How is Vietnam affected by escalating tensions in the Middle East?

The Strait of Hormuz is one of the world's important shipping chokepoints. Around 20 percent of global oil and gas flows through it and Iran's parliament has approved a motion to close the Strait of Hormuz.

Nunzio De Filippis, co-CEO of the U.S.-based logistics firm CargoTrans, told Tuoi Tre (Youth) newspaper that global shipping companies are closely monitoring developments in the Middle East.

Recent U.S. strikes on three of Iran's nuclear facilities may force many vessels to reroute around the Cape of Good Hope to avoid both the Strait of Hormuz and the Suez Canal.

Filippis warned that further escalation in the Middle East will likely drive up shipping and insurance costs and cause longer delivery times.

In response, logistics and supply chain managers in the U.S. may increase inventory stockpiling, as they did during previous waves of tariff hikes.

Vietnam, too, will feel the impact. 

Rising fuel and shipping costs, coupled with longer delivery times, will place significant pressure on exporters, who may be forced to accelerate production schedules.

“But that’s a tough task, as most factories are already operating at full capacity to meet deadlines ahead of upcoming tariff increases,” Filippis said.

He added that the current volatility underscores Vietnam’s economic vulnerability due to its heavy reliance on exports.

He emphasized the urgent need to strengthen domestic consumption as a buffer against global instability.