Vietnam’s Persian Gulf Trade Exposure 2026: Unpacked

With the conflict in the Middle East raging, trade disruptions are inevitable, particularly for goods traversing the Strait of Hormuz. Here’s what that trade looks like for Vietnam.

Last year, two-way trade between the four key Persian Gulf economies — Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) — and Vietnam reached just over US$16 billion.

Much of this trade transited through the Strait of Hormuz. 

With the conflict in the Middle East, threatening ships using this route, however, there will undoubtedly be implications for this multi-billion dollar trade.

This article provides a brief overview of the key sectors that will be impacted using preliminary data from Vietnam’s General Department of Customs.

Imports

Vietnam imported US$8.53 billion worth of goods from the Persian Gulf in 2025. The biggest import by far was crude oil, followed by plastics and liquified petroleum gas (LPG).

Crude Oil

Vietnam’s biggest import from the Persian Gulf region was Kuwaiti crude, with 11.35 million tonnes imported last year, for which it paid US$6.12 billion.

This was about 71.8 percent of Vietnam’s total imports from the region and about 85 percent of its crude oil imports overall. This last point is on the back of a deal made with Kuwait to supply Vietnam’s Nghi Son refinery, which provides about 35 percent of Vietnam’s petrol supply.

See also: Iran Oil Price Shock: Implications for Vietnam

Plastics

Vietnam also imported about 1.3 million tonnes of plastics from the four Gulf States last year. These were worth US$1.29 billion and were roughly 15 percent of Vietnam’s imports from this part of the world.

Most came from Saudi Arabia, about 70 percent, followed by the UAE, Kuwait and then Qatar. 

This was about 10 percent of Vietnam’s total plastics imports.

LPG

Liquefied petroleum gas (LPG) was Vietnam’s third biggest export from the Gulf States last year. It received about 676,818 tonnes for just over US$406.2 million. 

Most of these imports came from Qatar and Saudi Arabia, accounting for 283,336 tonnes and 189,005 tonnes, respectively. Though smaller volumes did come from Kuwait (91,599 tonnes) and the UAE (112,878 tonnes).

Combined, this was about 18.86 percent of Vietnam’s total LPG imports in value and 21.74 percent in terms of volume. These were among its cheapest import sources too, with an average price of US$602 per tonne versus an overall average of US$622 per tonne. 

Note that it was reported on Monday that LPG shipments were already being disrupted, with PVGas announcing all shipments expected from March 10 had been suspended.

Exports

Vietnam exports US$8.1 billion worth of goods to the Persian Gulf in 2025. The biggest exports were phones, computers, and machines.

Phones

Last year, Vietnam exported just under US$4.13 billion worth of phones and phone parts to the Gulf States. These were about 7.28 percent of Vietnam’s total phone exports.

Most of these went to the UAE — about US$3.14 billion worth — followed by Saudi Arabia, which accepted US$985.7 million worth.

Computers

After phones, Vietnam shipped computers and computer parts worth US$806.23 million. 

These went mostly to the UAE (78 percent), as well with the remainder to Saudi Arabia. 

Machines

Rounding out the top three, machines and equipment worth US$519.8 million were shipped from Vietnam to the Gulf.

 Again, these went mostly to the UAE (71.89 percent), with the rest shipped to Saudi Arabia.

Food for thought

Alternative shipping routes

There are ways to avoid the Strait of Hormuz. Saudi Arabia has ports on the Red Sea, and there are overland routes to Kuwait and the UAE. Shipping energy assets, particularly oil, this way, however, is likely to be expensive in the quantities that Vietnam has been buying.

Conversely, exports from Vietnam to the Gulf states are mostly manufactured goods, which are generally easier to move overland.

Export concentration

The UAE is by far the biggest destination for Vietnamese exports among impacted states, accounting for roughly 72.98 percent of their combined total.

This means a significant jump in shipping times for the bulk of Vietnam’s exports, assuming they make their way to the UAE via the Red Sea.

Energy risks

Across coal, crude oil, petroleum products, and LPG, Vietnam’s total energy imports in 2025 came in at US$25.32 billion, with energy imports from the Gulf states accounting for US$7.04 billion worth, or about 28 percent.

That is to say, the risks to Vietnam’s energy security are significant. 

The data | 2025

Imports

Exports