Vietnamese exporters are facing mounting pressure as soaring global oil prices and prolonged shipping disruptions linked to escalating Middle East conflicts push logistics costs higher, threatening the country’s export growth.
The Ministry of Industry and Trade raised domestic fuel prices last week, with kerosene climbing up to VND7,132 ($0.27) per liter and gasoline surging by VND2,189 ($0.08) per liter. Industry experts warn that transport costs could rise further as fuel supplies tighten and shipping routes are rerouted to avoid conflict zones.
“Transport accounts for a large portion of our logistics services, so price adjustments may be unavoidable,” said Nguyen Van Thinh, director of ALP Logistics in Hai Phong. Shipping bookings to Middle Eastern markets have slowed, while alternative routes through the Cape of Good Hope and the Panama Canal add up to 20 days in transit and higher freight rates.
Exporters of agricultural and food products are particularly exposed. Nguyen Dinh Tung, vice-chairman of the Vietnam Fruit and Vegetable Association, noted overseas buyers are increasingly hesitant to sign long-term contracts due to rising logistics costs and potential delivery delays.
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Textile and garment companies are also bracing for impacts as consumer spending in Europe and the United States may slow amid geopolitical uncertainty. Le Tien Truong, chairman of Vinatex, said firms are renegotiating delivery schedules, insurance coverage, and production timelines to mitigate losses.
To reduce risk, Vietnamese exporters are diversifying markets toward ASEAN nations, China, Japan, and South Korea, while investing in deep processing technologies to extend product shelf life. Industry representatives are also urging authorities to monitor surcharges and prevent excessive fees by shipping lines.
The Middle East conflict intensified after U.S. and Israeli air strikes on Iran, with Tehran responding by closing the Strait of Hormuz and targeting regional U.S. bases. The strategically vital waterway, which handles about a fifth of global oil consumption, remains a critical choke point affecting global supply chains.
With global fuel volatility and longer shipping routes, Vietnamese exporters face a challenging environment in maintaining competitiveness and securing overseas orders.
