Vietnam prepares strategic response to economic fallout from Middle East conflict

Delegates emphasized that the escalating tensions between Iran and Israel, combined with U.S. military action in the region, have triggered global repercussions, including rising oil and energy prices, disruptions in supply chains and transportation, and increased inflationary pressure.

Although Vietnam’s direct economic ties with the Middle East remain insignificant, indirect effects on exports, imports, transportation, and logistics are already evident.

PM Chinh urged ministries, local authorities, businesses, and citizens to stay calm, make all necessary preparations, and review past experiences to navigate rapidly changing, unpredictable global challenges.

Ministries and agencies were instructed to closely monitor developments and take appropriate actions within their authority promptly.

At the same time, PM Chinh highlighted this as an opportunity for Vietnam to restructure its economy toward a more sustainable model by diversifying markets, products, and supply chains.

He urged improving the investment and business environment to attract foreign direct investment, expanding markets by leveraging existing free trade agreements, and accelerating negotiations.

Streamlining customs procedures and administrative formalities to reduce burdens on businesses was identified as a key priority.

Relevant agencies were also urged to speed up ongoing tariff negotiations with the U.S. to secure mutually beneficial trade agreements.

Domestically, it is essential to promote consumption, combat smuggling and counterfeit goods, and prioritize Vietnamese goods, Chinh said.

He added that the government has been committed to sustaining support measures such as tax and fee exemptions, deferrals, and reductions for both people and businesses.

The Ministry of Industry and Trade is tasked with controlling market conditions and prices, ensuring the smooth supply of essential goods—particularly food, fuel, and electricity.

PM Chinh also directed authorities to strengthen revenue collection, eliminate unnecessary spending, and expedite disbursement of public investment, especially in strategic infrastructure projects.