On the morning of May 26, 2022, the Vietnam Logistics Business Association (VLA), the Vietnam Chamber of Commerce and Industry (VCCI) Can Tho branch (VCCI Can Tho,) and the Business Forum Magazine co-organized the Forum with the topic: "Improving the Logistics Service Chain for Agricultural Products in the Mekong Delta Region".

Speaking at the opening of the Forum with the topic "Improving the Logistics Service Chain for Agricultural Products in the Mekong Delta Region", Mr. Pham Tan Cong, the Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said that most of the logistics services for agricultural products in the Mekong Delta only stop at each individual activity, there is no close connection between modes of transport. Therefore, it often causes delays, high costs such as warehousing service fees and waiting time.

“It can be seen that, although the Mekong Delta area is a major center in agricultural production of the country, the logistics service chain for agricultural products is a bottleneck, hindering the economic growth of the region, and it is necessary to have timely solutions to remove this bottleneck," said Mr. Pham Tan Cong.

The VCCI Chairman also affirmed that, thoroughly grasping the guidelines and policies of the Government, in order to develop the region and regional linkages in general, and develop linkages in the Mekong Delta in particular, VCCI as an organization representing the Vietnamese business community, has actively coordinated with localities and international organizations and organized many conferences, seminars, and forums to develop linkages in the Mekong Delta region. Thereby, allowing the business community to suggest plans and contribute to State agencies at central and local levels in policy making for the regional economic development.

Speaking in the discussion session: Improving Logistics infrastructure, within the framework of the Forum, contribute to the State agencies, representatives of Logistics enterprises - cold storage infrastructure: Ms. Truong Thi Kim Lien - Director of Gemadept Can Tho made a proposal to remove difficulties and develop cold storage infrastructure for businesses from the success of the cold storage model of Mekong Logistics (belonging to Gemadept's comprehensive integrated Port - Logistics ecosystem).

Ms. Lien said, since its establishment in 2016 to now, with the cooperation between Gemadept Corporation and Minh Phu Seafood Corporation, Mekong Logistics (MKL) has been operating one of the most modern cold storages with the largest scale in Southeast Asia, with an area of 4.8ha - capacity of 50,000 pallets. This is a cooperation model to promote the strengths between manufacturing enterprises and logistics enterprises. Specifically, with Mekong Logistics cold storage, the chain of modern closed seafood processing and preservation factories of Minh Phu Group has been connected to the integrated logistics and port ecosystem capable of multimodal transportation of Gemadept to save time and logistics costs, and at the same time serve the needs of other seafood importers and exporters in the Mekong Delta.

“Besides, MKL has also promptly deployed a successful solar power system to cut electricity costs and move towards a green and clean energy transition in line with the Government's carbon emission reduction orientation. On behalf of Gemadept, I would like to thank relevant authorities for supporting the procedures to quickly put this project into operation”, said the Director of Gemadept Can Tho.

During the discussion session, Ms. Lien also made a number of recommendations on behalf of Gemadept to the relevant authorities to consider:

Although MKL has installed roof voltage system for cold storages, it has not yet met the high operating capacity and grid power is still the main source of energy. Currently, the electricity price applied for cold storage service is the business electricity unit price, so the cost is quite high. We hope that relevant authorities will consider to apply an appropriate electricity price to support logistics costs for businesses.

In addition, the Company is willing to cooperate with other manufacturing businesses such as fish and fruit producers to replicate the successful cooperation model between production enterprises and logistics enterprises, similar to the model Mekong Logistics has worked with Minh Phu Group in the past time. The Company hopes the provinces and ministries will support in term of locations for replication the model  to other provinces and cities in the Mekong Delta region.

The forum also launched a Campaign Committee for the Association for the Development of Logistics and Supply Chain of Agricultural Products in the Mekong Delta to support and connect localities and Logistics enterprises to explore and research investment opportunities. Gemadept is honored to have 2 representatives participating in this Campaign Committee: Mr. Do Minh Chau - Deputy General Director of Mekong Logistics and Ms. Truong Thi Kim Lien, Director of Gemadept Can Tho.

Considered as one of the pioneering business models to develop the logistics industry in the Mekong Delta, Mekong Logistics in particular, and Gemadept's integrated logistics and port ecosystem in general, has contributed to the synchronous development of freight modes, increased connectivity between the Mekong Delta region and the whole country by inland waterways and sea routes, contributing to bringing Vietnamese agricultural and aquatic products to the international market.

Moreover, Gemadept is always looking for more cooperation opportunities between domestic and foreign manufacturers in order to build a warehouse chain for agricultural products, especially a cold chain system that is qualified for preservation, packaging, closed preliminary processing – handling - transporting, thereby limiting the loss rate of post-harvest fruits, agricultural products, and aquatic products, as successfully implemented with the Mekong Logistics cooperation model with Minh Phu Group since 2016.

Also, the Company always focuses on developing high-quality logistics and supply chain human resources in the Mekong Delta region to promptly meet current and future needs.

With all the experience and resources, Gemadept has been and will continue to join hands with the business community to develop service-providing enterprises that are large enough and have strong competitiveness to gradually increase the value of agricultural and aquatic products in the Mekong Delta in particular and Vietnam in general in the global market.