HCMC – About 22.5% of 231 surveyed companies in export processing zones and industrial parks in HCMC have adjusted production plans as logistics costs rise and shipping routes change due to the escalation of military conflict in the Middle East, according to local authorities.
A survey by the HCMC Export Processing and Industrial Zones Authority (HEPZA) found that 52 companies had revised production plans to cope with higher fuel, logistics and raw material costs.
Another 27 companies, or 11.7% of respondents, reported delivery delays of more than 10 days as logistics costs rose, in some cases by over 30%, and transport routes were altered.
HEPZA noted that the impact on production and business operations has so far been limited in scale. However, supply chains for components, raw materials and export markets could face clearer pressure over the medium and long term.
Many companies import components and materials from the Middle East and Europe. Changes in shipping routes triggered by the near-total blockage of the Strait of Hormuz have forced vessels to detour around the Cape of Good Hope in South Africa, extending transit times by nearly a month and increasing shipping costs.
Among firms adjusting production plans, 25 are located in the former Binh Duong area, 14 in the former Ba Ria–Vung Tau area and 13 in the former HCMC area.
