Transport costs of agricultural products at extremely high levels

SGGP
An online conference on cutting the logistics costs to increase competitiveness and reduce the cost of Vietnamese agricultural products was recently held by the Vietnam Digital Agriculture Association (VIDA) in association with the Vietnam Logistics Business Association (VLA).
Mr. Le Van Quang, Chairman of Minh Phu Joint Stock Corporation, said that the transport cost for a container of shrimps from Vietnam to the US is merely VND41 million, from Vietnam to Japan is VND16 million, but from Ho Chi Minh City to Ca Mau Province is VND10 million, from HCMC to Hanoi is VND80 million, and from HCMC to the border between Vietnam and China is up to VND100 million. Meanwhile, the transport cost of shrimps exported from Ecuador to China with a distance of thousands of kilometers is merely less than half of that of Vietnam.

According to Mr. Nguyen Duy Minh, General Secretary of VLA, the factors that cause the logistics costs to increase include high transport cost; high surcharge and local fees imposed by foreign carriers on shippers; limits on ports and infrastructure, and new infrastructure fees charged by cities and provinces; specialized inspection cost. In the process of transporting, consuming, and exporting agricultural products, such as vegetables and fruits, the logistics costs usually account for up to 20.9 percent, of which, 61 percent of the cost is related to transport, 20 percent is related to loading and unloading, 14 percent is related to storage charges, and 5 percent is related to packing. According to enterprises, this is unreasonable because many tollbooths have caused the costs and the cost price of agricultural products to increase heavily.

By Van Phuc – Translated by Gia Bao

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