Mekong Delta should build logistics chains to boost exports

An Giang (VNA) – Building production and logistics chains is one of the solutions proposed by a provincial official in the Mekong Delta in order to create breakthroughs in agricultural development.

Director of An Giang provincial Department of Agriculture and Rural Development Tran Anh Thu, a delegate to the upcoming 12th National Party Congress which is slated for January 20-28, 2016, talked about the matter in an interview with Vietnam News Agency.

He said ports in An Giang and Can Tho city are incapable of shipping the delta’s farm produce abroad. Therefore, a majority of the products must be transported to Ho Chi Minh City’s ports, resulting in their increased pricing and reduced competitiveness.

Therefore it is a must to build production and logistics chains to cut down on intermediary links, subsequently costs and better control product quality, he suggested.

Equally important is boosting the application of science and technology into agricultural production and developing infrastructure, not only for the Mekong Delta but also across the country to increase the competitive edge of farm produce in domestic and foreign markets, he noted.

The Director also highlighted the significance of building national brand names for key products and support businesses in production and logistics chain, adding that strong businesses will assist the growth of farmers and cooperatives.

As Vietnam has officially joined the ASEAN Economic Community and soon the Trans-Pacific Partnership (TPP) Agreement, some domestic farm produce could face difficulties. However, many staples, including those of An Giang such as seafood and rice, have a lot of potential to make inroads into new markets, he said.

He stressed that it is essential to forge ahead with agriculture restructuring, focusing on shifting ineffective rice cultivating land to growing other better suited crops such as vegetables and fruit for export.

The official noted that An Giang is one of the biggest rice and seafood exporters in the country, with the average gross regional domestic product (GRDP) growth of 8.63 percent between 2010 and 2015. The per capita income in 2015 reached nearly 40 million VND (1,800 USD) per annum.

In 2015, local products were sold to 133 countries and territories, up 26 countries against 2010.

The ratio of poor households reduced to 2.5 percent by the end of 2015.-VNA