"Textile and garment industry bombarded with challenges due to Middle East conflict", 8 April 2026

Despite the efforts of Vietnamese textile and garment businesses, the ongoing Middle East conflict is posing serious challenges to their ability to secure and carry out overseas production orders.

The Middle East conflict is hiking up the prices of fuel and subsequently production costs...

The blockade of the Red Sea forced cargo ships to divert around the Cape of Good Hope, extending delivery times by 14-20 days. This delay created significant difficulties for the fast fashion segment...

Phạm Văn Việt, board chairman of Việt Thắng Jean Co. Ltd., said that transportation costs had increased by up to US$5,000 per container, but his company was struggling with increasing their own prices due to limited demand.

Textile and garment businesses have been coping with this new market challenge, by splitting up their orders, limiting their good deliveries via air, and seeking out new markets. However, many are still having to rely on core big markets such as the US and the EU.

With fluctuating production costs, businesses are finding it difficult to sign long-term contracts with export partners, who themselves are also operating more cautiously and opting for smaller orders, as global demand is growing slowly.

Some orders to the Middle East are also facing difficulties in international payments and letter of credit confirmation due to the banking system being affected by sanctions or security risks. Direct export orders to the Middle East (worth approximately US$200 million/year in export value) are at risk of being delayed or cancelled without compensation due to force majeure...