Regional linkages to enhance the value of Vietnamese goods in the supply chain

Regional linkages to enhance the value of Vietnamese goods in the supply chain

Strengthening regional linkages is a solution to improve the value of Vietnamese goods in the global supply chain. This is the opinion of experts at the Seminar on strengthening regional links organized by the Ho Chi Minh City Trade and Investment Promotion Center (ITPC), afternoon 8/12.

 

Mr. Tran Phu Lu, Deputy Director in charge of ITPC gave the opening speech. Photo: Xuan Anh - VNA

Mr. Tran Phu Lu, Deputy Director in charge of ITPC assessed, pandemic COVID-19has changed the landscape of the global economy in recent years, causing a series of disruptions in global supply chains.

The pandemic is gradually brought under control in other countries, but the Russian-Ukrainian military conflict has caused the price of raw materials and input costs to rise, along with China's implementation of a Zero COVID policy, adding to the risks of improving supply chains.

In this context, Vietnam is gradually becoming an alternative point and playing an increasingly important role in the global supply chain. This brings development opportunities for the economy and businesses of Vietnam in general as well as Ho Chi Minh City in particular.

However, currently, the urgent issue for the development of raw material supply is how to reduce the dependence of enterprises on imported raw materials, increase the proportion of domestic raw material supply.

Analysis of limitations in the chain of production and consumption agricultural products, Ms. Ly Kim Chi, Chairwoman of the Ho Chi Minh City Food Association, said that Ho Chi Minh City is not only a concentration of manufacturing and processing enterprises, but also a large consumption market and an export hub of the whole southern region. However, currently, agricultural production in Ho Chi Minh City only meets about 20-30% of the food needs of the city's people, the rest must be imported from the provinces or through many different roads.

In contrast, the Mekong Delta, the Southeast and the Central Highlands fully converge the factors of nature, geography and humanity to connect the production value chain of the region with the consumption needs of not only Ho Chi Minh City in particular but also provinces and cities, regions and regions across the country, especially exports, participate more and more deeply in the global value chain.

Ms. Ly Kim Chi, Chairwoman of Ho Chi Minh City Food Association raised the inadequacies in the supply chain at the seminar. Photo: Xuan Anh -VNA
 

However, the connection and linkage between the production area and processing, consumption and export centers has not really been fundamental, has not gone into depth and has not fully promoted the potential of localities with advantages in developing raw materials as well as has not met the requirements of food processing enterprises in Ho Chi Minh City.
According to Ms. Li Kim Chi, there are many reasons for this trait; In particular, businesses and localities are lacking market analysis and forecast information, data on supply, demand, quality, price ... is very disjointed, very lacking and untimely. In fact, many raw material areas have also been formed, but the infrastructure is weak, there is a lack of data information base to carry out product traceability, build planting area codes. Processing and exporting enterprises mainly buy through intermediaries, depending heavily on the merchant force.
Another reason is that the rate of agricultural and fishery losses after harvest is at a very high level when processing, storing and preserving agricultural products is poor because of the lack of cold storage system. According to statistics, the Mekong Delta currently owns only about 30% of the cold storage volume of the southern region and the cold storage system is most distributed in Long An and a few in Can Tho and Hau Giang. Besides, logistics infrastructure is both lacking and weak, making logical costs very high, while high-season agricultural products are difficult to preserve to keep quality...
 

*Synchronous solution needed

Mr. Nguyen Cong Luan, Deputy Head of Import and Export Management Department, Ho Chi Minh City Department of Industry and Trade said that currently, most logistics services only stop at each individual activity, there is no close connection between transportation methods, so it often causes delays, high costs such as warehousing service fees, waiting time are increased. It can be seen that the logistics service chain linking product consumption and distribution is a bottleneck, hindering the growth of the southern key economic region, requiring timely solutions.

 

Accordingly, it is necessary to soon have effective policy plans and models, develop logistics infrastructure systems; synchronizing the multimodal transport structure system for interregional and international connectivity; connecting a comprehensive supply chain for products in the region from production, harvesting to export customs clearance, towards optimizing logistics costs, increasing competitive advantages for products, creating sustainable output for regional products.

 

Ms. Ly Kim Chi said that developing large-scale raw material areas focused on the basis of sustainable links with processing and consuming enterprises is an inevitable trend of modern commodity agriculture. The most important thing to build a sustainable raw material area is that there needs to be a connection between farmers and enterprises processing and consuming products.

 

The linking of supply areas with processing centers will support processing enterprises to be technologically proactive in cultivation, animal husbandry and processing; forming a large sample growing area associated with the construction of planting area codes, associated with preliminary processing, processing and preservation of large capacity and modernity. Supervise and ensure quality meets standards from production to distribution, meeting market requirements, especially strict requirements from export markets. Close links will also help increase the value of agricultural and fishery products, contributing greatly to the addition and diversification of the supply chain of stable production materials for Ho Chi Minh City in the coming time, improving the competitiveness of Vietnamese enterprises.

 

According to Ms. Ly Kim Chi, in order to promote connectivity and linkage activities in depth, it is necessary to involve not only Ho Chi Minh City but also provinces and agencies in promoting the removal of major bottlenecks today. First, it is necessary to have a shared database system, aiming to build an efficient raw material area to meet the needs of the export market. The food processing industry proposed Ho Chi Minh City to propose the Ministry of Agriculture and Rural Development to act as a focal point for building a common database between the city and provinces; At the same time, the study has a mechanism to support Ho Chi Minh City enterprises to expand investment in developing raw material areas of enterprises in the provinces as leading enterprises in the industry.

Besides, it is necessary to promote the formation and development of cold storage chains and storage warehouses. Specifically, Ho Chi Minh City needs to arrange an appropriate land fund, can link with provinces, have support policies on land rent, loan interest, licensing process ... for cold storage projects to preserve and stockpile agricultural raw materials for deep processing for consumption and export.


Xuan Anh/VNA - bnews.vn

Ý kiến bạn đọc
Chủ đề liên quan
Có thể bạn sẽ quan tâm

ProPak Vietnam, Vietwater expos open in HCM City

The 15th Việt Nam International Processing and Packaging Exhibition (ProPak Vietnam) and the 13th Việt Nam International Water Supply, Sanitation, Water Resources and Purification Exhibition (Vietwater) opened on November 9 at the Sài Gòn Exhibition and Convention Centre.

Efficiency advances in logistics only accessible with digitalisation

With Vietnam’s logistics industry estimated at $80 billion and with an increase of 14-16 per cent annually, the adoption of digital transformation and automation is expected to drive more efficiency in the sector.

Global logistics activities in 2022 and implications for Vietnam

In the first months of 2022, the global logistics market continues to recover and enters a new phase with the expectation of bringing significant growth for both 2022 and the next period. However, in the face of risks from the Russian-Ukrainian war tensions, the outbreak of the disease in China... is raising the risk of global supply chain disruptions, affecting logistics activities. In the face of complicated developments on a global scale, there are still many difficulties in the short term, requiring logistics businesses and shippers to continue to adjust supply chain and logistics models.

Development of logistics centers in Lao Cai to promote import and export

On November 22, in Lao Cai city, the Vietnam Trade Promotion Agency, the Ministry of Industry and Trade and the Department of Industry and Trade of Lao Cai province jointly organized a workshop on promoting import and export activities, promoting the role of Lao Cai on the Kunming - Lao Cai - Hanoi - Hai Phong - Quang Ninh economic corridor.

Evolution or extinction

  Learn more about the adoption of evolving technology in the supply chain. Stewart Brand said: “Once a new technology rolls...

Automated palletising system stream lines process

Tectra Automation has successfully designed, supplied, installed and commissioned a turnkey solution that has simplified the palletising process while increasing...

FM Logistic to manage warehouse operations for gro24/7

Third-party logistics provider FM Logistic recently announced a partnership with gro24/7, one of the largest B2B e-commerce platforms in Việt Nam, to provide warehousing and urban logistics services.

Low imports cause Gasoline shortage

The current partial shortage of gasoline and oil has been caused by wholesalers not importing sufficient amounts, says said Deputy Minister of Industry and Trade Do Thang Hai.

CNL Handled a MAIN TANK about 64 tons to Taiwan.

In November 2022, CNL's Hanoi branch handled a consignment including a MAIN TANK without oil weighing approximately 64 tons. Because this cargo is extremely huge, it is challenging to transport and load the vessel. Besides that, it had shipped 2 containers of OIL LIBRA. The shipment was delivered from a shipper in Hanoi, Vietnam to be consigned to Taiwan on CIF terms. The commodities were loaded on board the vessel from Hai Phong, Vietnam to Kaohsiung seaport, Taiwan.

Proposal to invest in dry ports in the form of PPP

As a later type of development than seaports, but currently dry ports are interested in investing in areas and transport corridors with large container cargo traffic.