Supply chain linkage elevating Vietnam's agriculture product values

By Thao Nguyen|21/03/2023 13:33

An effective supply chain will bring success to enterprises and satisfy customers, increase revenue and competition abilities. However, it is also a challenge to companies and enterprises’ management strategies to take advantage of supply chain linkage to make good use of availabilities.

Expanding consuming channels

Normally in Junes and in December is harvesting times of Vietnam’s agriculture products. To avoid inadequacies, many localities has actively finding output for their produces: having consuming solutions ready and bring their produces on e-commerce platforms.

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In addition, there is a supply chain connection from production to consumers. A new agricultural management model named 3F (Feed- Farm- Food with the meaning from Farm to Table) that is able to provide qualified and fresh products to customers.

Through e-commerce platforms, delivery businesses also have solutions to support output for agricultural products, such as J&T Express.

Households, individual business households and cooperatives registered to join two e-commerce platforms and Vosco.vn for connection Postmart.vn, promotion and expanding consumption markets... and formation of digital agricultural production households (with digital booths, digital addresses, digital payment accounts, digital traceability, digital labels on e-commerce platforms).

Provinces and cities, in addition to building database software specialized in e-commerce websites, also have trainings on online business skills, start-up knowledge to promote agricultural product consumption on e-commerce platforms, solving problems of goods being congested, expanding markets and approaching trends of the
digital era.

Consuming mountainous agricultural products

Agricultural products in mountainous areas of our country are quite typical and unique. But inconvenient traffic, traditionally market-style retail and impacts from epidemics prevented them from being widely promoted and from being delivered to customers safely and fast.

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Currently, the Ministry of Industry and Trade has had solutions to support the connection of supply and demand, building an information database for agricultural products in mountainous ethnic minority areas, building a methodical, regular and consistent regional coordination distribution system.

Roles of enterprises in consuming agricultural products are also highly appreciated in helping products that farmers and cooperatives produce, especially in remote, border and island areas easily go through customs clearance with minimum loss and damage. Enterprises also have a way to manage the supply chain, bringing goods to consumers with reasonable prices and best quality.

Enterprises also give trainings to farmers and cooperatives to know how to produce goods to best sell to domestic consumers and to export. And they are also an important force creating the distribution system of the domestic market.

The Ministry of Industry and Trade also organized many events to introduce culture as well as agricultural products associated with the identity of each region, helping to promote and sell typical products of ethnic minorities. Many festivals of mango, longan, litchi and fish from Da River were successfully held with retail systems such as Saigon Coop, Winmart, MM Mega Market and many others.

Focusing on building argicultural brands

According to experts, it is necessary to have highly competitive brands in both domestic and international markets. Brands have great power in contributing to added values of enterprises and products. Therefore, building a brand is an important step that has great influence on the whole supply chain.

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In fact, currently, 85% - 90% of our country’s agricultural products entering the world market must be through intermediaries of foreign brands. Vietname’s enterprises exporting agricultural products to foreign countries have to affix marks of commercial intermediaries in host country’s markets. Many exporters in the Mekong Delta say there are about 10 foreign brands for their own products in a year. However, when the products are in small amount and not wide in variety, along with consumption habits, customers are likely to buy goods from domestic importers, although the prices can be higher.

In addition to those difficulties, advertising costs of foreign agricultural markets are also extremely expensive, formation time is long, and costs of opening a representative office are also quite high. However, overcoming these initial difficulties, building a brand is always necessary to improve the value of Vietnamese agricultural products and widely promote typical and quality products to consumers.



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