Logistics increases competitiveness for export agro-products

In order to contribute to improving the competitiveness of Vietnamese agricultural products in the world market, Truong Hai International Logistics and Shipping Company Limited (THILOGI) has invested and perfected the multi-modal logistics service chain to reduce logistics costs and ensure the quality of agricultural products during transportation.

Specializing in logistics activities serving agricultural export

Logistics is always a "bottleneck" that makes it difficult for Vietnamese agricultural exports to compete in price and quality. According to the Ministry of Agriculture and Rural Development, Vietnam's agricultural logistics costs are higher than other countries in the region, accounting for 12 - 38% of product costs. With the context of logistics "eroding" profits, forwarding and transportation businesses must invest in improving capacity and building specialized, quality logistics models for agriculture.

As an enterprise connecting exported agricultural products in the Central region - Central Highlands, Laos, Cambodia, THILOGI focuses on investing and developing a comprehensive logistics service model for agriculture, including: transportation, export procedures, inspection, goods declaration, storage, preservation... Optimal transportation and storage plans and superior after-sales policies help customers save costs and increase the competitive advantage of their products.

THILOGI owns a caravan of transport vehicles and specialized refrigerated containers (40-45 feet), ensuring agricultural products are preserved in compatible temperatures according to regulations for each type. In addition, warehouse and depot systems at agricultural complexes in Laos, Cambodia, Bo Y border gate (Kon Tum), and Le Thanh (Gia Lai) have a total area of 15,500 m2 and warehouse and cold storage area at Chu Lai port of more than 12,500 m2. These infrastructures contribute to perfecting the cold supply chain from preliminary processing, classification, and preservation to transportation and export, helping to ensure the quality of agricultural products and creating convenience for customers.

Last September, THILOGI established 3 road transport branches in Hanoi, Gia Lai and Dong Nai, developing a logistics system across the country, connecting domestic and cross-border road networks. All goods are strictly controlled, promptly meeting the delivery and transportation requirements of customers from Laos, Cambodia, and the Central Highlands region to the South and North; connecting with border gates such as: Kim Thanh (Lao Cai), Tan Thanh, Huu Nghi (Lang Son) or ports: Chu Lai (Quang Nam), Cat Lai, VICT (Ho Chi Minh City) for export.

Developing multi-modal logistics, improving the value chain of export agricultural products

In order to improve the value chain of export agricultural products, in the coming time, THILOGI will plan and upgrade infrastructure, invest in vehicles and equipment in concentrated agricultural areas; connect and forward the transport activities by road and waterway, promote the overall strength of domestic and international logistics.

Along with focusing on exploiting new routes: Bo Keo (Ratanakiri, Cambodia), National Highway 14E (Quang Nam) - which is being upgraded and expanded, THILOGI will put into operation transit stations in Ba To (Quang Ngai) and Phuoc Son (Quang Nam), contributing to connecting the entire transportation route across the country, shortening the time to transport goods from Laos and Cambodia to Chu Lai port. 

In addition, THILOGI continues to invest in more than 50 tractors and semi-trailers (phase 1), arranging vehicles with appropriate capacity for each route.

Mr Bui Minh Truc - General Director of THILOGI said: “We will plan road transport routes, connecting inland road - waterway - rail route and expand air transport, perfecting multi-modal logistics services, helping customers have many choices or combining many services. Currently, road transport services at THILOGI are highly appreciated for their quality with costs 10% lower than the market. At the same time, service fees at Chu Lai port are also 5-30% lower than other ports in the region, supporting businesses exporting agricultural products with optimal costs".

To improve the efficiency of the logistics system in the agricultural value chain, THILOGI continues to invest synchronously in infrastructure; expand and consolidate the warehouse system and linked stations across the country, connecting the agricultural export chain (concentrated raw material areas - preliminary processing stations - factories - cold storage - transportation system - seaport); promote links with major domestic and foreign shipping lines, stabilize shipping rates. Consequently, this will contribute to promoting cohesion and enhancing the role of logistics in increasing the competitiveness of Vietnamese agricultural products in the world market.