Increasing opportunities for exporting agricultural products to China by rail

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The first train carrying nearly 68 tons of fresh coconuts for export to China departed from Song Than station. Photo: T.D

New transport method for enterprises

Implementing the Regional Comprehensive Economic Partnership (RCEP) Agreement, Vietnam has now officially exported 14 agricultural products to the Chinese market, including fresh coconuts that have just been approved by China for official import from Vietnam.

The main route for exporting agricultural products from Vietnam to China is road transport. However, recently, many export enterprises have switched to a new mode of transport, which is exporting agricultural products and goods to China by rail. This change comes from the fact that the Vietnamese railway industry has continuously improved, upgraded and operated international train routes in recent years.

Notably, recently, at Song Than International Intermodal Station (Binh Duong) - the largest cargo terminal in the Southern region, the first shipment of nearly 68 tons of fresh coconuts originating from Tien Giang province with a value of about 220,000 yuan departed for Guangzhou (China). It is expected that this shipment of fresh coconuts will arrive within 7 days.

Officially putting into operation since September 2023, up to now, Song Than international intermodal station has received many shipments of agricultural products to Yen Vien station (Hanoi), continuing to Dong Dang station (Lang Son), then transferring to international intermodal trains to China and transiting through third countries (Russia, Mongolia, Central Asia and Europe).

FADO iexport Joint Stock Company (FADO) is currently one of the pioneers in exporting fresh coconuts by rail from Song Than station. The company has built a stable raw material area with more than 200 hectares of fresh coconuts in Tien Giang and Ben Tre, ensuring farming standards according to the requirements of importers. Mr. Pham Tan Dat, Chairman of the Board of Directors of FADO Company, said that goods transporting by rail was an effective method in exporting Vietnam's agricultural products to the Chinese market.

In particular, the railway transport method is capable of distributing agricultural products to provinces being deep inland in China such as Chongqing, Wuhan, Chengdu... At the same time, it can expand to other markets such as Mongolia, Kazakhstan, and Russia. This helps enterprises maintain a stable supply and quickly meet the demand of import partners.

Furthermore, compared to other modes of transport such as road, waterway, or air, transporting agricultural products by rail is more cost-effective, has high stability in terms of time, and minimizes congestion at Vietnam-China border gates, which is a common problem when transporting by roads. This ensures that agricultural products, especially fresh products such as coconuts, remain good quality when reaching consumers.

In particular, customs procedures between Vietnam and China were very clear and transparent. The company always received guidance from the Customs authorities on documents, procedures and goods were cleared quickly. For example, the shipment was loaded at Song Than station, but the data had been updated to the customs systems of the two countries. Therefore, when the goods arrived in China, they were cleared quickly and smoothly. With these advantages, the company planned to increase its export volume to 50 containers per month to meet the demand of its partners, Mr. Pham Tan Dat emphasized.

Expanding export opportunities

One of the outstanding products in the list of agricultural products exported from Vietnam to China is fresh coconut. Vietnam currently has over 200,000 hectares of coconut growing area, with most of the products meeting the organic standards of demanding markets such as the US and Europe. This opens up a great opportunity for fresh Vietnamese coconut to dominate the Chinese market, a market with a demand for clean, high-quality agricultural products.

According to Mr. Phan Quoc Anh, Deputy General Director of Vietnam Railways Corporation, the Corporation is making efforts to promote international intermodal transport activities to promote agricultural exports, especially through Song Than station. Currently, the Ministry of Transport is implementing projects to upgrade and renovate Song Than station in the period of 2025-2030. When completed, the cargo receiving capacity will reach 3.5 million tons/year and become the largest cargo terminal in the system of railway stations in Vietnam.

Once the infrastructure for logistics activities is completed and meets all requirements, Vietnam Railways Corporation will plan to exploit Song Than international intermodal station, organize specialized trains running directly from the station to China, transiting to third countries and vice versa.

Despite the great potential, according to some enterprises, exporting agricultural products by rail also faces some challenges. The current railway infrastructure has not yet fully met the requirements of large exporting enterprises. The connection with the Chinese railway system at border gates still needs some improvement. In this situation, the Prime Minister assigned the Ministry of Transport to coordinate with the Chinese side to optimize technical standards, making the process of receiving and delivering goods by rail more conveniently.

However, enterprises need to proactively seek reputable logistics partners, improve warehouse management and storage capacity to ensure the quality of agricultural products when exporting. Enterprises also recommend building modern logistics service centers at major delivery points such as Song Than station to contribute to improving Vietnam's agricultural export capacity.