Vietnam’s exports strained by US tariff talks, Middle East turmoil

These developments have triggered rising shipping costs and localized shortages of export containers.

At the ministry's second-quarter press conference on Thursday, Tran Thanh Hai, deputy director of the Import and Export Department, addressed key challenges facing Vietnam's trade activity. 

He said that although the U.S. had announced 46-percent retaliatory tariffs on Vietnamese imports starting April 2, their implementation was delayed by 90 days as of April 9. 

This delay gives Vietnam and other affected countries time to continue exports under the current tax regime.

Hai noted that in China's case, the U.S. had initially proposed tariffs as high as 145 percent. 

But after a bilateral agreement reached on May 12, the rate was brought down to 30 percent. 

This created a rush among exporters in China trying to ship goods before the new tariffs take effect, leading to a surge in cargo traffic.

The rush has caused bottlenecks in shipping routes and pushed up freight rates. 

According to Hai, sea transport costs have jumped, especially on routes from Asia to the U.S. West Coast. 

Rates for a 40-foot container that previously ranged between US$2,500 and $3,000 are now above $4,000, similar to what was seen during the height of the COVID-19 pandemic.

As a result, containers and ships have been concentrated in key ports across the region, causing temporary shortages in China, Vietnam, Indonesia, Thailand, and Malaysia. 

In Vietnam, container shortages are emerging in some areas but are not yet widespread. 

The Ministry of Industry and Trade, along with the Vietnam Maritime and Waterway Administration, reported that while difficulties exist, the situation is less severe than during the pandemic.

Compounding the problem, ongoing tensions in the Middle East—especially between Israel and Iran—have disrupted global shipping lanes. 

If commercial vessels are forced to reroute around the southern tip of Africa to avoid danger zones, shipping costs to Europe and the U.S. East Coast could rise even further.

To address these issues, the Import and Export Department is advising Vietnamese companies to stay up to date on global developments and maintain close communication with international partners. 

Businesses should be especially careful when signing transport and logistics contracts, Hai said, in order to protect themselves from potential losses caused by delays or conflict-related disruptions.

He also encouraged exporters to consider alternative transportation methods. One option is the intermodal rail route from Asia to Europe, which remains operational and may help offset delays and cost spikes in sea transport.

Government agencies are closely monitoring the logistics market and plan to offer updated guidance to help businesses navigate these risks.

On broader strategy, Hai said the 2021-30 export plan has shown strong results halfway through its timeline, including growth in trade volume, market diversification, and an expanding range of export products.

However, he acknowledged persistent structural issues, such as a large trade deficit with China, contrasted with high surpluses with the U.S. and the European Union. 

Moving forward, Vietnam will need to focus on achieving a more balanced and sustainable trade structure.

Deputy Minister Nguyen Sinh Nhat Tan added that a full mid-term review of the national export strategy is due every five years. 

The Import and Export Department has been assigned to conduct this review and will work with other agencies to propose any necessary adjustments.