Proposal to reduce transportation taxes and fees.

(Chinhphu.vn) - Amidst the unpredictable developments in the Middle East conflict, the Ministry of Construction has proposed that the Ministry of Finance consider mechanisms to support transportation taxes and fees, such as: reducing landing and takeoff fees and air traffic control fees by 50%; exempting or reducing fees for entering and exiting inland waterway ports and wharves for inland waterway vessels; and considering adding fuel for transportation activities to the list of goods eligible for VAT reduction from 10% to a more appropriate level....

Thousands of flights have been canceled amid escalating conflict in the Middle East. Photo: Raghed Waked/Reuters

The Ministry of Construction has just released its latest report (March 16th) on the impact of the Middle East conflict on domestic transportation.

Some areas of airspace remain restricted.

Regarding the aviation sector, the Ministry of Construction report stated that, due to the continued closure of Qatari airspace, Qatar Airways has temporarily suspended most regular flights to and from Hamad International Airport (DOH) in Doha. Flights are only operating on a limited schedule after the Qatari aviation authorities granted temporary permission for a number of limited flight corridors to operate.

Against this backdrop, in Vietnam, flight QR7351, repatriating passengers from Hanoi to Paris, successfully departed in the early morning of March 15, 2026, transporting over 400 passengers stranded due to the Middle East conflict. Qatar Airways (QR) also announced the cancellation of six passenger flights on the Ho Chi Minh City-Doha and Hanoi-Doha routes on March 17, 2026, affecting nearly 1,400 passengers.

The UAE continues to implement strict air traffic control and regulation measures, with some airspace areas remaining restricted or partially closed. Emirates (EK) is expected to continue canceling flights EK364/EK365 on the Dubai - Ho Chi Minh City route and vice versa until March 25, 2026. At the same time, the airline will continue operating flights on the Hanoi - Dubai, Dubai - Bangkok - Da Nang routes and vice versa according to the previous schedule.

As for Etihad Airways, the airline also announced that it is currently operating only a limited number of commercial flights between Abu Dhabi and a few key destinations after conducting a comprehensive security and safety assessment and coordinating with relevant authorities.

In Vietnam, from March 14th to 20th, Etihad Airways resumed passenger flights EY430/EY431 and EY432/EY433 on the Hanoi to Abu Dhabi route and vice versa, transporting nearly 3,000 passengers during the period. On March 16th, Etihad Airways (EY) is scheduled to operate passenger flights EY431/EY433 on the Hanoi - Abu Dhabi route, transporting nearly 500 passengers. The airline's cargo flights continue to operate as planned.

On the Turkish Airlines side, passenger flights continue to operate normally, while cargo flights continue to have to adjust their routes in the Middle East due to political instability.

Regarding fuel price trends, in the Asian aviation fuel market, Jet A-1 prices on FOB terms in Singapore remained at around US$198-200 per barrel, indicating continued tight supply of refined fuel. Simultaneously, the market price structure continued to exhibit a backwardation pattern, reflecting high spot demand coupled with limited short-term supply.

Currently, Vietnamese ships and crew members operating in the Middle East region remain safe - Photo: Marine Traffic

Sea freight rates will increase by at least 10-20%.

Regarding the fleet operating in the Middle East, the Ministry of Construction stated that, to date, 15 vessels owned by Vietnamese enterprises (including 8 flying the Vietnamese flag) are operating in the Middle East region. The number of vessels operating in the Middle East has decreased by 2 compared to the previous week, as two vessels have left the Middle East for Vietnam and are heading to a third country. Currently, the Vietnamese vessels and crew are safe; some vessels are still operating normally, while others are anchored in various areas of the Middle East.

For other international shipping routes, the Drewry World Container Index (WCI) rose 10% from the previous week and 12-15% from pre-conflict levels, reaching $2,300-$2,500 per 40-foot container, primarily due to sharp freight increases on the Asia-Europe route, while also recording increases on the trans-Pacific route.

Asia-Europe freight rates have increased by over 20%, to $2,300-$2,500 per 40-foot container; Asia-Europe (Mediterranean) rates have increased by 10%, to $3,200-$3,500 per 40-foot container. Amidst ongoing adjustments in shipping capacity and freight rate increases by shipping lines, Drewry forecasts that spot freight rates may continue to rise in the coming weeks.

According to Drewry's assessment, several major shipping lines such as MSC and CMA CGM have announced upward adjustments to FAK freight rates effective March 22, 2026. Simultaneously, five blank sailings are expected to be cancelled on the Asia-Europe route and seven on the trans-Pacific route next week.

Drewry noted that geopolitical tensions in the Middle East continue to impact global supply chains, potentially putting upward pressure on container shipping rates in the short term. Additionally, many shipping companies have announced war surcharges and fuel surcharges for import and export goods; the surcharge amount depends on the shipping route, itinerary, distance, and the impact on each route, therefore the charges vary among shipping companies.

As of March 16th, road transport fares and costs in Vietnam have fluctuated significantly due to the sharp increase in gasoline/diesel prices (up 20-30%). Transport businesses that have made adjustments comply with regulations on price declaration and public display at bus stations for passengers to choose from.

Conversely, for domestic rail transport, based on the slight decrease in the price of 0.05S diesel fuel to 27,020 VND/liter from 10 PM on March 12, 2026, the Vietnam Railway Transport Joint Stock Company has adjusted the current passenger train ticket prices down by 3%; and reduced freight transport rates by 4% for all trains and all routes, effective from 0 AM on March 13.

To ensure supply and demand, stabilize fuel prices and transportation costs, and support Vietnamese airlines and shipping companies, the Ministry of Construction proposes that the Government continue to direct the implementation of "urgent solutions to respond to the ongoing conflict in the Middle East" as outlined in Section IV of Government Resolution 36/NQ-CP dated March 6, 2026. This includes focusing on diversifying crude oil supply sources for refineries to maintain operations and ensure domestic fuel supply; and continuing to establish high-level working mechanisms with countries in the region (such as Thailand and China) to facilitate Vietnamese businesses in fulfilling existing Jet A-1 fuel purchase contracts as well as future purchases.

The Ministry of Construction has requested the Ministry of Industry and Trade to continue directing oil refineries and gas processing plants to develop plans to expand their raw material import sources to maintain operations and ensure the domestic supply of gasoline and diesel; and to direct gasoline and diesel businesses to prioritize fuel supply to key transportation and construction businesses in case of fuel shortages that do not meet domestic demand.

The Ministry of Agriculture and Environment and provincial People's Committees need to find solutions to shorten administrative procedures to facilitate businesses in increasing capacity and opening new coal mines, thereby increasing the domestic coal supply.

The Ministry of Construction also requested the Ministry of Finance to study and propose to the competent authorities a plan to reduce the special consumption tax and environmental protection tax on gasoline and oil products for a suitable period to respond to the fluctuating global gasoline and oil prices; to continue studying tax and fee support mechanisms related to transportation businesses such as: reducing landing and takeoff fees and air traffic control fees by 50% in the aviation sector; exempting or reducing fees for entering and exiting inland waterway ports and wharves for inland waterway vessels; and to consider adding fuels serving transportation activities to the list of goods eligible for VAT reduction from 10% to a more appropriate level.

If necessary, this agency also requested the Ministry of Foreign Affairs to coordinate in sending diplomatic notes to the UAE, Saudi Arabia, and several neighboring countries requesting assistance when Vietnamese ships and crews need food and essential supplies; and to assist in working with countries and international aviation authorities to facilitate access to fuel supplies for Vietnamese airlines and to ensure that Vietnamese airlines maintain their historical slots when requested by the Ministry of Construction.

Phan Trang

Source: https://baochinhphu.vn/de-xuat-giam-thue-phi-van-tai-trong-tinh-hinh-chien-su-trung-dong-tiep-tuc-leo-thang-102260316182851116.htm