with about 2 billion shares exchanged.

On stock investment groups, many investors expressed their worries and sold off stocks. In the VN30 basket, not a single stock remained green.

Speaking to reporters of Nguoi Lao Dong Newspaper this afternoon, April 3, Mr. Nguyen The Minh, Director of Analysis, Individual Clients, Yuanta Vietnam Securities Company, said that in the history of 2020 or 2021, there have been sessions where the VN-Index fluctuated very strongly, but to have the sharpest drop in the world like today's session with an amplitude of 6.7% is too "terrible".

"Many other markets in the region only decreased by about 1-2 or even 3%. In Vietnam, investors overreacted to the news that the US would impose a 46% tax on imported goods in the near future, so they sold off in panic. This comes from the fact that the proportion of individual investors trading in the market accounts for up to 90%, so the crowd mentality is difficult to avoid," said Mr. Minh.

VN-Index appears green, floor price drops in series

What will happen in the next sessions? What should investors do or continue to sell off? Experts from Yuanta Vietnam Securities Company believe that the market may continue to decline in the first half of tomorrow's session (April 4) if there is a margin call or force call (liquidation). Investors can add more money so that their portfolio does not fall into a warning state of having to sell off stocks.

"For investors who do not use margin, they should calmly and slowly observe the market. Because in the past, deep declines like today often had a quick recovery. The impact of the US tax imposition is not immediate and there is still time for Vietnam to negotiate," said Mr. Minh.

Regarding the impact of the US imposing tariffs on goods exported from Vietnam, Mr. Truong Dac Nguyen, Head of Market Strategy Analysis at Tien Phong Securities (ORS), said that the reciprocal tax will be applied at 10% first, and will be applied at a higher rate in countries with large deficits with the US from April 9.

The market is blank on the buy side in the afternoon session with many stocks

For Vietnam, the 46% tax rate is not a reciprocal tax applied to all goods. This is the maximum rate, similar to anti-dumping tax and protection tax, so it will be outside the tax schedule and will be considered for each item. Currently, the correct understanding is that the reciprocal tax rate will be 10% first and wait for the US to announce the investigation results to see which items will be subject to the maximum 46%.

"As a developing partner with good diplomatic relations with the US, Vietnam still has a lot of room to negotiate and adjust the terms," ​​said Mr. Nguyen.

Source: https://nld.com.vn/chung-khoan-viet-giam-manh-nhat-the-gioi-nha-dau-tu-nen-lam-gi-196250403145418497.htm