Amid rising transportation costs and supply chain risks caused by escalating tensions in the Middle East, Ho Chi Minh City is implementing a range of measures to support businesses and stabilize import–export activities.

The U.S.–Iran conflict has heightened global geopolitical risks, directly affecting energy markets, international maritime transport, and global supply chains. These developments have in turn impacted import–export operations, logistics activities, and production costs for businesses operating in Ho Chi Minh City.

This information was shared by Nguyen Le Thien Thanh, Deputy Head of the International Economics Division under the Ho Chi Minh City Department of Industry and Trade, during a socio-economic press briefing held on March 5.

According to the department’s assessment, tensions in the Middle East, particularly the closure of the Strait of Hormuz, have disrupted cargo flows through the Arabian Sea. As a result, shipping traffic through the area has declined significantly, forcing many major shipping lines to suspend services or reroute transport routes.

The rerouting of maritime transport is expected to extend shipping times on the Ho Chi Minh City–Europe route by approximately seven to ten days. At the same time, shipping costs have increased sharply due to additional conflict-related surcharges and higher maritime insurance premiums.

These factors have significantly increased international logistics costs, directly reducing profit margins and weakening the competitiveness of import–export enterprises.

Thanh noted that the United States currently remains the city’s largest export market, with export turnover reaching approximately USD 21.7 billion last year, accounting for 23.42% of Ho Chi Minh City’s total export value.

Key export sectors such as electronics, computers and components, textiles and garments, footwear, wood and wood products, along with several agricultural, forestry, and seafood products, are expected to be affected by rising logistics costs and potential supply chain disruptions.

In response, the Ho Chi Minh City Department of Industry and Trade has implemented several measures to support businesses. These include accelerating administrative reform to ensure faster processing of administrative procedures for enterprises.

The department is also strengthening guidance for businesses on effectively utilizing free trade agreements (FTAs) to optimize tariff advantages, reduce costs, and enhance competitiveness.

In addition, the department is coordinating with the Ho Chi Minh City Logistics and Port Association to organize forums connecting logistics service providers with manufacturing and exporting enterprises. These initiatives aim to identify solutions for reducing logistics costs and to promote trade activities toward markets less affected by the conflict, such as ASEAN countries, China, and Australia.

The Department of Industry and Trade will continue to closely monitor developments and provide timely policy recommendations to maintain stable production, import–export operations, and business support within the city.

Source: Bao Dau tu Chung khoan