Vietnam is close to China but it takes 7 days to export durian

At the scientific conference on the topic "Orientation for perfecting and improving the efficiency of the logistics service supply system in the agricultural value chain" that took place recently, Mr. To Manh Ha - Business Manager, Board of Management Agriculture - Forestry - Fisheries Management (T&T Group) - said that Vietnam is located close to the Chinese market but the logistics infrastructure has not exploited this advantage. Currently, a durian truck traveling from Dak Lak to Lang Son for export to China takes 7 days if the border gate is clear. If there is congestion, the car has to wait, and the cost of fuel alone costs an additional 2.5 million VND/day.

Remove logistics bottlenecks, increase the value of agricultural products

From the perspective of logistics businesses, according to Mr. Le Minh - Director of Vietnam Logistics Joint Stock Company, agricultural logistics for many years has "been known for its high prices". But businesses also have their own suffering, having to invest heavily in vehicles, warehouses, loading and unloading equipment... and just hope to have enough goods to run.

The reason comes from the characteristics of many types of agricultural products that are in season and can be harvested in a very short time. In small production areas, it is very difficult to collect goods centrally and the connection and coordination between production units is still weak, everyone does their own thing.

Many trips from the South to the North carry a maximum of 25 tons, but in reality there are trips with only more than a dozen tons of goods. Empty vehicles, logistics businesses persuade customers to combine trips to reduce costs but they refuse. Not to mention that logistics businesses are often overturned. Customers sign yearly contracts, but if another unit offers a price per trip that is a few hundred thousand dong lower, they unilaterally break the contract.

In 2023, the agricultural industry will achieve its highest growth rate in many years. Vietnam's agricultural, forestry and fishery exports reached over 53 billion USD, the highest surplus ever of 13.06 billion USD. Vietnamese agricultural products are currently present in nearly 200 countries and territories around the world.

According to experts, although not inferior in quality, logistics costs are too high and heavy dependence on foreign shipping companies makes Vietnamese agricultural products less competitive when exported to the world. Reducing costs and logistics time will be the driving force to push Vietnamese agricultural products further.

Regarding this, according to Dr. Nguyen Anh Phong - Deputy Director of the Institute of Policy and Strategy for Agricultural and Rural Development ( Ministry of Agriculture and Rural Development ), logistics services in general and agricultural logistics still have many limitations. The shortcomings of the logistics system significantly affect the efficiency of the agricultural supply chain.

The rate of wastage and loss in the agricultural product chain is high from 25-30%, of which seafood is 35%, vegetables and fruits can be up to 45%. Logistics costs account for 12% of the cost of seafood products, 23% of the price of wooden furniture, 29% of the price of vegetables and fruits, and 30% of the price of rice. Agricultural logistics costs in Vietnam are 6% higher than Thailand, 12% higher than Malaysia and 300% higher than Singapore. Overall, Vietnam's logistics costs account for more than 20% of GDP; Meanwhile, the average logistics cost in the world is only about 11% of GDP.

Also according to Dr. Nguyen Anh Phong, at border gates and large ports, agricultural goods gathering yards are not guaranteed, there is a lack of cold storage systems, quarantine services, coordination is still inadequate, causing congestion. In the country, some concentrated production areas and trading hubs lack logistics centers to help link production and consumption of agricultural products.

It is necessary to promote the development of cross-border logistics

Mr. Le Minh said that to improve the value and competitiveness of agricultural products, production and logistics must cooperate closely for "win-win benefits".

According to Mr. To Manh Ha, to improve added value and competitiveness for exported agricultural products, logistics investment in agriculture should focus on strong industries with export value of at least 1 billion USD. above.

Sharing international experience, Ms. Dinh Thi Bao Linh - Deputy Director of the Center for Industry and Trade Information ( Ministry of Industry and Trade ) - said that Vietnam should refer to Taiwan's (China) approach. From 2021, Taiwan will begin to promote and increase investment resources to develop cold chains for agricultural products, and has now established leading logistics centers in the farming, fisheries, and livestock industries. Also according to Ms. Linh, the Government should consider developing PPP models to accelerate investment in infrastructure to soon solve current logistics challenges in agriculture.

From a business perspective, Mr. Dang Dinh Long - Chairman of the Board of Directors, General Director of Mega A Group - shared that cross-border logistics will handle all related stages at one point and this is extremely important. important, especially for agricultural products, food requires the fastest time to ensure quality and freshness. Cross-border logistics will create the most optimal transportation service in terms of cost, time and quality of goods. Implementing cross-border logistics, total service costs will decrease by 5-8%. In addition, logistics will through linking the port system to bring agricultural products deep into the import market and be able to reach higher customer segments.

“ One station or one stop, goods can go from the exporting country to the importing country as quickly as possible without having to go through many inspection stages. At that time, the goods will be carefully inspected right from the starting point (exporting country), then go straight to the stop (end point) ," Mr. Dang Dinh Long said.

According to Mr. Ngo Xuan Nam - Deputy Director of the Notification Office and National Question and Answer Point on Sanitary Epidemiology and Animal and Plant Quarantine (Vietnam SPS Office), markets are constantly having changes in regulations. products, goods inspection procedures...

Thus, when implementing cross-border logistics, updating information and regulations from markets is not only necessary for farmers, cooperatives, businesses, and industry associations, but even for businesses. logistics. logistics.

Grasping information early, affiliated and cooperative units coordinate smoothly in complying with import market regulations, so that products meet the correct requirements as well as ensure quick customs clearance of goods. best.

To make logistics a driving force for the development of the agricultural sector, the Ministry of Agriculture and Rural Development is currently developing a draft project "Developing a logistics service system to improve the quality and competitiveness of Vietnamese agricultural products." South until 2030."

In particular, the Ministry of Agriculture and Rural Development will propose to implement 3 projects: Establishing a cross-border agricultural, forestry, and fisheries logistics chain connecting the markets of Vietnam, Laos, Cambodia, and China; establish an agricultural, forestry, and fishery export logistics infrastructure chain integrating e-commerce and multimodal transportation; establish an agricultural, forestry, and fisheries logistics chain by air connecting ASEAN and China markets; which focuses on cross-border e-commerce applications .

The project will resolve current bottlenecks, contributing to opening up the export flow of agricultural, forestry and fishery products.