Vietnam Delivery Riders Squeezed as Fuel Costs Rise on Middle East Tensions

Why It Matters

Rising fuel costs threaten the profitability of Vietnam’s gig‑delivery sector, risking labor shortages and prompting regulatory and technological shifts to safeguard a rapidly expanding workforce.

Key Takeaways

• Fuel prices in Vietnam jumped 21% gasoline, 54% diesel.
• Delivery riders face income loss, must work longer hours.
• Order earnings unchanged while costs nearly double, squeezing margins.
• Riders consider switching fuel types but face high upfront costs.
• Government ordered refinery to cut petrochemicals, boost fuel output.

Summary

Vietnam’s delivery riders are feeling the squeeze as fuel prices surge amid heightened Middle East tensions. Data from Top Fuel Trader Petrolic shows gasoline up 21% and diesel up 54% since the Iran‑Israel conflict escalated, prompting riders on food‑delivery and e‑commerce platforms to confront sharply higher operating costs.

Riders report that their daily earnings have not risen to match the cost spike. A typical order that once covered 40,000‑50,000 VND in fuel now consumes 80,000‑100,000 VND, effectively halving profit margins. With wages remaining low, many are forced to increase mileage and hours just to break even, while some contemplate switching to alternative fuels despite the capital outlay required for new motorcycles.

One rider lamented, “If the price goes up and the platform fee stays the same, life becomes much harder; we have to work more to protect daily income.” Another highlighted the fixed‑asset dilemma, saying the bike is a sunk cost and switching fuels is financially daunting. In response, the government directed the country’s largest refinery to curtail petrochemical production and prioritize fuel output to stabilize prices.

The situation underscores growing vulnerability in Vietnam’s gig‑economy workforce, where volatile external shocks quickly erode earnings. Prolonged fuel inflation could accelerate a shift toward electric or hybrid delivery fleets, pressure platforms to revisit fee structures, and prompt broader policy interventions to protect low‑income workers.

Original Description

Vietnam’s delivery riders across food and e-commerce platforms said on Thursday (April 2) they are grappling with fuel price volatility driven by Middle East tensions, as rising costs erode incomes, forcing many to extend working hours to cover basic expenses.

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