Full Breakdown
Rising Fuel Costs in Vietnam Amid Iran Conflict Impact Gig Workers
4/6/2026, 6:33:41 AM
Economic Impact of the Iran War on Vietnam
The ongoing conflict involving Iran has led to significant economic repercussions in Vietnam, particularly affecting gig workers and the broader population. Diesel prices in Vietnam have more than doubled due to an effective blockade of the Strait of Hormuz, which has disrupted oil supplies. This situation has forced many gig workers, such as e-hailing drivers, to spend a substantial portion of their earnings on fuel, severely impacting their livelihoods. For instance, one driver reported earning approximately 240,000 Vietnamese dong ($9.11) in a day but spending 120,000 Vietnamese dong ($4.56) on petrol, leaving him with insufficient income to sustain himself in Ho Chi Minh City.
Government Response and Economic Strain
In response to the rising fuel costs, the Vietnamese government has implemented emergency measures, including suspending an environmental tax on diesel and petrol until April 15, which is estimated to cost the government around $273 million in revenue. Despite these efforts, the strain on the economy is evident, with public transportation systems operating at full capacity and airlines like Vietnam Airlines and Vietjet Air reducing flight schedules. Experts highlight that Vietnam's open economy makes it particularly vulnerable to international shocks, and gig workers are especially affected due to their lack of labor protections and fluctuating incomes.
Effects on Daily Life and Family Dynamics
The rising fuel prices have also reshaped daily life for many families. Reports indicate that low-income households are increasingly relying on wood-fired stoves to save on cooking gas costs, which have nearly doubled. This shift has led to families spending less time together, as many parents must leave their children in rural areas to work in cities, exacerbating the emotional toll of economic pressures.
Long-Term Energy Independence Concerns
The crisis has prompted discussions about Vietnam's energy independence. Experts argue that the country needs to accelerate efforts to build more refineries to reduce reliance on imported oil. Currently, Vietnam has only two refineries, which are insufficient to meet domestic demand. Policymakers are exploring short-term solutions while acknowledging that long-term strategies will take years to implement.
Industry Adjustments and Future Outlook
The conflict has also influenced domestic investment decisions. Vingroup, Vietnam's largest conglomerate, recently announced it would halt plans for a major liquefied gas-fired power plant, redirecting funds toward renewable energy projects due to concerns over high fuel prices. As the government continues to navigate the immediate crisis, the focus remains on stabilizing fuel prices and addressing the economic challenges faced by gig workers and the broader population.
Verbatim Quotes
- “I can’t survive with this amount of money in the city.” — Nguyen, E-hailing Driver
- “Their income is changeable due to factors beyond their control,” — Do Hai Ha, Research Fellow
- “Rising fuel prices directly increase their commuting costs, while manual labour wages remain stagnant.” — Uyen Pham, Communications Manager
- “The longer-term question this crisis has enacted is a very important question about the strategic autonomy of Vietnam in terms of energy dependencies, especially when we are a net importer of oil,” — Nguyen Khac Giang, Visiting Fellow
Conflicting Reports & Gaps
While the government has projected a reduction in petrol prices by about one-quarter due to the tax cut, the actual impact on consumers remains to be fully assessed, as many continue to report high fuel costs. Additionally, the effectiveness of the government's measures in alleviating the economic strain on gig workers and families is still uncertain.
