Business executives and officials from the Vietnam Maritime Administration and the Ministry of Industry and Trade seek ways to respond to Red Sea tensions at a meeting in Hanoi on February 6, 2024. (Photo: VOV)

According to the Ministry of Industry and Trade, Vietnam earned 193 billion USD last year from exports to Europe and the US, 28.4% cent of its total export revenue.

Problems in the Red Sea, the main maritime route linking Asia with Europe and North America, are impacting Vietnam’s trade, particularly its shipping costs.

Do Thi Thuong of the Vietnam Maritime Administration said, “The cost of shipping cargo to Europe has more than doubled, increasing 120%. The cost of shipping to the US has increased 30-40%."

Tran Thanh Hai, Deputy Director of the Import-Export Department of the Ministry of Industry and Trade, said shipments arriving at ports 1-2 weeks later disrupts manufacturers' raw materials supply chains and delays goods production. The extended transit times has led to a shortage of empty containers, said Hai.

“We’ve recommended that shipowners and logistics associations closely monitor the situation and coordinate with shipping lines and Vietnamese state management agencies to offer the most favorable conditions for domestic importers and exporters to protect international trade activities,” said Hai.