Logistics boosts competitiveness for agricultural exports

VCN - In order to contribute to enhancing the competitiveness of Vietnamese agricultural products in the global market, Truong Hai International Logistics Limited Liability Company (THILOGI) has invested in and perfected a multi-modal logistics service chain to reduce logistics costs and ensure the quality of agricultural products during transportation.
Logistics boosts competitiveness for agricultural exports
THILOGI owns a fleet of specialized transport and refrigerated containers (40, 45 feet)

Specializing in logistics operations serving agricultural exports

Logistics remains a bottleneck that makes it challenging for Vietnamese agricultural products to compete in terms of price and quality.

According to the Ministry of Agriculture and Rural Development (MARD), the logistics costs for agricultural products in Vietnam are higher than those in other countries in the region, accounting for 12 - 38% of the product's cost.

Faced with the profitability erosion caused by logistics issues, freight and transport companies have to invest in enhancing their capabilities, building specialized, high-quality logistics models for agriculture.

As a company connecting agricultural exports in the Central Highlands, Laos, and Cambodia, THILOGI focuses on investing and developing a comprehensive logistics service model for agriculture. This includes transportation, export procedures, inspection, cargo declaration, storage, and preservation. Optimal transport and storage solutions, along with excellent after-sales policies, help customers save costs and enhance the competitiveness of their products.

THILOGI owns a fleet of specialized transport and refrigerated containers (40, 45 feet), ensuring that agricultural products are preserved at temperatures suitable for each type. Additionally, the company has a warehouse system, depots at agricultural complexes in Laos, Cambodia, Bo Y border gate (Kon Tum), and Le Thanh (Gia Lai) with a total area of 15,500 m2, and cold storage at Chu Lai port with an area of over 12,500 m2. This contributes to completing the cold supply chain from processing, sorting, preservation to transportation, export, ensuring the quality of agricultural products and convenience for customers.

Logistics boosts competitiveness for agricultural exports
Chu Lai Port, with over 12,500 m2, plays a crucial role in completing THILOGI's supply chain

In September, THILOGI established three road transport branches in Hanoi, Gia Lai, and Dong Nai, expanding its nationwide logistics network, connecting domestic and cross-border road networks. All goods are closely monitored to meet the timely delivery requirements of customers from Laos, Cambodia, and the Central Highlands to both the North and the South. The company connects with border gates such as Kim Thanh (Lao Cai), Tan Thanh, Huu Nghi (Lang Son), and ports like Chu Lai (Quang Nam), Cat Lai, and VICT (Ho Chi Minh City) to serve exports.

Developing multi-modal logistics and enhancing the value chain of agricultural exports

To enhance the value chain of agricultural exports, THILOGI plans to upgrade infrastructure and invest in vehicles and equipment in concentrated agricultural areas. It aims to connect road and waterway transportation activities, harnessing the overall strength of domestic and international logistics.

Logistics boosts competitiveness for agricultural exports
Chu Lai Port - gateway for transshipment of goods in the Central region, Central Highlands, Laos, and Cambodia

Together with the exploitation of new routes, such as Bo Keo (Ratanakiri, Cambodia), and the upgrading and expansion of National Highway 14E (Quang Nam), THILOGI will operate transfer stations in Ba To (Quang Ngai) and Phuoc Son (Quang Nam). This contributes to the nationwide transportation network, reducing the transportation time of goods from Laos and Cambodia to Chu Lai port. Additionally, THILOGI will invest in over 50 tractor-trailers and semi-trailers (Phase 1), allocating vehicles with appropriate capacity for each route.

Bui Minh Truc, CEO of THILOGI, stated: “We will plan road transport routes, connect road, waterway, and railway transportation, and expand air cargo transportation to complete a multi-modal logistics service. This provides customers with more choices or the ability to combine multiple services. Currently, THILOGI's road transport service is highly regarded for its quality, with costs lower than 10% compared to the market. Moreover, service fees at Chu Lai port are 5-30% lower than those at ports in the region, supporting agricultural exporters with optimized costs.”

To enhance the efficiency of the logistics system in the agricultural value chain, THILOGI will continue to invest comprehensively in infrastructure, expand and complete its warehouse and interconnection systems nationwide. It aims to connect the agricultural export chain (concentrated raw material areas - preliminary processing stations - factories - cold storage warehouses - transportation systems - seaports) and strengthen ties with major domestic and international shipping companies, stabilizing transport costs. This, in turn, contributes to fostering cohesion and enhancing the role of logistics in increasing the competitive capacity of Vietnamese agricultural products in the global market.

By Hoa Nguyen/ Ha Thanh

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