Vietnam: Fluctuations in logistics costs make it difficult to export agricultural products

Published 2024년 4월 3일

Tridge summary

Vietnam faces significant challenges in its logistics sector, particularly in agricultural exports, with transportation costs accounting for over 60% of total logistics expenses, which is double the rate of other countries. This has led to logistics costs exceeding 30% of revenue for some businesses, exacerbated by reliance on foreign shipping companies and volatile shipping rates due to geopolitical tensions. Despite these challenges, Vietnam is emerging as a significant player in the logistics industry, with over 200 routes to Europe and the US, marking its growth and potential in exporting goods. Industry experts emphasize the need for Vietnam to diversify logistics centers, adopt modern technology, and develop its logistics infrastructure to reduce dependency on foreign shipping lines and enhance the competitiveness of its exports.

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Original content

Source: baotintuc.vn Vietnam attracts investment in logistics infrastructure development. Photo: VNA Logistics costs eat away at profits According to statistics from processing and exporting enterprises, currently transportation costs on Vietnam's total logistics costs are at a very high level, up to more than 60%, about 60%. twice as much as other countries. This is a very large number. As an agricultural export enterprise that has used air transport from the beginning, Mr. Nguyen Dinh Tung, Chairman of the Board of Directors of Vina T&T Group, said: Logistics accounts for more than 30% of the enterprise's revenue, not including other services. Cost of importing fruit, irradiation... Therefore, the business has very little profit left. Furthermore, many agricultural export enterprises depend on foreign airlines, and prices vary depending on the airlines. As for transportation by rail, road, waterway... fruits are easily damaged, the already low competitiveness is even lower. With ...

Source: AgroInfo.vn