Korean firms reassess production strategies

The escalating tensions in the Middle East are no longer a localised issue.

- By Kim Nyoun Ho

They have become a direct risk factor for global supply chains.In particular, risks surrounding the Strait of Hormuz are simultaneously pushing up freight rates and oil prices, significantly disrupting cost structures for manufacturers that rely heavily on imported raw materials.

South Korean companies operating in Vietnam are also facing a triple burden of rising input costs, logistics delays, and increased currency volatility. In addition, weakening global demand driven by an economic slowdown is beginning to weigh on export volumes.

That said, amid heightened uncertainty, Vietnam's role as a relatively stable production base is becoming more pronounced. For some companies, the ongoing supply chain realignment is also creating new strategic opportunities.

The most immediate impact is being felt in logistics and manufacturing. Companies heavily reliant on maritime transport are facing a dual challenge of rising freight costs and extended lead times. Meanwhile, manufacturers are grappling with higher energy costs and unstable raw material supplies, which are increasingly disrupting production planning.

Industries closely tied to global supply chains, such as electronics, textiles, and chemicals, are particularly sensitive to these disruptions. The retail sector is also gradually feeling the impact through higher operating costs and weakening consumer demand.