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Saturday, July 13, 2024

High logistics costs bite

By Le Hoang

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High logistics costs and heavy dependence on foreign shipping companies have become major challenges for Vietnam’s agricultural exports, affecting product quality and pricing. Logistics costs higher than other regional countries The issue was addressed at a recent seminar on improving value chains of exported farm produce and boosting their integration with the logistics system, held in HCMC on June 23. The event was jointly organized by the Vietnam Logistics Research and Development Institute (VLI), the United Nations Industrial Development Organization (UNIDO), the Vietnam Logistics Business Association (VLA), and the Vietnam Fruit and Vegetable Association (Vinafruit). Nguyen Thanh Binh, chairman of Vinafruit, highlighted the low percentage of Vietnamese agricultural products eligible for export, despite the country’s substantial production of over 34.7 million tons of fruits and vegetables. Inadequate infrastructure further compounds the problem, leading to significant post-harvest losses estimated at around 30-35%. Logistics costs were identified as a major concern by Nguyen Dinh Tung, director of T&T Vina Company. He stated that logistics expenses in the agricultural sector are disproportionately high, accounting for 20-25% of the product cost. In comparison, agricultural logistics costs in Thailand only constitute 12% and have an average global rate of 14%. “Agricultural products from other markets […]
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