Middle East Conflict Increases Logistics Costs, Ministry of Agriculture Proposes Support for Rubber and Agricultural Exporters

The escalating conflict in the Middle East is generating widespread effects on the global economy, particularly in the export of raw materials such as rubber. Surging oil and gas prices are making logistics costs for shipments from Vietnam more expensive, directly impacting the profitability of rubber companies like Dang Quang Rubber.

According to European experts, even if the conflict ends soon, energy prices will be slow to decline due to disrupted supply and demand factors. In Vietnam, the Ministry of Agriculture and Rural Development has proposed urgent support measures, including debt deferral for agricultural exporters and expanding new markets to reduce reliance on affected shipping routes.

These initiatives aim to sustain the growth of rubber exports, a key commodity in Vietnam's agricultural sector. With the goal of maintaining double-digit growth, the government is prioritizing industries with growth potential to counter geopolitical volatility.

Reference: VnExpress