Vietnam stands to benefit the most in ASEAN from the US move to a flat 15% Section 122 tariff surcharge. The change cuts tariff costs for Southeast Asia and makes the region’s exports more price-competitive in the US.
Vietnam’s export-led growth model and its key role in global supply chains mean this new tariff setup should support production for the US market. Vietnam is also the third-largest Asian exporter to the US.
The shift also removes the higher tariff rates used under the previous IEEPA approach. This matters for Vietnam because many of its US exports 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 versus regional and global competitors.
The article was produced using an Artificial Intelligence tool and reviewed by an editor.
Looking back at the US switch to a flat Section 122 tariff in 2025, the benefits for Vietnam’s export-driven economy are clear. This ongoing strength points to potential upside for the Vietnamese Dong (VND), since stronger export revenues typically raise demand for the local currency. Derivatives traders may want to look for chances to go long VND versus the US dollar in the weeks ahead.
Recent data supports this view. Q4 2025 GDP growth came in at 6.72% year-on-year. January 2026 trade data also showed exports jumping 42% versus 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, especially through VN-Index futures or call options. Strength has continued in sectors such as apparel, footwear, and furniture manufacturing, which benefited most from the removal of IEEPA rates. Many companies in these areas are now reporting record profits, helping lift the index.
Historically, when countries gain this kind of trade advantage, their currency and equity markets can enter multi-year bull runs. While the biggest initial move may already be over, the fundamental case still looks strong. For investors with a bullish but more conservative stance, selling out-of-the-money puts on Vietnam-focused ETFs can offer a way to earn premium while keeping a positive view.
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