The Ministry of Industry and Trade on March 2 urged associations and businesses operarating in the import-export and logistics sectors to take proactive measures amid escalating tensions in the Middle East that threaten to disrupt transport routes and drive up logistics costs.
The ministry advised businesses to diversify markets and sources of supply, while actively seeking alternative destinations with similar demand structures to minimise the potential impact of disruptions to exports to Israel, Iran and other Middle Eastern markets. Enterprises were also encouraged to develop long-term contingency plans.
During contract negotiations, firms were told to pay close attention to logistics, delivery and insurance clauses. Transport agreements should clearly define force majeure provisions, liability responsibilities and cost-sharing arrangements in the event of unforeseen risks. Adequate insurance coverage is essential to limit potential losses if incidents occur in import markets.
The ministry also called on associations and enterprises to maintain regular communication and coordinate with relevant ministries and agencies to analyse trade data and stay updated on geopolitical developments, freight rates, surcharges and transport costs. This would enable timely and coordinated response measures.
In addition, industry groups and businesses were instructed to establish preventive and adaptive strategies to mitigate risks in international trade and transportation, while preparing rapid response mechanisms to safeguard supply chains.
They were also encouraged to strengthen cooperation with State agencies to identify alternative orders and explore potential substitute markets.
The ministry warned that global prices for fuel, crude oil and consumer goods could rise in the near term, indirectly affecting Vietnam’s production, import-export activities and trade relations with partners in the region.
Higher fuel costs are expected to push up sea freight and air cargo rates, directly impacting shipping routes to the Gulf. Transport through the Strait of Hormuz has reportedly been severely disrupted following airstrikes targeting Iran, heightening concerns over supply chain stability.
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