Trump Era May Boost Thai and Vietnamese Stocks
- Kelvin Tan
- Nov 14, 2024
- 2 min read
Updated: Nov 21, 2024
Thailand and Vietnam are poised to be among the "biggest beneficiaries" of Donald Trump's return to the White House, according to Win Phromphaet, Executive Chairman at Kasikorn Asset Management Company.
With over 1.6 trillion baht (US$46 billion) in assets under management, the fund manager predicts a significant shift in investment away from China due to expected steeper tariffs on Chinese goods under Trump’s administration. This redirection of manufacturing and investment could boost the economies of the two Southeast Asian nations.
Win forecasts Thailand’s SET Index could rise by 10%, reaching approximately 1,600 points next year, while Vietnam remains a "top pick" for Kasikorn, though no specific target was provided for its market.
Reflecting on Trump’s first presidency, he remarked, "Thailand and Vietnam will be among the biggest beneficiaries in the region for manufacturing relocations."
Under Trump's previous term, both nations emerged as manufacturing hubs for industries like automobiles and electronics, outperforming their regional peers. Trump’s proposed tariffs—up to 60% on Chinese goods and 20% on imports from other countries—may add to global trade tensions, but Win believes the benefits for Thailand and Vietnam will outweigh the risks.
Recent economic developments have bolstered investor confidence in both nations. The SET Index has climbed over 13% since August, following measures introduced by Thailand’s new government led by Prime Minister Paetongtarn Shinawatra.
Meanwhile, Vietnam’s stock market has gained over 10% this year, buoyed by strong economic growth and anticipation of an emerging-market status upgrade by FTSE Russell.
Win's optimistic perspective highlights increasing confidence among investors exploring opportunities in Southeast Asia as the global trade landscape continues to evolve.
Article by Bloomberg News for Bangkok Post. Read here or download the PDF below.
Comments