The incident, shared by Le Chau Thai Vu, Vice Chairman of the Vietnam Agri-Entrepreneurs Club, at a conference on Halal market strategy on April 3, reflects mounting concerns among businesses exporting to the Gulf at a time of heightened geopolitical tension.

Shipping routes disrupted, costs surge

According to Truong Xuan Trung, Head of the Vietnam Trade Office in the United Arab Emirates, the disruption is not caused by buyers or sellers, but by shipping lines unwilling to enter the Persian Gulf.

Ports across the UAE remain operational, he said, but vessels are reluctant to approach, leaving cargo stranded or rerouted.

Even major retailers such as Lulu Group International have halted new maritime shipments, focusing instead on clearing existing cargo waiting in the Indian Ocean. To maintain supply of fresh goods, the company has resorted to chartering aircraft to transport products from India.

This shift comes at a steep cost. Broccoli, typically priced at 7-8 dirhams per kilogram in the UAE, has surged to around 25 dirhams (VND180,000, or about US$7) when flown in by air.

While Vietnamese exporters could consider air routes connecting Dubai and Abu Dhabi with Hanoi and Ho Chi Minh City, the high cost makes this option largely unviable for small and medium-sized enterprises.

An alternative route involves shipping goods to Oman and transporting them overland into the UAE and neighboring markets. However, this approach involves complex procedures and additional logistical hurdles.

Meanwhile, freight rates in the region have surged by nearly 500 percent, further straining exporters already grappling with uncertainty.

In this context, businesses on both sides are increasingly turning to contract renegotiations, particularly around delivery timelines, recognizing that the disruption stems from force majeure circumstances.

Emergency logistics strategies

Nguyen Minh Chanh, manager of Bee Logistics Corporation’s Can Tho office, outlined several strategies for exporters facing disrupted shipments.

If vessels are forced to turn back, logistics providers can work with shipping lines to share costs and negotiate reduced fees for returning cargo to Vietnam.

Another option is to sell goods at transshipment ports, where cargo is temporarily offloaded before continuing its journey. By negotiating directly with buyers at these locations, exporters can reduce losses associated with delays or returns.

In some cases, shipping lines themselves may assist in liquidating cargo, leveraging their networks to find potential buyers.

A more optimistic scenario involves identifying carriers still operating routes into the Middle East. In such cases, goods returned to ports like Ho Chi Minh City can be quickly reloaded and sent back out.

In fact, on March 26, at least one vessel successfully docked at ports in the region, offering a glimmer of possibility amid widespread disruption.

Long-term opportunity amid short-term disruption

Despite the immediate challenges, the Halal market continues to present significant long-term potential.

According to the Vietnam Trade Office in the UAE, the global Halal economy is currently valued at around US$5 trillion and is expected to double to US$10 trillion by 2028.

The Middle East remains a key market, accounting for approximately 62.5 percent of global demand, with a projected value of US$380 billion by 2030 and a consumer base of around 500 million Muslims.

Notably, the region relies on imports for 85-90 percent of its food supply, creating substantial opportunities for exporters able to navigate logistical barriers.

To tap into this market, Vietnamese businesses are advised to accelerate Halal certification processes, localize packaging with bilingual English-Arabic labeling, and expand their presence on e-commerce platforms, which account for over 80 percent of Halal consumer transactions in the region.

For now, however, the immediate challenge remains clear: navigating a supply chain increasingly shaped not just by demand, but by geopolitics.

Tran Chung