Southeast Asia Information Port News (www.dnyxxg.com) March 2nd – Several Vietnamese companies reported that the conflict in the Middle East has led to increased logistics costs, marine insurance premiums, and raw material prices, forcing them to adjust their financial plans and recalculate their subsequent order management strategies.
Several companies and trade associations pointed out that to mitigate the risks of shortages and delayed deliveries, companies have begun increasing raw material reserves, directly resulting in higher working capital requirements. Dang Phuc Nguyen, Secretary General of the Vietnam Fruit and Vegetable Association, analyzed that the need for ships to adjust routes around the Red Sea has extended transportation times by several days, leading to a simultaneous increase in refrigerated container costs and insurance premiums. The Textile, Timber, and Food Industry Associations also stated that they are closely monitoring shipping costs and marine insurance premiums; if transportation costs remain high, the price advantage of Vietnamese products will be weakened.
On the afternoon of March 2nd, the Import and Export Department of the Ministry of Industry and Trade of Vietnam issued a risk warning regarding import and export business in the Middle East, advising associations and companies to closely monitor the situation and proactively adjust their production and import/export plans.
The bureau reminded Vietnamese enterprises to diversify their supply channels and markets, focusing on reviewing logistics, insurance, and force majeure clauses in contracts; updating freight and surcharge information promptly; and developing risk prevention plans. They should also strengthen communication with agencies under the Ministry of Industry and Trade and Vietnamese overseas business systems to actively explore alternative markets.
On the same day, several tourism companies in Ho Chi Minh City announced the suspension of tours to some Middle Eastern countries and the initiation of emergency procedures for itineraries to the Middle East (including those transiting through Dubai).
According to the companies, the Middle East is a popular outbound destination for Vietnamese tourists, with the "Dubai-Abu Dhabi-Egypt" route being particularly popular. Due to the tense situation, tourists have been requesting trip postponements or refunds, placing tourism companies under dual pressure to ensure tourist safety, handle additional costs, and fulfill contractual obligations. (End)
