Taiwanese Businesses in Vietnam: War Drives Up Freight Costs, Orders Temporarily Increase for Inventory Hoarding
According to Taiwanese business circles in Vietnam, while the war in the Middle East has significantly increased shipping costs, orders have temporarily surged due to efforts to secure inventory. Meanwhile, Vietnam's General Statistics Office announced that the Consumer Price Index in March rose by 1.23% month-on-month.
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- 📰 Published: April 6, 2026 at 20:35
- 🔍 Collected: April 6, 2026 at 23:28 (2h 53m after Published)
- 🤖 AI Analyzed: April 7, 2026 at 00:23 (55 min after Collected)
Vietnam's General Statistics Office of the Ministry of Finance announced on April 4 that the Consumer Price Index (CPI) in Vietnam for March rose by 1.23% month-on-month, influenced by soaring global fuel costs and rising construction material prices.
The March index also saw a year-on-year increase of 4.65%, marking the highest recorded increase for the same month in five years.
Price pressures have expanded, with transportation prices seeing the largest increase. Due to supply disruptions caused by the Middle East conflict, domestic gasoline prices in Vietnam surged by 29.72%, diesel prices by 57.03%, and air passenger fares by 23.19%.
Founded in 1992, Weixin Printing and Packaging Industrial Co., Ltd. has been deeply rooted in Ho Chi Minh City for over 30 years and has Taiwanese capital background. It produces cartons and paper boxes for major international clients such as Heineken, Coca-Cola, and Budweiser.
General Manager Shen Hsien-yu stated in an interview with CNA on April 6 that the Middle East conflict has indeed impacted the manufacturing industry. He mentioned that the biggest impact is the increase in freight costs, which have risen significantly since March. Among these, fuel prices increased by 125%, more than double the original price.
Secondly, packaging costs, especially for petrochemical products like plastics, have nearly doubled, and sometimes supplies are even difficult to obtain. Currently, the US-Iran conflict has led to an overall cost increase of about 10%.
Shen Hsien-yu is also a board member of the Taipei School in Ho Chi Minh City and the convener for the school building expansion project. He confirmed that construction material costs, such as rebar and cement, have also risen by 10% to 15%. The school building contractor even temporarily suspended its quotation for the second phase due to an inability to confirm the status of upstream raw materials.
Shen Hsien-yu, also the honorary president of the Federation of Taiwanese Chambers of Commerce in Vietnam, pointed out that generally, manufacturing industries hold inventory. Out of a commitment to integrity, they would not suddenly raise prices for long-term cooperative clients to avoid damaging credibility. "Currently, the company's product prices have not increased; we are still absorbing the rising costs ourselves."
For his company, orders have not decreased but rather increased. "Currently, customers are placing orders faster than before, and our orders are full, about 30% more than in previous years, because customers are also rushing to secure inventory and want to order our stock first."
The biggest impact is the uncertainty about the future. "Some customers know that prices are about to rise, leading to a bit of a tug-of-war. Everyone is waiting and watching, hoping that the situation in the Middle East can ease by late April or early May, and petrochemical products can gradually return to normal."
Additionally, the recovery period for the supply of some individual products might be longer. Taking aluminum plates needed for printing as an example, Qatar originally accounted for 20% of the global aluminum supply. Currently, due to shelling, it might take 2 to 3 years to recover.
Businesses are also observing whether the extent of domestic inflation in Vietnam will lead to a decrease in consumption, thereby affecting a reduction in orders. However, Shen Hsien-yu stated that late April and early May coincide with Vietnamese holidays, and orders for all consumer products are increasing. At this stage, inflation has not yet squeezed the wallets of Vietnamese citizens.
He pointed out that Vietnam, unlike some other countries, has not experienced public or vendor panic over fuel shortages, as the state subsidizes fuel costs. "Currently, market consumption largely remains normal, and the government has also introduced policies. Although oil relies on imports, it is being purchased through different channels, and at the same time, price gouging is being prevented, which is a very effective response."
Regarding future development, Shen Hsien-yu is relatively optimistic. He noted that if companies and factories have been rooted in Vietnam for a long time, costs are relatively low, and fluctuations are also relatively small. "I hope this crisis is short-term and will end as soon as possible. Companies with sound foundations should be able to weather it without problems."
A survey released on April 3 by international credit rating agency S&P Global also indicated that the Middle East war led to a significant increase in manufacturing input costs in March, with sales prices rising at the fastest pace in nearly 15 years. The key is the impact of the Middle East war on inflation, with rising oil prices leading to higher freight, fuel, and transportation costs.
The survey showed that Vietnam's Manufacturing Purchasing Managers' Index (PMI) in March remained above the 50-point mark, which separates growth from contraction, but it fell from 54.3 in February to 51.2, the smallest growth rate since September last year.
Nevertheless, the survey still indicated that companies generally predict an increase in output over the next year, anticipating strong underlying demand to support new orders and production growth. (Edited by Hsieh Yi-hsuan) 1150406
The March index also saw a year-on-year increase of 4.65%, marking the highest recorded increase for the same month in five years.
Price pressures have expanded, with transportation prices seeing the largest increase. Due to supply disruptions caused by the Middle East conflict, domestic gasoline prices in Vietnam surged by 29.72%, diesel prices by 57.03%, and air passenger fares by 23.19%.
Founded in 1992, Weixin Printing and Packaging Industrial Co., Ltd. has been deeply rooted in Ho Chi Minh City for over 30 years and has Taiwanese capital background. It produces cartons and paper boxes for major international clients such as Heineken, Coca-Cola, and Budweiser.
General Manager Shen Hsien-yu stated in an interview with CNA on April 6 that the Middle East conflict has indeed impacted the manufacturing industry. He mentioned that the biggest impact is the increase in freight costs, which have risen significantly since March. Among these, fuel prices increased by 125%, more than double the original price.
Secondly, packaging costs, especially for petrochemical products like plastics, have nearly doubled, and sometimes supplies are even difficult to obtain. Currently, the US-Iran conflict has led to an overall cost increase of about 10%.
Shen Hsien-yu is also a board member of the Taipei School in Ho Chi Minh City and the convener for the school building expansion project. He confirmed that construction material costs, such as rebar and cement, have also risen by 10% to 15%. The school building contractor even temporarily suspended its quotation for the second phase due to an inability to confirm the status of upstream raw materials.
Shen Hsien-yu, also the honorary president of the Federation of Taiwanese Chambers of Commerce in Vietnam, pointed out that generally, manufacturing industries hold inventory. Out of a commitment to integrity, they would not suddenly raise prices for long-term cooperative clients to avoid damaging credibility. "Currently, the company's product prices have not increased; we are still absorbing the rising costs ourselves."
For his company, orders have not decreased but rather increased. "Currently, customers are placing orders faster than before, and our orders are full, about 30% more than in previous years, because customers are also rushing to secure inventory and want to order our stock first."
The biggest impact is the uncertainty about the future. "Some customers know that prices are about to rise, leading to a bit of a tug-of-war. Everyone is waiting and watching, hoping that the situation in the Middle East can ease by late April or early May, and petrochemical products can gradually return to normal."
Additionally, the recovery period for the supply of some individual products might be longer. Taking aluminum plates needed for printing as an example, Qatar originally accounted for 20% of the global aluminum supply. Currently, due to shelling, it might take 2 to 3 years to recover.
Businesses are also observing whether the extent of domestic inflation in Vietnam will lead to a decrease in consumption, thereby affecting a reduction in orders. However, Shen Hsien-yu stated that late April and early May coincide with Vietnamese holidays, and orders for all consumer products are increasing. At this stage, inflation has not yet squeezed the wallets of Vietnamese citizens.
He pointed out that Vietnam, unlike some other countries, has not experienced public or vendor panic over fuel shortages, as the state subsidizes fuel costs. "Currently, market consumption largely remains normal, and the government has also introduced policies. Although oil relies on imports, it is being purchased through different channels, and at the same time, price gouging is being prevented, which is a very effective response."
Regarding future development, Shen Hsien-yu is relatively optimistic. He noted that if companies and factories have been rooted in Vietnam for a long time, costs are relatively low, and fluctuations are also relatively small. "I hope this crisis is short-term and will end as soon as possible. Companies with sound foundations should be able to weather it without problems."
A survey released on April 3 by international credit rating agency S&P Global also indicated that the Middle East war led to a significant increase in manufacturing input costs in March, with sales prices rising at the fastest pace in nearly 15 years. The key is the impact of the Middle East war on inflation, with rising oil prices leading to higher freight, fuel, and transportation costs.
The survey showed that Vietnam's Manufacturing Purchasing Managers' Index (PMI) in March remained above the 50-point mark, which separates growth from contraction, but it fell from 54.3 in February to 51.2, the smallest growth rate since September last year.
Nevertheless, the survey still indicated that companies generally predict an increase in output over the next year, anticipating strong underlying demand to support new orders and production growth. (Edited by Hsieh Yi-hsuan) 1150406