High cost of air transport and the inability to preserve fresh produce for a long time are among the logistic challenges that the Mekong Delta is facing. –(Photo baoangiang.com.vn)
CanTho (VNS/VNA) – Agriculture exports from the Mekong Delta are facing logisticalchallenges, affecting their competitiveness overseas.
Dong Van Thanh, Chairman of the Hau Giang provincial People’s Committee, saidthe Mekong Delta exports millions of tonnes of agriculture products everyyear but the region is facing many logistical choke-points.
The region is lacking key logistics hubs and storage areas for emptycontainers and products at ports. Goods have to be transported through manyareas before reaching HCM City for export, which increases the cost.
Ngo Tuong Vy, Deputy Director of the Chanh Thu Fruit Export and Import Co. Ltdin Ben Tre province, said that the cost of air transport of freshfruits to the US and European markets have increased greatly over theyears.
For example, the cost for air shipping fresh fruits to the US used to be around3.5 USD per kilo a few years ago, but now has risen to 6 USD per kilo.
This is affecting their competitiveness overseas and reducing the amount offruit shipped there.
However, since preservation technology for many fruit products is not goodenough, they have to rely on air transport.
The cost of ocean transport of fruit is 15 times cheaper than air, sobetter preservation technology to maintain quality onlonger container trips is important, she said.
Pham Tien Hoai, General Director of the Hanh Nguyen Logistics, said that thelogistics costs of Vietnam’s agricultural products are high, usually accountingfor around 30 per cent of their final prices, so they struggleto compete with goods from other suppliers such as China, Thailandand Indonesia. VoThanh Phong, general director of Hau Giang Maritime Service Co. Ltd, said theGovernment needs to continue its effort to improve andenlarge waterways in the Mekong Delta so that large vessels can easilytravel through different regions, reducing transport time and costs.
Le Tien Chau, provincial party secretary of Hau Giang, said that for 2021 –2026 the province will invest around 18 trillion VND (777.99 million USD) toimprove traffic infrastructure and region connectivity.
Every year the Mekong Delta accounts for 90 percent of the country’s riceexports, and 70 percent of fruit exports./.
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High cost of air transport and the inability to preserve fresh produce for a long time are among the logistic challenges that the Mekong Delta is facing. –(Photo baoangiang.com.vn) 
