Vietnamese businesses seek export opportunities amid Middle East conflict

Although escalating conflicts in the Middle East are pushing up transportation costs due to rising oil, gas and gold prices, many Vietnamese exporters are still trying to find opportunities amid global supply disruptions.

Many export businesses take advantage of opportunities from the soaring demand for goods in many countries - Photo: TAN LUC

Mr. Nguyen Dinh Tung - Vice President of the Vietnam Fruit and Vegetable Association, General Director of Vina T&T Group - said that the company only exports a small amount to the Middle East, mainly to the UAE, Oman, and Saudi Arabia, which are not located in war zones, so export activities remain stable. Fruit orders to the US and the European Union have not been affected.

Meanwhile, Mr. Nguyen Tuan Viet - Director of VIETGO Company - also commented that the biggest impact at present is the increase in transportation costs due to instability in key routes such as the Suez Canal and the Strait of Hormuz. Instead of increasing freight rates during the peak season at the end of the year as usual, this year the freight rates will increase earlier.

However, Mr. Viet also sees many new opportunities when the supply chain is broken. The demand for stockpiling essential goods has increased sharply, especially from large importers such as India, which accounts for a large market share in trade activities in the Middle East. As soon as the war broke out, some Indian partners contacted Vietnam to find supplies.

"Although export turnover to the Middle East is still modest, with the advantages of trade agreements, not too high market standards and short transportation distance, many potential Vietnamese products such as charcoal, cashew nuts, pepper, tea, dried and fresh fruits, seafood, electronic equipment... are taking advantage of the opportunity," said Mr. Viet.

According to a survey by VIETGO, despite concerns, businesses still maintain stable trading activities and orders are not interrupted.

Learning from the experience of the Russia-Ukraine war, when the demand for sawdust pellets skyrocketed, making Vietnam the second country in the world in this product, Mr. Viet hopes that Vietnamese businesses will take advantage of the opportunity, expand the export of essential goods and serve post-war reconstruction.

Businesses need to diversify export sources

The Ministry of Industry and Trade forecasts that the prices of consumer goods, fuel, and oil will fluctuate in an upward direction, causing negative and multi-dimensional impacts on production and exports. For logistics services, the increase in fuel prices will cause the cost of sea transport and freight transport to continue to increase, especially routes to Arab countries. Some shipping companies have increased insurance surcharges for ships passing through the Persian Gulf and the Arabian Sea.

The Ministry recommends that businesses need to diversify their supply sources and seek alternative markets when exporting to markets in the Middle East is facing difficulties.

When negotiating and signing sales contracts, it is necessary to pay attention to logistics, transportation, delivery and insurance terms to avoid risks; proactively analyze geopolitical fluctuations to have response plans, have plans to prevent and reduce risks and losses, and discuss with state agencies to get support to connect orders and new markets...

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Source: https://tuoitre.vn/doanh-nghiep-viet-tim-co-hoi-xuat-khau-giua-xung-dot-trung-dong-20250625081253344.htm