U.S. Tariff Risks on Vietnam – Top 10 Korean Stocks to Watch & In-depth Stock Analysis

U.S. Tariff Risks on Vietnam – Top 10 Korean Stocks to Watch & In-depth Stock Analysis

※ Recently, the United States has implied new tariff risks on imports from Vietnam, leading to significant anticipated changes in the global supply chain and trade environment. As Vietnam has become a vital overseas production base and a key North American export bridge for Korean manufacturing firms, any tariff imposition could have a substantial impact on related industries and the domestic stock market. In this post, I recommend 10 Korean-listed companies likely to be affected by potential U.S.-Vietnam tariff risks, followed by a comprehensive analysis of upside and downside factors, technical outlooks, and future investment prospects. 😅

 

Overview

Vietnam serves as a hub for Korean companies in garments, footwear, electronics, auto parts, IT, and household appliances. If the U.S. intensifies tariff policies against Vietnam, Korean companies with manufacturing lines in the country, or with sizeable exports to the U.S., can be directly impacted. On the other hand, supply chain realignment and reshoring may create new opportunities such as expanded domestic production and export diversification. The following are 10 representative stocks that could be affected by these changes in the Korean stock market.

Recommended Stocks (Ticker)

1. Samsung Electronics (005930)
2. Hyosung TNC (298020)
3. Hansae (105630)
4. LF (093050)
5. LG Electronics (066570)
6. Hwaseung Enterprise (241590)
7. Iljin Hysolus (271940)
8. Kolon Industries (120110)
9. Korean Air (003490)
10. Doosan Bobcat (241560)

Factors Driving Stock Price Upside

• Supply Chain Reshoring and Increased Domestic Production
  • Introduction of U.S. tariffs on Vietnam may raise operation rates at Korean manufacturing sites and stimulate the domestic market. For global conglomerates such as Samsung Electronics and LG Electronics, supply chain diversification might have a positive effect.
• Export Diversification Beyond the U.S.
  • Apparel and textile firms like Hansae and Hyosung TNC may offset external risks through accelerated export diversification to Southeast Asia or Latin America beyond Vietnam.
• Benefit for Domestic Parts and Materials Industries
  • As Vietnamese finished goods production declines, demand for domestic parts/materials may rise with the relocation of supply chains. Stocks like Iljin Hysolus and Kolon Industries could benefit.
• Strengthening Logistics and Air Transport Services
  • Increased logistics complexity from tariff circumvention—such as direct exports or trans-shipment—may benefit large logistics and air transport firms like Korean Air.

Factors Contributing to Stock Price Downside

• Rising Manufacturing Costs and Margin Pressure
  • For companies with local subsidiaries in Vietnam, tariffs may increase costs, squeezing operating margins and overall earnings (affecting Hyosung TNC, Hwaseung Enterprise, etc.).
• Export Decline and Shrinking U.S. Market
  • Lower price competitiveness from tariffs could reduce U.S.-bound exports, and clients may switch to competitors, applying downward pressure on stock prices.
• Short-term Shock from Supply Chain Disruptions
  • Before stabilization, costs of facility relocations and new investments may increase short-term earnings volatility.
• KRW Exchange Rate Volatility and Global Economic Uncertainty
  • Macro variables, such as FX rates and financial market volatility, may add further pressure to share prices during periods of external instability.

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Technical Analysis & Future Trading Value

• Samsung Electronics, LG Electronics
  • Both recently recovered their 60/120-day moving averages and entered a consolidation phase. Sensitive to global IT supply chain shifts, short-term volatility is expected depending on tariff clarity and alternative sourcing.
• Hyosung TNC, Hansae, LF
  • Textile and apparel stocks with high U.S. exposure have already experienced drops from tariff concerns, but with diversified results and alternative market exports, bottom-fishing may be justified.
• Hwaseung Enterprise, Kolon Industries, Iljin Hysolus
  • As global component/material stocks, they’re resilient to downside risk, and medium- to long-term growth momentum exists with in-house production and green initiatives (hydrogen, lightweighting).
• Korean Air, Doosan Bobcat
  • Future growth may receive a boost from logistics/air service capability and expanded manufacturing presence in North America, making them attractive for both short-term rebounds and long-term investment.
• Technically, responsive strategies are needed in volatile zones (RSI 60~70, MACD golden cross, coupled trading volume surges).

Investment Outlook & Considerations

• Monitor Corporate Supply Chain Strategy Shifts
  • If tariff risk continues long-term, it is important to review expanded domestic production, diversified supply chains, and ventures into new global markets.
• Redistribution of Production Bases Across Southeast Asia
  • Evaluate companies’ optimization of production bases and logistics, and how expanded global partnerships affect their earnings outlook.
• Monitor Macro Variables: Exchange Rate, Raw Materials, Policy, Etc.
  • In the face of financial market uncertainty, real-time monitoring of FX rates, labor costs, and local policies is crucial.
• Investment Strategy
  • For stable returns, focus more on long-term market dominance, core technical competencies, and solid profit-generation capability, rather than short-term theme-driven volatility.

Conclusion

While U.S. tariff risks on Vietnam may deliver a short-term shock to Korean manufacturing and export companies, they will likely serve as a catalyst for long-term growth through global supply chain restructuring, strengthened domestic industry, and new market entry. During a period of market correction, screening for companies based on earnings, supply chain strategy, global response capability, and financial soundness is recommended, alongside selective diversification and rebalancing. Be agile in response to policy shifts, corporate strategies, and global trade environment changes, and make wise investment decisions.