Macro/ Strategy

Unless prolonged, the Vietnamese oil market will not be significantly impacted. PVOil and Petrolimex (Vietnam's two leading petroleum retailers, holding over 70% of the market share) have inventories to ensure sufficient supply for the market in March. 

Inflation could increase if fuel costs rise. Fuel costs directly affect transportation costs, potentially pushing up the prices of goods sold on the market or impacting business profit margins. Although the impact is no longer as significant as during the 2006-2015 period, if oil prices increase by more than 10% in 2022 alone, it could push the overall CPI up by an additional 0.36%.

Interest rates showed initial reactions. The overnight interbank interest rate surged to over 10% on 2 March 2026. This could be a reaction to the global situation as global capital flows showed signs of seeking safe-haven assets like USD and concerns about inflation caused by conflict. These factors pushed interest rates and the DXY higher. Although this is only temporary, interest rates may continue to remain at new high levels in the future.