05 December 2023

The Mekong Delta contributes to 40% of the country's agricultural production value. However, the region currently has only 171km of highways and logistics costs account for 30% of the cost of agricultural products. This is important information in the presentation of the Vietnam Logistics Business Association (VLA) at the National Logistics Forum 2023 in Can Tho, presented by Mr. Le Quang Trung, Vice President of VLA.

VLA representative also analyzed the reason for high logistics costs in the Mekong Delta is that up to 80% of goods here are transported by ministry. While the highway rate of the Mekong Delta is the lowest in the country. Traffic congestion is also frequent. As the region with the most advantage in water transport in the country, however, due to the limitation of static bridges, the route still has a shallow point, causing the barge tonnage to be only from 1,500 tons to 3,500 tons. The system for logistics in the Mekong Delta is also considered by VLA to lack synchronous connectivity, infrastructure does not meet actual needs. Lack of seaport system, especially deep-water ports for export container ships, lack of key logistics centers and satellite center systems, lack of empty container yards, warehouse systems at ports, food hygiene and safety inspection units, standard irradiation... The system of cold storage, cool storage for agriculture and fishery is lacking and is forecasted to be even shortage. Only 3/13 provinces and cities in the Mekong Delta have commercial cold storage: Long An, Hau Giang and Can Tho. These are the big reasons why logistics costs of the Mekong Delta are high, reducing the competitiveness of goods, especially agricultural products of the region.

To overcome logistics weaknesses and clear agricultural product flows, VLA proposes 2 groups of solutions. In terms of infrastructure solutions, the Mekong Delta should focus on improving the transport system of both roads, waterways and railways; building a modern warehouse system; strengthening multimodal transport; development of air transport services to extend shelf time for agricultural and aquatic products for export. In addition, promoting links, in order to develop an effective supply network is also an important solution emphasized by VLA in its presentation at the event. From regional links, to links between service providers, chain links from farmers, traders, processing plants, commercial enterprises and finally logistics enterprises...... In particular, based on the provincial competitive logistics index (LCI) that VLA has just announced in November 2023, Mekong Delta provinces can refer to come up with synchronous and effective solutions to improve the efficiency of local logistics activities. Because LCI is calculated based on 5 pillars including: Economy, Logistics Services, Legal and Policy Framework, Infrastructure and Logistics Human Resources. Based on the scores received by each pillar, localities will recognize their strengths and weaknesses as well as strategic orientation of development solutions for the industry. According to the LCI 2022 report, along with the Mekong Delta, there are 5 provinces included in the assessment, of which Can Tho and Long An achieved quite good rankings (tied for 9th).

At the end of the presentation, Mr. Le Quang Trung Vice Chairman of VLA emphasized that improving the efficiency of logistics activities is an important key for the Mekong Delta economy to take off, and VLA is willing to cooperate with authorities, industry associations and logistics of the region to implement solutions effectively,  unshakeable.

At the National Logistics Forum 2023, 4 collectives and 2 individuals of VLA were honored to receive certificates of merit from the Ministry of Industry and Trade for their contributions to the development of Vietnam's logistics industry. Congratulations: Air Logistics Joint Stock Company (ALS), Con Ong Freight Forwarding Joint Stock Company (BEE Logistics), AAAS Forwarding Service Co., Ltd., Long An International Port, Ms. Vo Thi Phuong Lan – Head of Transport – Forwarding Department VLA, Ms. Nguyen Thi Hong Ngan – Head of VLA Legal Department.