The economic shockwaves from escalating Middle East tensions are hitting Vietnam's sprawling gig economy particularly hard. Drivers working for ride-hailing apps like Be report a grim calculus: after eight hours of work ferrying passengers through Ho Chi Minh City's congested streets, many pocket less than $5 USD in actual earnings after fuel costs. For workers operating on razor-thin margins in one of the world's most motorcycle-dependent cities, the math no longer works.
The root cause traces directly to geopolitical instability. Vietnam sources approximately 80% of its crude oil from Kuwait, but Iran's effective blockade of the Strait of Hormuz has strangled these supply lines. The result is stark: diesel prices have more than doubled, while petrol has climbed nearly 30% in recent weeks. In a metropolis like Ho ChiMinh City—home to more than 7 million motorcycles—this translates into an existential threat for workers whose livelihood depends on fuel efficiency.
The response from Hanoi has been swift but limited. Prime Minister Pham Minh Chinh announced a temporary suspension of environmental taxes on diesel and petrol through mid-April, a move estimated to cost the government approximately $273 million in forgone revenue. Yet experts warn this stopgap measure may prove insufficient. According to analysts at Singapore's ISEAS-Yusof Ishak Institute, the government had little choice but to act, given mounting public frustration and the risk of broader macroeconomic instability if costs continue climbing unchecked.
Many drivers are already voting with their thumbs—simply turning off their apps and staying home, betting that prices will fall or relief measures will materialize. Whether Vietnam's emergency interventions will stabilize the situation before the gig workforce faces permanent damage remains an open question as global energy markets remain volatile.
Originally reported by Al Jazeera English. Rewritten for ABN12.