The Ministry of Industry and Trade issues an 'urgent' recommendation amid escalating U.S. - Israel and Iran conflict

The Ministry of Industry and Trade has issued a document sent to import-export industry associations and logistics associations, providing recommendations to mitigate the impact of the conflict between the US, Israel, Iran, and the Middle East region.

According to the Ministry of Industry and Trade, since February 28, 2026, the US and Israel have conducted a large-scale military airstrike targeting Iran, marking a serious escalation of tensions in the Middle East region. Within 24-48 hours after the airstrike, all parties announced they were prepared for a multi-day war scenario. The military attacks and counterattacks have caused severe instability, creating a high-risk environment for international transport, trade activities, and the global supply chain.

It is forecasted that prices of consumer goods, fuel, and global oil will fluctuate with an upward trend in the coming time, causing indirect and multi-dimensional negative impacts on Vietnam's production and import-export activities in general, as well as on the Middle East region in particular.

For logistics services, rising fuel prices will push up sea freight and air cargo rates, while also affecting cargo transport routes for countries in the Gulf region. Many countries in the Middle East have restricted or closed their airspace due to military security, leading to cargo and freight flights being rerouted, increasing flight times, and causing higher effective logistics costs.

Transport through the Strait of Hormuz has nearly come to a standstill following the US and Israeli airstrikes on Iran. Iran has warned ships that passage through Hormuz is currently unsafe, forcing shipping lines to stay away from the conflict zone or change routes, significantly increasing transport time and fuel costs.

In light of the above situation, the Import-Export Department requests import-export industry associations and logistics associations to closely monitor developments, promptly update information to businesses to proactively plan production, import-export, and transport, limit congestion and damage, and contribute to improving the flexibility and resilience of Vietnamese businesses to fluctuations in the international business environment.

Accordingly, the agency recommends that businesses diversify supply sources and alternative markets; pay attention to logistics, insurance, and force majeure clauses in contracts; purchase adequate insurance for goods to prevent risks and reduce losses in case of incidents in the import market.

Businesses need to strengthen coordination and data exchange with ministries and sectors regarding geopolitical situations, transport, and freight rates to develop timely response plans; proactively develop prevention and adaptation plans to minimize risks, hazards, and losses from incidents in international trade and transport and related issues, preparing timely response plans to limit impacts on the supply chain.

Businesses are also encouraged to regularly work with units under the Ministry of Industry and Trade such as the Import-Export Department, the Trade Promotion Agency, the Foreign Market Development Department, and Vietnam's Trade Offices and Trade Office Branches abroad to seek new orders and new potential markets, thereby developing alternative plans or prioritizing exploitation to maximize opportunities.

Units under the Ministry of Industry and Trade will closely monitor and promptly update information on developments in the Middle East region to exchange with associations, and research to enhance cooperation with international organizations to proactively respond to similar situations in the future.