Valuetronics’ “Vietnam manufacturing base not only serves as tariff diversification, but also captures new orders from global customers seeking a reliable, cost-competitive alternative to China,” they write, noting that the company’s newly expanded capacity in Vietnam could help boost output by around 30%.
UOB Kay Hian analysts maintain their “buy call” and $1.03 target price for Valuetronics. According to analysts John Cheong and Heidi Mo, the company will see improved order flows and new customers amid easing trade tensions between the US and Vietnam, the latter of which is where Valuetronics’ main manufacturing plant is sited.
The analysts say the reduction of US tariffs on Vietnam to 20% in July 2025, from 46% in April 2025, should support the company’s order recovery. The reduced tariffs rates will enhance Vietnam’s competitiveness as a manufacturing base when compared to other Asean economies like Indonesia, Malaysia, and Thailand, whose tariff rates range between 19% to 20%.
