HÀ NỘI — Việt Nam's stock market witnessed its most dramatic decline in history on Wednesday following news that the United States would impose a 46 per cent retaliatory tariff, with the VN-Index plunging by more than 6.6 per cent, the sharpest drop in the region. Liquidity surged amid panic selling, while foreign investors also extended their massive net selling streak.

By the end of the session on Thursday, the VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) dropped by a staggering 87.99 points, or 6.68 per cent, to close at 1,229.84 points.

Market breadth was deeply negative, with only 13 stocks gaining and 352 losing ground. Market liquidity soared by 105 per cent from the previous session, reaching VNĐ39.6 trillion (approx. US$1.5 billion).

The VN30-Index, which tracks the 30 largest listed stocks by market capitalisation, also collapsed, falling 93.76 points, or 6.81 per cent, to 1,283.18 points. All 30 constituents declined, with 28 hitting their floor price.

Leading the decline was the banking sector, particularly Vietcombank (VCB), which fell by 6.94 per cent to its floor, that alone wiping out nearly 9 points from the VN-Index. BIDV (BID) and VietinBank (CTG) also hit their floors, losing 6.98 per cent and 6.91 per cent, respectively.

According to tuoitre.vn, Nguyễn Thế Minh, Director of Individual Client Analysis at Yuanta Việt Nam, said this was not only the biggest drop in Asia for the day but also marked a historic record in Việt Nam’s stock market in terms of absolute points lost. He noted that during the 2008 crisis, the market saw a larger percentage drop, but Thursday's session marked the largest point decline ever.

Minh recalled the market correction in January 2021 when the VN-Index lost 73 points, highlighting that liquidity in Thursday’s session also hit an all-time high, with over VNĐ34 trillion traded in the morning session alone and nearly VNĐ40 trillion by closing.

Minh advised investors to stay calm and restructure their portfolios carefully, warning against panic selling at any cost.

He noted that the 46 per cent tariff announced by President Donald Trump would only take effect on April 9, meaning Việt Nam still has a week to negotiate. “The upcoming US visit of Deputy Prime Minister Hồ Đức Phớc is expected to focus on negotiations to revise this retaliatory tax,” Minh added.

Nguyễn Duy Phương, Chief Investment Officer at DG Capital, commented that the tariff announcement had created a significant shock in investor sentiment. However, he clarified that the 46 per cent figure was not final and could be adjusted through diplomatic discussions.

“The impact of this development is global, not limited to Việt Nam alone,” Phương said.

He recommended that investors heavily using margin trading should consider reducing leverage, given the long-term nature of the tariff risk versus the short-term volatility of investor sentiment.

“Those with a balanced cash-to-equity portfolio need not be overly concerned. The market is likely to stabilise once the Government engages in further negotiations on trade policies, helping restore investor confidence,” Phương said.

On the Hà Nội Stock Exchange (HNX), the HNX-Index also posted a sharp drop, falling 17.18 points, or 6.81 per cent, to close at 220.95 points.

Meanwhile, foreign investors were heavy net sellers, posting a record net sell of nearly VNĐ3.7 trillion on the HoSE alone. VNS