Vietnam is set to benefit the most in ASEAN from the US move to a flat 15% Section 122 tariff surcharge. This change cuts tariff costs for Southeast Asia and makes exports to the US more price-competitive.
Vietnam’s export-led growth model and its role in global supply chains mean the new tariff structure should support production for the US market. Vietnam is also the third-largest Asian exporter to the US.
The change also removes the higher tariff rates used under the previous IEEPA approach. This matters for Vietnam because many of its exports to the US are low value-added consumer goods.
Key product groups include apparel, footwear, and toys. These categories previously faced steeper penalties. Removing the higher rates should strengthen Vietnam’s position against regional and global competitors.
The article was produced using an AI tool and reviewed by an editor.
Looking back at the US shift to a flat Section 122 tariff in 2025, the benefits for Vietnam’s export-led economy are clear. This ongoing strength may support the Vietnamese Dong (VND), since stronger export revenues can increase demand for the local currency. Derivative traders may want to watch for opportunities to go long VND against the US dollar in the coming weeks.
Recent data supports this view. Q4 2025 GDP growth reached 6.72% year-on-year. January 2026 trade figures also showed exports up 42% from the prior year, led by shipments to the US. This suggests the tariff change is directly adding to economic momentum.
This strong backdrop can also support long positions in Vietnamese equities, including VN-Index futures or call options. Key beneficiary sectors include apparel, footwear, and furniture manufacturing, which gained the most from the removal of IEEPA rates. These companies are posting record profits, helping push the index higher.
In the past, when countries have gained this kind of trade advantage, their currency and equity markets have sometimes seen multi-year bull runs. Even if the first sharp move has already happened, the fundamentals still look supportive. For a bullish but more conservative approach, selling out-of-the-money puts on Vietnam-focused ETFs may offer a way to collect premium while expressing a positive view.
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