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Logistics costs – competitive challenges of Vietnamese agricultural products

Vietnam’s agricultural sector faces the problem of cost-cutting to increase international competitiveness in the face of the effects of Covid-19 and the impact of EVFTA.

Vietnamese agricultural products are facing fierce competition in international markets, especially price competition. One of the reasons for the price increase of Vietnamese agricultural products is logistics costs.

According to statistics from the Ministry of Agriculture and Rural Development, logistics in the agricultural value chain accounts for 20-25% of the total cost, which is quite high compared to the average of 10-15% of countries in the region.

According to the Vietnam Logistic Report 2019, coffee is one of the commodities that is quite expensive when bringing products from the Central Highlands to Cat Lai port. The total domestic transport logistics cost in 2018 of this item is 35 million USD, approximately 10% of the total export value.

The farmer grows coffee. Photo: Phan Anh

According to experts, infrastructure and logistics costs are one of the issues that need to be resolved to increase the competitive advantage of Vietnamese agricultural products. In the context of global agriculture being heavily influenced by Covid-19, causing demand to decline, this problem must find a solution more quickly than ever.

The challenges facing the agricultural sector will be discussed by experts at an online seminar with the topic “Logistics costs for Vietnamese agricultural products – Challenging competition in international markets”, broadcast live. on VnExpress at 15h on October 13.

The program has the participation of representatives of the Ministry of Agriculture and Rural Development, Mr. Trieu Thanh Nam – Deputy Head of Trade Policy Department cum Head of European Market Group, Department of Agro-Processing and Market Development. The logistics and agriculture business side included Mr. Tran Duc Nghia – Director of Delta International Company Limited and Ms. Nguyen Thi Diem Hang – Chairman of the Board of Directors of Vietnam Organic Farm Company; Vice Chairman of Vinapharma Group Pharmaceutical Joint Stock Company, Creative Director of GMP Tadaphaco Pharmaceutical Factory.

Under the coordination of Mr. Nguyen Duc Tung – Private Economic Development Research Board (Section IV), the guests will focus on analyzing the context, as well as the impact of the supply chain breakdown of Vietnamese agricultural products. South, which goes into depth on the loss during harvest and transportation. In addition, representatives of ministries, sectors and businesses frankly assessed the lack of linkages between agricultural products and logistics, and standard agricultural preservation technologies and techniques. From there, find solutions to reduce logistics costs and increase the competitiveness of Vietnamese agricultural products.

Readers can ask questions of the speakers in the comments.

Pham An

A series of webinars on agricultural issues is one of the activities of the AgriFair Online Agricultural Fair. The events will focus on discussing urgent topics, many businesses, readers interested in the agricultural sector. This is where managers, experts and businesses find solutions to agricultural – agricultural – market problems and future business development scenarios, especially the transition scenario. industry number change.

Interested individuals and units see information here