The Ministry of Construction has proposed a series of measures to stabilise transport operations and logistics costs as conflict in the Middle East disrupts global aviation and shipping routes.
In a report submitted to the government on March 16, the ministry warned that rising fuel prices and rerouted flights are increasing operating costs for transport companies and putting pressure on supply chains.
Fuel accounts for around 35-40 per cent of airline operating costs. Airspace restrictions in parts of the Middle East have forced carriers to take longer routes, raising fuel consumption as well as insurance and operational expenses.
Operating costs at Vietnam Airlines have risen by about 50-60 per cent, while Sun Phu Quoc Airways reported an increase of roughly 30 per cent. Vietjet Air has also incurred additional costs of around VND 2 trillion (about USD 78 million) per month.
Aviation fuel prices have climbed, with Jet A-1 in Singapore trading at around USD 160 per barrel and potentially reaching USD 170 by month-end. According to the International Air Transport Association, if prices rise to USD 200 per barrel, airline operating costs could increase by more than 70 per cent.
The maritime sector has also been affected. The ministry said 15 vessels owned by Vietnamese companies are currently operating in the region, including eight flying the Vietnamese flag. While some have resumed operations, others remain anchored awaiting instructions, though all vessels and crews are reported safe.
Global freight rates have risen sharply. The Drewry World Container Index increased by about 10 per cent week on week and 12-15 per cent compared with pre-conflict levels, reaching around USD 2,300-2,500 per 40-foot container. Rates on the Asia-Europe route have surged by more than 20 per cent, while Asia-Mediterranean routes have risen by about 10 per cent, with additional war risk and fuel surcharges applied by some carriers.
Fuel accounts for roughly 30-40 per cent of maritime operating costs. A 20 per cent rise in fuel prices could push sea freight rates up by about 15 per cent, while inland waterway transport costs may increase by around 18 per cent.
Domestically, road transport costs have risen alongside fuel prices, which have increased by 20-30 per cent. Rail fares have also edged up, with passenger tickets rising by 3 per cent and freight charges by 4 per cent, although prices eased slightly after March 13 following a drop in diesel costs.
Proposed tax and fee cuts
To ease pressure on transport firms, the ministry has proposed several fiscal measures.
It recommended that the Ministry of Finance consider temporarily reducing special consumption tax and environmental protection tax on fuel.
The ministry also proposed cutting aviation landing and take-off fees and air navigation service charges by 50 per cent, as well as reducing or exempting port entry and exit fees for inland waterway transport.
Another proposal is to include transport fuel in the list of goods eligible for a reduction in value-added tax from the current 10 per cent to a lower rate.
In addition, the Ministry of Industry and Trade has been urged to direct refineries and gas processors to diversify supply sources to maintain output, while fuel distributors should prioritise supply for transport and key industrial sectors if shortages arise.
The ministry said it would continue working with relevant agencies to monitor developments and support transport enterprises in maintaining stable logistics operations amid global uncertainty.