In the bustling streets of Ho Chi Minh City, the economic repercussions of global conflicts are reverberating through local communities, particularly among gig workers who rely on e-hailing services. The current energy crisis, exacerbated by geopolitical tensions, has led to skyrocketing fuel prices, compelling many drivers to rethink their livelihoods amid increasing financial strain. As the government seeks to mitigate the burden on citizens, the challenges faced by individuals like Nguyen reflect a broader narrative of resilience and adaptability in the face of hardship.
In Ho Chi Minh City, Vietnam, e-hailing driver Nguyen found himself disheartened after a long day of work, only to realize that half of his earnings had been consumed by fuel costs. Driving for approximately seven or eight hours, Nguyen earned around 240,000 Vietnamese dong (approximately .11), but his petrol expenses amounted to 120,000 dong (about .56). Despite the growing demand for rides, he lamented, “I can’t survive with this amount of money in the city.” The struggle of gig workers is emblematic of a broader economic challenge as Vietnam grapples with the ripple effects of the US-Israel conflict impacting Iran.
Historically, Vietnam sources about 80% of its crude oil from Kuwait, but recent conflicts have disrupted shipments, leading to significant fuel price hikes. Diesel prices have surged more than 100%, while petrol costs have risen nearly 30%, making transportation increasingly expensive in a city that hosts over seven million motorcycles. In response, many drivers, including Nguyen, are opting to disable their apps and refrain from working as they await potential relief measures from the government.
To combat this crisis, the Vietnamese government has proactively implemented emergency measures to cushion the economic blow. Prime Minister Pham Minh Chinh announced a suspension of environmental taxes on diesel, petrol, and aviation fuel until mid-April, aiming to stabilize prices and reduce public dissent. Nguyen Khac Giang, a visiting fellow at the ISEAS-Yusof Ishak Institute in Singapore, noted that the government’s actions are vital in alleviating public frustration while simultaneously maintaining macroeconomic stability.
Despite the revenue loss estimated at 3 million due to tax cuts, signs of economic strain are becoming increasingly apparent. Public transportation systems are operating at maximum capacity, and domestic airlines, including Vietnam Airlines and Vietjet Air, have had to reduce their flight schedules. Giang highlighted the vulnerability of an open economy like Vietnam’s, particularly when global shocks impact energy prices and fuel availability.
The challenges are particularly pronounced for gig workers, who endure precarious job conditions with minimal labor protections. Research fellow Do Hai Ha from the University of Melbourne emphasized that these individuals are often forced to work extended hours without guarantees of minimum wages or any forms of labor rights. As fuel prices continue to climb, employers also struggle; Anh Dao, a bus fare collector in Ho Chi Minh City, reported losses despite raising ticket prices in response to rising costs.
Rising fuel prices are reshaping daily life for low-income families as well. After returning from a trip to the Mekong Delta, Uyen Pham, a communications manager for the Saigon Children’s Charity, observed that many families are now severely constrained by the soaring costs of basic necessities. With bottled cooking gas nearly doubling in price, many households have reverted to wood-fired stoves, while parents are compelled to leave their children in the care of relatives to work longer hours in cities, diminishing their familial connections due to increased commuting costs.
The volatility of fuel pricing has thrust Vietnam’s government into greater scrutiny regarding its energy dependencies. Giang points out the urgent necessity for Vietnam to establish energy autonomy and bolster domestic refining capacities to mitigate reliance on imports. Presently, the country operates just two refineries, which is insufficient to meet market demands.
Confronted with short-term challenges while formulating long-term energy strategies, officials from Vietnam visited the Nghi Son Refinery, the nation’s largest facility, to explore solutions for its impending crude supply shortages. As companies adapt to shifting economic landscapes, Vingroup has redirected investment from its gas-fired power plant project towards renewable energy development, in light of the prevailing fuel price instability.
For many individuals, everyday life is on the brink of transformation due to these rising costs. Duy, who manages a café near a petrol station, expressed relief at the government’s fuel tax measures that have projected reductions in petrol and diesel prices, easing the burden on her income.
As Vietnam navigates the uncertain waters of global economic conditions, its citizens remain steadfast—beyond mere survival, they adapt and innovate, showing remarkable resilience in the face of adversity.
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