Vietnam’s stock benchmark is closing in on a record high, fueled by optimism over sweeping political reforms and clarity on a trade deal with the US.

Vietnam is a top destination for retailers and brands looking to reduce their reliance on factories in China, but has also become a target of Trump's aggressive trade policy.

The announcement came after President Trump in April proposed a steep 46% tariff on Vietnamese imports; he later paused those tariffs while talks continued.

Vietnam’s negotiators are still working on the terms of the tariff deal with their US counterparts, more than two weeks after it was first announced by US President Donald Trump.