SA Asks: Which companies benefit from the U.S.-Vietnam trade deal?

[Nike Store in Hong Kong]
winhorse

Which publicly traded companies are likely to benefit from the recently announced trade deal between the United States and Vietnam?

Seeking Alpha analysts Far Horizon [https://seekingalpha.com/author/far-horizon] and Grassroots [https://seekingalpha.com/author/grassroots-trading] weigh in.

Far Horizon [https://seekingalpha.com/author/far-horizon]: The Vietnam trade deal is definitely a positive for apparel retailers like Nike (NYSE:NKE [https://seekingalpha.com/symbol/NKE]), Lululemon (NASDAQ:LULU [https://seekingalpha.com/symbol/LULU]) and Under Armour (UA [https://seekingalpha.com/symbol/UA]). For example, half of Nike's shoes are made in Vietnam. They recently estimated that the tariff impact on costs would be $1 billion annually. As I explained in a recent article, the deal with Vietnam should save them over $300 million of this.

As an economy projected to grow at over 5% annually for the rest of the decade, Vietnam's industrial expansion offers good opportunity for companies like Caterpillar (CAT [https://seekingalpha.com/symbol/CAT]), General Electric (GE [https://seekingalpha.com/symbol/GE]) and Honeywell (HON [https://seekingalpha.com/symbol/HON]) to trade with favorable terms. Vietnam's large population and agricultural segment are also attractive for agriculture and food companies like Archer Daniel Midland (ADM [https://seekingalpha.com/symbol/ADM]), John Deere (DE [https://seekingalpha.com/symbol/DE]) and Tyson Food (TY [https://seekingalpha.com/symbol/TY]).

Finally, investors might also look for opportunities to invest in Vietnam as a beneficiary of improved trade relations and U.S. investment. One simple way to do so is with sector ETFs like VanEcks Vietnam ETF (VNM [https://seekingalpha.com/symbol/VNM]).

Grassroots [https://seekingalpha.com/author/grassroots-trading]: July 2’s U.S.–Vietnam handshake takes Trump’s saber-rattling 46% “reciprocal” tariff and whittles it to a flat 20%, while U.S. exports, from Detroit metal to Midwest pork, walk into Vietnam toll-free. That’s instant oxygen for the brands that already shifted work south of the Chinese border. Nike (NYSE:NKE [https://seekingalpha.com/symbol/NKE]) and Under Armour (NYSE:UAA [https://seekingalpha.com/symbol/UAA]) make most of their shoes there, and Levi Strauss (NYSE:LEVI [https://seekingalpha.com/symbol/LEVI]) sources a mid-teens share of its denim line, so the deal removes a looming margin hit.

Apple (NASDAQ:AAPL [https://seekingalpha.com/symbol/AAPL]) breathes easier, too. Vietnam-built AirPods, iPads and Macs now face a survivable 20% duty instead of a crushing 46%, keeping Cupertino’s China-hedge alive.

On the outbound ledger, Boeing (NYSE:BA [https://seekingalpha.com/symbol/BA]) scores the marquee prize as Hanoi is poised to turn that long-floating memo into an $8 billion order for 50 737 MAX jets, a headline win for U.S. manufacturing.

MORE ON NIKE, UNDER ARMOUR, ETC.

* Apple's Hidden Moat Unlocked [https://seekingalpha.com/article/4798785-apple-stock-hidden-moat-unlocked]
* Why Apple's Glory Days Are Over [https://seekingalpha.com/article/4798654-why-apple-glory-days-are-over]
* lululemon athletica: Smells Like A Value Trap [https://seekingalpha.com/article/4798716-lululemon-athletica-smells-like-value-trap]
* Tech Voices: OpenAI warns on stock tokens, CoreWeave-Nvidia, Apple [https://seekingalpha.com/news/4465333-tech-voices-openai-warns-on-stock-tokens-coreweave-nvidia-apple]
* Vietnam trade deal likely to shift higher footwear costs to consumers [https://seekingalpha.com/news/4465281-vietnam-trade-deal-likely-to-shift-higher-footwear-costs-to-consumers]