Investors from Singapore are strengthening resilience

The escalation in Middle East tensions has created a ripple effect that our member companies are already feeling across multiple regions.

- By Tan Quee Peng President, Singapore Chamber of Commerce in Vietnam

The disruption of key maritime chokepoints, especially the Strait of Hormuz, which carries nearly a quarter of global seaborne oil trade, has led to elevated energy prices, logistical uncertainties, and longer transit times for global shipping.

For members in Vietnam, these shocks translate into higher import costs, increased production expenses, and pressure on working capital.

The sudden suspension or diversion of shipping routes by major carriers has further complicated global operations. Reports indicate that many carriers have halted or rerouted vessels around the Cape of Good Hope, adding 7-15 days to transit time and raising freight and insurance costs significantly. These delays affect manufacturing schedules, retail inventories, and energy-dependent industries in Vietnam.

Even companies without direct exposure to the Middle East are being indirectly affected due to global price surges in oil, gas, fertilisers, and critical manufacturing inputs — pressures that quickly cascade into the Vietnamese economy.

Among our member companies, several sectors face heightened vulnerability. Logistics and transportation continue to bear the most immediate impact, driven by widespread carrier suspensions around the Strait of Hormuz and the Red Sea. The withdrawal of insurance coverage and increased security risks have rendered several routes commercially unviable, resulting in ships being rerouted or delayed for prolonged periods.