Business

Weak logistics services cause great losses to Mekong Delta exporters

The poor logistics services in the Mekong Delta have pushed up the costs of export goods, especially farm produce, and caused great losses to export firms, it was reported at a workshop in Can Tho city on April 23.
Weak logistics services cause great losses to Mekong Delta exporters ảnh 1A seaport in the Mekong Delta (Photo: Saigon Giai phong)

Can Tho (VNA) – The poorlogistics services in the Mekong Delta have pushed up the costs of export goods,especially farm produce, and caused great losses to export firms, it wasreported at a workshop on enhancing connectivity to improve value chains offarm produce and aquatic products in the Mekong Delta, held in Can Tho city on April 23.

Deputy Director General of MinhPhu Seafood Corp Chu Van An said his company, which is based in the MekongDelta, has to transport goods to Ho Chi Minh City for export, resulting in hugecosts. According to him, if goods can be directly shipped abroad from MekongDelta localities, the company could save between 30-40 percent of transportcosts.  

Le Duy Hiep, Chairman of theVietnam Logistics Business Association, said logistics costs for aquaticproducts and fruits, two main export staples of the Mekong Delta, account for20-25 percent of costs, which are high compared to the 10-15 percent ratio in regionalcountries.

According to Director of theDepartment of Industry and Trade of Can Tho City, Nguyen Minh Toai, around 70percent of the Mekong Delta’s annual export goods volume, at 17-18 milliontonnes, must be transported to big ports in Ho Chi Minh City and the Cai Mepport in Ba Ria-Vung Tau province, pushing transport costs up by between 10-40percent.

Therefore, it has become urgentto develop logistics services in the region, which accounts for 75-80 percentof the country’s earnings from agricultural product export.

Ho Thi Thu Hoa, Director of theVietnam Logistics Institute, said the Government had issued a plan on logisticscentres across the country, with two level-two centres in the Mekong Delta, inas early as 2015. However, no centre has been built in the region after fouryears.

Hoa urged Mekong Deltalocalities, especially Can Tho city, to show stronger resolve in forming a logisticscentre for the region.-VNA
VNA
#poor logistics services #Mekong Delta #export goods #farm produce #export firms #connectivity #improve value chains #aquatic products #Can Tho city #transport costs #Vietnam Logistics Business Association #ports #Vietnamplus #Vietnam News Agency
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