Mitigating supply chain risks amid Middle East conflicts

The geopolitical situation in the Middle East has escalated sharply, directly impacting international trade for Vietnamese enterprises. THE LAM LAW LLC – Your legal need, Our Mission would like to provide this critical highlights based on Official Dispatch No. 229/XNK-TLH issued by the Agency of Foreign Trade (Ministry of Industry and Trade) on March 2, 2026.

🔴 SITUATION OVERVIEW
Since February 28, 2026, large-scale military airstrikes by the US and Israel targeting Iran have marked a serious escalation in regional tensions. This has led to:

▪️ Stagnant Transportation: Operations through the Strait of Hormuz are nearly at a standstill.

▪️ Airspace Restrictions: Many Middle Eastern countries have restricted or closed their airspace, forcing cargo flights to reroute, which extends transit times and increases costs.

▪️ Surging Costs: Global oil and fuel prices are forecasted to rise, driving up sea and air freight rates.

▪️ Safety Warnings: Iran has warned that passage through Hormuz is currently unsafe, forcing shipping lines to avoid the conflict zone.

🛡️ LEGAL & STRATEGIC RECOMMENDATIONS
To protect your business interests, THE LAM LAW highlights five key actions recommended by the authorities:

🔹 Review Foreign Trade Contracts: Pay close attention to clauses regarding logistics, delivery, and Force Majeure to ensure compensation and cost-sharing mechanisms are in place if cargo encounters risks.

🔹 Comprehensive Insurance: Ensure full insurance coverage for goods to prevent and reduce losses arising from incidents in import markets.

🔹 Diversify Supply & Demand: Actively seek alternative suppliers and markets to reduce dependency on Israel, Iran, and the broader Middle East.

🔹 Proactive Risk Planning: Build contingency plans for international trade and transport to minimize potential disruptions to the supply chain.

🔹 Maintain Government Coordination: Regularly exchange information with the Agency of Foreign Trade, Trade Offices, and Vietnamese Trade Counselor branches abroad to stay updated and explore new market opportunities.

THE LAM LAW LLC – Your legal need, Our Mission remains committed to monitoring these developments to provide timely legal guidance for our clients navigating the global business environment.

📥 Contact us today for a legal audit of your shipping contracts and risk management strategies.

Link PDF: Official Dispatch No. 229/XNK-TLH


Should you have any legal inquiries, please contact our Lawyers & Associates:

THE LAM LAW LLC
🏢Indochina Park Tower, # 4 Nguyen Dinh Chieu Str, Tan Dinh Ward, Ho Chi Minh City.
📞Tel: +84 (0)28 710 58 222 – 6288 3798 – Hotline: +84 (0) 973 097 777
Email: info@thelamlawllc.com

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