Prime Minister Nguyen Xuan Phuc speaks at the event (Photo VNA)Dong Thap (VNA) - Prime Minister Nguyen Xuan Phuc has asked theMekong Delta region to improve logistics to increase fruit and vegetableexports to global markets.
Phuc spoke at a forum titled “Market Development for Fruit and Vegetables, andSolutions for the Development of Logistics Systems for Agriculture and RuralAreas” held in the Mekong Delta province of Dong Thap on December 18.
Phuc urged the region to continue to keep up with new trends in the globalmarket and “take advantage of the fourth industrial revolution and applyadvanced technologies in farming to produce the best quality fruit andvegetables.”
“Logistic plays a key role in enhancing competitiveness and promoting theglobal market for Vietnamese vegetables and fruits,” he said.
Bui Quoc Nghia, head of the Vietnam Logistics Institute, said the high cost oflogistics was one of the barriers reducing the competitiveness of Vietnameseagricultural products in the world market.
Specifically, the ratio of logistic costs to Gross Domestic Product (GDP) in Vietnamis 20.8 percent, compared to 15.4 percent in China, 10.7 percent in Thailand,13.5 percent in Asia Pacific, 9.2 percent in Europe, and 8.6 percent in NorthAmerica.
The average ratio of logistics costs to GDP globally is 11.7 percent.
However, the Vietnamese logistics industry has great growth potential,according to the report Vietnam Logistics Market 2017, Nghia said.
Rapid economic growth as well as significant trade with a total value of 350billion USD last year is expected to boost growth of the transport sector, henoted.
However, major hurdles facing the industry include underdevelopedinfrastructure and an overloaded road network, he added.
Nguyen Xuan Cuong, Minister of Agriculture and Rural Development, said thepotential for fruit and vegetable exports was huge.
“The ministry has focused on using modern technologies in agriculture in orderto create high quality products, thus improving competitiveness and expandingexport markets,” he said.
“Exports of fruits and vegetables are expected to continue to grow. The sectorshould develop associations for investing in hi-tech agriculture. Businessesshould work with farmer collectives to establish concentrated raw material areas,”he added.
The minister said the growth of the agricultural sector would largely depend onexport value and changes in the market.
It is essential for businesses and farmers to build production chains of safefruits and vegetables and use hi-tech agriculture in order to reach the exporttarget of 3 billion USD by the end of this year, he said.
Le Thanh, head of the Institute of Organic Agricultural Economics, saidvegetables and fruits had become a bright spot among agricultural exports asthey continue to see rapid growth.
He said the global demand for fruit and vegetable products had increased inrecent years.
“Export enterprises, farmers and producers have worked closely in recent years,thus, the quality and design of the products has improved, creating a goodreputation for Vietnamese vegetables and fruit,” he said.
Around 40 kinds of Vietnamese fruits and vegetables are exported to 40countries and territories, including major export markets such as mainlandChina, Japan, the Republic of Korea, the US, Malaysia and Thailand.
Richard Courey, Chairman and CEO of Vision Transportation Group (VTG), saidthat transport logistics was an important sector of the economy and in Vietnam,represents 20 percent of GDP.
However, in more developed economies like Canada or New Zealand it representsless than 10 percent of GDP, he said.
In an export-oriented economy, where pricing is dictated by global markets,this means a larger portion of the economic pie is available to local farmersand processors rather than international shippers and foreign retailers, headded.
“Of all economic activities, agriculture is the most dependent on thetransportation logistics network. And nowhere is this more visible applicablethan in Dong Thap province and other provinces in Mekong Delta,” he said.
Due to limited port capacity, 80 percent of goods for export from the MekongDelta are shipped via HCM City or Ba Ria-Vung Tau deep-water ports, he said.
“This ineffective logistic structure is not cost-effective and takes awayprofit from farmers as well as decreases product competitiveness on theinternational market,” Corey said. “We recommend Dong Thap incentivise andprepare a logistics foundation to energise the expanded production ofhigher-value fruits and vegetables in the Mekong Delta.”
The province should also design transportation infrastructure that will offerthe most effective logistical mix for organic and sustainable produce to enterand compete in major consumer markets, he said.
The province should also embrace new technology that offers human andenvironmental protection and assist in the uptake of technological transfer, headded.
The forum saw the signing ceremony of the Memorandum of Understanding (MoU) onthe development of logistics and infrastructure development in Dong Thap province.
The signing was done between the province, the Institute of OrganicAgricultural Economics, and a venture of the Investors of Vietnam InfrastructureDevelopment and Real Estate Corporation (VIPD), the Sunny World PropertyDevelopment Corporation, and the Saigon Gia Dinh Real Estate Joint StockCompany.
Under the MoU, the venture will finance research and development for alogistics and infrastructure development strategy in Dong Thap province.
The venture will promote investment in infrastructure development and urban andlogistics projects.
In addition, the provincial People’s Committee, Institute of OrganicAgriculture Economics, Lavifood Corporation and Greenland Business Group signedan agreement to promote the export of agricultural products from Vietnam toChina via an official channel for the first time with a value of at least 500million USD in the first two years and a gradual increase in coming years.
The Greenland Business Group is a wholly owned subsidiary of China GreenlandGroup, a leading importer and exporter of agricultural products in China andthe Asia-Pacific region.
The forum, organised by the Institute of Organic Agricultural Economics and theDong Thap provincial People’s Committee, was held to promote exports ofVietnamese fruits and vegetables as well as investment in the value chain offruits and vegetables.
Vietnam is expected to earn 3.5 billion USD from shipping vegetables and fruitsthis year, representing a year-on-year growth of 45 percent, according to theMinistry of Agriculture and Rural Development.
In 2017, China, Japan, the US, and the Republic of Korea were the four largestimporters of Vietnamese fruits and vegetables, importing 2.15 billion USD, 102million USD, 82 million USD and 73 million USD, respectively.
China was the dominant import market for Vietnam’s fruits andvegetables.
Japan, UAE, and China posted rising import turnover of Vietnamese fruit and vegetables,increasing by 66.1 percent, 58 percent, and 53.1 percent, respectively.
The country imported 1.25 billion USD in the first 10 months of the year,representing a year-on-year surge of 70.8 percent.
After attending the forum, Prime Minister Nguyen Xuan Phuc visited Thuan TanClub in Tan Thuan Tay commune, Cao Lanh city, Dong Thap province – a venue forMekong Delta residents to share agricultural production experience.-VNA
VNA
