Experts claim that high logistics costs have made Viet Nam's agricultural exports less competitive than other countries’, especially that of Thailand, despite having many advantages. Logistics account for 20-25 per cent of the cost of Viet Nam’s agricultural produce, while it is only 12 per cent in Thailand and 14 per cent globally, said Nguyen Dinh Tung, vice chairman of the Viet Nam Fruit and Vegetables Association.
"Vietnamese fruits are not inferior to Thailand’s in terms of quality, but less competitive due to higher costs." For companies exporting agricultural items by air, such as Vina T&T, logistics costs account for more than 30 per cent, and so, after irradiation and other costs, they earn very low profits, he said.
Nguyen Tu Uyen, director of CMU Logistics Transportation Services Co., Ltd, said the cost of transporting agricultural products from Thailand to international markets is US$1 - 1.2 per kilogram less than from Ha Noi and HCM City thanks to the many daily flights to the US, Europe, Australia, and other markets and ships connecting Thailand with 70 destinations in Asia and the Middle East.
Experts claim that the government needs to further invest in road infrastructure in the delta’s raw material-growing areas so that farmers and co-operatives can ship agricultural produce to export markets when still fresh.
Source: vietnamnet.vn
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