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Mekong Delta continues to develop transport infrastructure

Mekong Delta continues to develop transport infrastructure

Mekong Delta continues to develop transport infrastructure

MEKONG DELTA — The Mekong Delta is working with the Ministry of Transport to improve the local transport infrastructure and thus trade flows, the Cần Thơ branch of the Việt Nam Chamber of Co妹妹erce and Industry has said.

The Trung Lương - Mỹ Thuận Expressway, for example, is expected to significantly speed up product delivery once it opens for traffic this year.

The Ministry of Transport plans to build another expressway between Cần Thơ City and Cà Mau Province.

In the last five years, highways and bridges have been upgraded as have navigation channels in the Hậu river, while the Chợ Gạo Canal in Tiền Giang Province has been dredged.

Lam said: “Poor transport infrastructure is a major obstacle for the Mekong Delta. Implementation of key projects by the Government is still slow.”

The Government has approved an allocation of US$ 二. 五 billion for infrastructure development over the next five years.

Annually the delta exports  一 七- 一 八 million tonnes of goods, but  七0 per cent has to be shipped from major ports in HCM City Bà Rịa - Vũng Tàu Province, which increases transportation costs by  一0- 四0 per cent.

“It costs VNĐ 五 million ($ 二 一 六. 六) to transport  一0 tonnes of catfish from our company in Cần Thơ City to HCM City. If we could use Cái Cui seaport in Cần Thơ city instead, it will cost only VNĐ 一. 五 million ($ 六 五),” Trần Văn Quang, chairman of Southern Fishery Industries Co Ltd, said.

Cái Cui Port was built to handle vessels of  二0,000 tonnes, but now only those of up to  七,000 tonnes can enter it due to the difficult access through small canals.

Investment in transport infrastructure would help the delta cut logistics costs.

An official from the Cà Mau Province transport department called for prioritising investment in inland waterways that are connected with roads to improve transportation throughout the delta and exploit the waterway system linking HCM City with other provinces and cities.

Next month the ministry will seek approval from the Government to build the Trần Đề deep-water port in Sóc Trăng Province capable of receiving vessels of up to  一00,000 tonnes.

The port, not to be funded by public funds, is expected to achieve a throughput capacity of  五0- 五 五 million tonnes by  二0 三0.

Setting up logistics centres

According to the Việt Nam Chamber of Co妹妹erce and Industry (VCCI) and the Fulbright School of Public Policy and Management, logistics activities in Mekong Delta remain largely unplanned.

Mekong Delta continues to develop transport infrastructure

More than  八 五 per cent of its ports are scattered with each having a capacity of handling less than  一0,000 tonnes of cargo annually.

The region also lacks a synchronised transport system, logistics centres, warehouses, and container yards, and companies have to send their products to HCM City for sterilising and irradiating, all of which increase logistics expenses.

Lê Duy Hiệp, chairman of the Việt Nam Logistics Business Association, said the delta is the country’s agricultural export hub but logistics costs are  二0- 二 五 per cent compared to  一0- 一 五 per cent in neighbouring countries.

Besides, for a long time, Delta localities have only focused on stages between the field and factory, but paid little attention to transporting them to ports, shipping, packaging, and inspection despite their decisive role in the competitiveness of agricultural products.

"That is the reason why it is very important to develop logistics centres capable of handling all stages of agricultural production,公众Lam said.

“This would reduce the waiting times and cumbersome procedures.”

Hồ Thị Thu Hoà, head of the Việt Nam Logistics Research and Development Institute, said a national plan for developing logistics by  二0 一 五 had included two second-level logistic centres in the region, but they remain on paper.

Recently the first phase of the Hạnh Nguyên Logistics Centre, a self-contained logistics hub for agricultural exports, began operation in Hậu Giang Province.

Hậu Giang Province targets having five such centres by  二0 二 五.

The opening of a logistics centre will help connect all stages in the agricultural supply chain. — VNS

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