Logistics accounts for 20 to 25% of Vietnamese agricultural products' cost. Aquacultural businesses resorted to installing their own logistics systems.

As a key agricultural production area in Vietnam, the Mekong Delta exports a considerable amount of commodities every year. However, the entire region currently has over 1,400 logistics service providers, accounting for nearly 4.4% of the total number of logistics businesses in Vietnam.

According to Deputy Minister of Ministry of Agriculture and Rural Development of Vietnam Tran Thanh Nam, logistics accounts for 20 to 25% of Vietnamese agricultural products' cost, with rice accounting for the highest at 30%. These figures have demonstrated the limitations and inefficiency in the logistics sector of the Mekong Delta.

Mr. Dao Trong Khoa, Standing Vice President of the Vietnam Logistics Business Association, assessed that the limited transport capacity and infrastructure pose as significant bottlenecks to businesses looking to invest and expand their operations in the Mekong Delta. Additionally, the current number of professional and methodical logistics businesses in the Mekong Delta is inadequate. It is common practice for aquacultural businesses to equip themselves with their own logistics system in order to support their production and business needs.

According to experts, logistics is a key factor in the socio-economic development of the Mekong Delta region. Solutions to the logistics challenges will also mitigate the loss of post-harvest agricultural products in the region by 30 to 40%.

The Integrated Planning of the Mekong Delta region from 2021 to 2030, with a vision towards 2050 detailed new expectations for the logistics sector in the Mekong Delta. Accordingly, the Mekong Delta will implement eight focal centers. One general center will be established in Can Tho city; four regional focal centers in Ben Tre, An Giang, Kien Giang and Ca Mau provinces and three logistics-related focal centers in Dong Thap, Hau Giang and Soc Trang provinces.

In addition, multiple key and large-scale transport projects are underway or planned in the Mekong Delta. Additionally, a network of trade links will be established throughout the region to connect with Ho Chi Minh City and neighboring localities.

Vietnam’s National Assembly's Resolution No. 45/2022/QH15 on pilot mechanisms and policies to develop Can Tho city has focused on the development of local waterways. Accordingly, Can Tho will implement dredging projects in combination with product recovery through the Dinh An - Can Tho waterway. Subsequently, vessels with a minimum capacity of 10,000 tons will be granted entry into the city's ports.

According to the master plan on the development of Vietnam's seaport system from 2021 to 2030, with a vision towards 2050, Soc Trang province calls for investment in Tran De seaport. This construction project features four berths that can accomodate 160,000 DWT worth of offloading vessels and two container terminals that can accomodate 100,000DWT worth of vessels. The cargo throughput capacity is estimated to be between 30 and 35 million tons per year. Soc Trang province aims to turn Tran De seaport into an international port with an indispensable role in the Mekong Delta's export activities.

In addition to transportation infrastructure for logistics development, Mr. Nguyen Phuong Lam, Director of VCCI Can Tho, highlighted the importance of cold and cool storage systems, and the enhancement of farmers' production capacity. Can Tho city is planning to establish a logistics center that specializes in both air and sea routes.

According to Mr. Lam, the next five to ten years will be the perfect window for logistics development in the Mekong Delta. This opportunity will also help the Mekong Delta become a sustainable, dynamic and highly efficient agricultural economic center domestically, regionally and globally. Concurrently, the region should focus on promoting the development of logistics services to facilitate the development of production, domestic goods circulation, and import and export.

Assoc. Prof. Dr. Ho Thi Thu Hoa, Director of the Vietnam Logistics Research and Development Institute affirmed the importance of logistics infrastructure development. Most notably, warehouses, yards, and cold transport vehicles will help develop the connection between production and post-harvest areas.

Ms. Hoa firmly believes that logistics development policies, especially those for agricultural products, will contribute to improving the value chain of Vietnamese agricultural products on the international market.

According to its draft provincial development plan, Hau Giang province aims to develop three logistics centers between the year 2021 and 2030. Furthermore, this province strives to become the center of industrial production and logistics services in the Mekong Delta by 2050. The establishment of a logistics center will help Hau Giang farmers reduce costs and risks in transportation and post-harvest storage, thereby increasing the value and competitiveness of their agricultural products.

The development of seaports and logistics services in the Mekong Delta will promote agricultural economic development as well as the export of commodities in the entire region.