State needs to help cut logistics cost for farm produce

Update: 16:40 | 13/07/2020
The State should develop solutions to reduce high logistics costs in trading agricultural products to improve the competitiveness of Vietnamese farm produce on the market, according to experts.
TIN LIÊN QUAN
Vietnam eyes place in world’s top 10 farm produce processing hubs
Vietnam, China businesses hold online conference on farm produce
state needs to help cut logistics cost for farm produce
The transportation cost has accounted for 61 percent of total logistics costs for fruit and vegetable products.

The logistics costs have accounted for 12.2 percent of seafood product value, 19.8 percent of rice product value and 29.5 percent of fruit and vegetable value, Nguyen Duy Minh, vice chairman and general secretary of the Vietnam Logistics Business Association (VLA), said.

Especially, Minh said the transportation cost has accounted for 61 percent of total logistics cost for fruit and vegetable products, followed by handling costs with nearly 20 percent of the logistics costs.

At an online conference on the logistics costs in the value chain of Vietnamese agricultural products held recently in Ha Noi, the experts said that the factors behind the high logistics cost included high transportation cost, high fees and charges of foreign shipping companies and restrictions on ports and infrastructure.

Besides that, new rates of infrastructure fees set by localities and the implementation of special inspection or quarantine quality inspection were also reasons for the high logistics costs, they said.

Le Van Quang, Chairman of the Minh Phu Group Joint Stock Company, said that the transportation cost of a shrimp container was only 41 million VND from Vietnam to the US and 16 million VND from Vietnam to Japan but this cost was 80 million VND from HCM City to Hanoi.

Similarly, the transportation cost for a shrimp container from HCM City to a border gate with China in the northern region was 100 million VND, while a shrimp container shipped from Ecuador to China was just half, even though the distance between Ecuador and China is far greater than from Vietnam.

Quang said that the cause of this was too many toll stations on land. Therefore, the State needs to have solutions to cut domestic transportation costs.

Farm produce exports face RoK’s rigid rules

Farm produce exports face RoK’s rigid rules

Tran Thanh Hai, Deputy Director of the Import and Export Department under the Ministry of Industry and Trade, said that the value of agricultural products is low while transportation costs are high. Besides that, agricultural products need cold storage and professional transport vehicles. These two factors have also put great pressure on logistics activities for agricultural products.

He said the high logistics cost has caused weak transportation infrastructure and uneven distribution of ports. The central region has a low demand for transporting goods but has many ports while the Mekong Delta region has a high demand for goods transport but lacks ports.

In addition, there are many problems in the connection between transport vehicles and logistics centers and between seaports.

To solve those problems, Hai said an important solution is an investment in developing large agricultural logistics centers to ensure the quality of farm products in storage.

Besides that, the State needs to put more investment in improving transport infrastructure on waterways, including ports, because transportation is cheap, he said.

Minh said the State should plan regional logistics centers to create favorable conditions for the production and trading of farming products. Technology also has an important role in traceability, monitoring the quality of goods and connecting transport companies online.

Director of the Department of Agricultural Product Processing and Market Development Nguyen Quoc Toan said the planning of developing logistics centers according to regions would promote linkages between localities.

Conference promotes Ha Noi’s safe farm produce

Conference promotes Ha Noi’s safe farm produce

The Ha Noi Promotion Agency (HPA) and Japan’s JICA Safe Crop project have organised a conference in Ha Noi, aiming to seek ways to stimulate ...

Enterprises seek chances to export farm produce to Mexico

Enterprises seek chances to export farm produce to Mexico

A delegation of the Vietnam Food Association (VFA) made a working visit to Mexico from August 3-7 to look for chances to export rice and ...

Exporters of farm produce face more checks in China

Exporters of farm produce face more checks in China

Vietnamese exports of agricultural products must meet food safety, quality and traceability requirements to China which now requires that exports be sent through official channels ...

(Source: VNA)