Vietnam mining stocks rally amid global trade tension

Shares of Vietnam’s mining companies have rallied since early this month, fueled by heightened global trade tensions following the start of Donald Trump’s second term as the U.S. president.

Binh Dinh Minerals JSC (HoSE: BMC) rose to VND29,150 ($1.15) per share as of the end of Friday, after hovering around VND20,000-22,000 on February 3, the first working day after the nine-day Lunar New Year holiday.

Ha Giang Mineral and Mechanics JSC (HNX: HGM) saw its shares jump nearly VND150,000 ($5.90) in two weeks, reaching VND358,400 ($14.12) at Friday’s close.

Masan High-Tech Materials Corporation (UPCoM: MSR) shares nearly doubled from early this month, reaching VND19,700 ($0.78) per share.

Bac Kan Minerals JSC (HNX: BKC) skyrocketed 3.67 times to VND52,900 ($2.01) per share by the end of Friday.

Notably, Vinacomin-Minerals Holding Corporation (HNX: KSV) recorded a six-fold increase in share price, reaching VND282,000 ($11.11) since late November last year.

Mining stocks have surged amid an escalating global trade war between the U.S., neighboring countries and China following Donald Trump’s return to the White House.

On December 3, 2024, China’s Ministry of Commerce announced a ban on the export of key metals, including gallium, germanium, and antimony. These metals are critical for semiconductor production, renewable energy, and military equipment. The decision was in retaliation for U.S. export restrictions imposed on Beijing on December 2, 2024.

However, the recent rally in mining stocks does not necessarily reflect the financial performance of these companies.

While KSV, HGM, and BKC posted strong profits in 2024, benefiting from rising metal prices, MSR reported losses of VND1.6 trillion ($63 million) last year, bringing its two-year cumulative losses to VND3.2 trillion ($126 million).

Also, Fecon Mining's (HoSE: FCM) 2024 net profit plunged to VND1.5 billion ($59,080), down from VND17 billion ($669,560) in 2023.