Deputy Prime Minister Vuong Dinh Hue emphasized that at Vietnam Logistics Forum 2019.

The Deputy Prime Minister directed that we need to focus on building and developing highly competitive types of logistics enterprises, applying modern technology to sustainably develop the logistics market in both the country and the region. .

As for Vietnam’s industry associations and enterprises, in the coming time, it is necessary to thoroughly grasp the viewpoint in production and business activities in order to increase the added value of exported products and goods, to avoid Exporting products and preliminary processed goods with large volume but low value affects transportation costs.

Identify the limitations
TS. Nguyen Quoc Toan, Director of Agro-Product Processing and Market Development Department – Ministry of Agriculture and Rural Development pointed out the problems posed by logistics for agricultural production, processing and consumption in Vietnam. .
That is, logistics costs for agricultural exports averaged about 20-25%, quite high compared to other countries in the region (about 10-15%). Logistics infrastructure connectivity in Vietnam still has many shortcomings. Limited storage and cold chain capacity. Most of the logistics service supply chains are done by small businesses individually.
Logistics services are only developing in big cities, while in many places such as the Mekong River Delta, which is considered the largest granary of rice and aquaculture in the country, this service is slow to develop. The distribution channel of agricultural products through the wholesale market and the local market has not met the requirements for quantity and quality.
Infrastructure and logistics services serving border trade are limited and have not yet created added value for Vietnamese agricultural products. Logistics centers are fragmented and spontaneous investment based on the needs of some groups of customers, not connected. The size of logistics centers is generally small, mostly under 10 hectares, centers of regional scale are not yet developed …
Mr. Tran Thanh Hai, Deputy Director of the Import and Export Department of the Ministry of Industry and Trade, also pointed out that Vietnam is the leading agricultural producer, the volume of agricultural products for domestic consumption and export is large, but the value is not proportional.

One of the major reasons is due to the lack of logistics services, such as the lack of warehouse systems, small scale, and cold chain, and many logistics enterprises are not yet interested. to the agricultural sector.

Besides, due to the characteristics of agricultural products, logistics services also require high professionalism, investment in warehouse and yard infrastructure is more expensive than many other goods. Especially, the majority of logistics human resources are inexperienced and knowledgeable about the characteristics of agricultural products, so many businesses consider the cold chain as a cost, not an added value.
The supply chain of agricultural products is interrupted and fragmented, making Vietnamese agricultural products devalued and unable to reach far.

“As in the Mekong River Delta, a national key agricultural region, the main driving force of agriculture, but ineffective business indicators, especially the stage of storage, preservation and transportation, are inefficient.

In the region, there is no complete logistics service supply chain, distributed port system, small scale, low capacity, no seaport, lack of container ports … increasing costs from 7 to 10 USD / ton. agricultural products “, Mr. Tran Thanh Hai stressed.

Recommend investment in logistics infrastructure
TS. Nguyen Quoc Toan, the first thing is to upgrade transport routes, set up agricultural logistics centers located in all 3 regions. The latest trends in logistics, adapting to the sharing economy, emphasize social capital sources, experience and creativity.

Transport, storage and distribution systems can change on the basis of combining new consumer trends and the capabilities of digital systems, automation, information and communications, artificial intelligence. .

Mr. Pham Minh Duc, Senior Economist of the World Bank in Vietnam also recommended that policy and investment in transport infrastructure be associated with trade and value chain. Strengthen coordination mechanisms for policies that integrate trade, transport and value chain development.

Detailed data assurance for value chain connectivity analysis and decision making. Encourage local specialization and interprovincial cooperation in investment policy in transport infrastructure. Improving models of industrial zones and economic zones to better support value chain development ….

Mr. Tran Thanh Hai also said that it is necessary to increase investment capital for agricultural logistics infrastructure such as investment in cold chains including cold storage, reefer truck and reefer container.

Besides, it is necessary to improve the connection of waterways and roads as well as make good use of railway, develop airways, build irradiation and inspection centers in key agricultural areas. Especially, it is necessary to change the mindset of making a wholesale market by using agricultural logistics center, technology application, agricultural logistics trading floor….

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