Mekong Delta: Logistics problems hamper agri exports

As the Vietnamese Mekong Delta does not have enough deep-water ports or warehousing, transport costs have been surging, which in turn caused agriculture product competitivity to drop.

Mekong Delta contributes 90 percent of the country’s rice exports, 65 percent of seafood exports, and 70 percent of fruit exports.

It has a total seven ports, of which the largest is Long An International Port in southern Long An Province. The latter can accommodate cargo ships with a capacity of 70,000 tons. The second largest is Cai Cui Port in the Mekong Delta city of Can Tho, which can handle 20,000 ton cargo vessels. It also has 57 inland waterway ports.

Experts say the Mekong Delta waterway traffic system is of low quality, limiting the capacity of cargo ships operating in the area.

Chairman of Hau Giang Business Association Pham Tien Hoai has stated: "Logistic costs accounts for 30 percent of product price, which is an unreasonably high proportion. In Thailand the figure is 12.5 percent, and the average global figure, 14 percent. This hinders Mekong Delta agriculture products from competing with equivalents from Thailand and China."

Ngo Tuong Vy, deputy director of Chanh Thu Import-Export Limited Company, specializing in agriculture products, told e.vnexpress.net that fresh fruit need to be well-preserved after harvest so it could be exported by sea to reduce costs.


Photo source: Dreamstime.com


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