Vietnam Aviation Sector Braces for Major Flight Reductions as China and Thailand Halt Strategic Jet Fuel Exports

Vietnam warns of major flight cuts starting April 2026 as China and Thailand halt jet fuel exports due to the Iran war and rising global energy costs.

By: AXL Media

Published: Mar 16, 2026, 9:02 AM EDT

Source: The information in this article was sourced from CNA

Regional Energy Crisis Hits Vietnamese Airspace

Vietnam’s aviation industry is facing an imminent operational crisis as regional geopolitical tensions disrupt the flow of essential energy supplies. The Civil Aviation Authority of Vietnam has officially advised carriers to prepare for significant flight reductions beginning in April 2026, citing a complete halt in jet fuel exports from China and Thailand. With Vietnam relying on international markets for more than two-thirds of its aviation kerosene, the sudden withdrawal of its primary suppliers has left the domestic transport sector in a precarious position. Authorities have already instructed airport operators to designate additional parking space for grounded aircraft as the industry anticipates a sharp contraction in schedules.

Supply Chain Vulnerabilities and Export Bans

The current shortage is a direct consequence of the escalating conflict involving Iran, which has prompted neighboring economic powers to prioritize domestic reserves. Documents from major Vietnamese importers, Petrolimex and Skypec, indicate that current fuel stocks can only guarantee operations through the end of March. China recently issued a hard ban on refined fuel exports to preserve its national energy security, while Thailand enacted a similar prohibition on fuel oil exports to all nations except Myanmar and Laos. These restrictive policies have effectively severed 60 percent of Vietnam's traditional supply chain, leaving the state-run aviation regulator searching for alternative sources in a tightening global market.

Diplomatic Maneuvers to Secure Energy Ties

In response to the looming shortfall, the Vietnamese government has launched an urgent diplomatic offensive to restore energy cooperation with its neighbors. Foreign Minister Le Hoai Trung recently met with his Chinese counterpart in Hanoi to advocate for close coordination on energy security, emphasizing the critical nature of fuel stability for regional commerce. Simultaneously, Prime Minister Pham Minh Chinh has directly petitioned the Thai ambassador for assistance in addressing the deficit. Despite these high-level engagements, official readouts from Beijing and Bangkok remain cautious, reflecting the broader regional anxiety surrounding oil chokepoints and the security of the Strait of Hormuz.