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Regional links key for south Vietnam trade

Promoting regional linkage from production to distribution is essential to turn the country’s southern part into a trade hub.
Regional links key for south Vietnam trade ảnh 1Illustrative image (Source: VNA)
Hanoi (VNA) - Promotingregional linkage from production to distribution is essential to turn thecountry’s southern part into a trade hub.

Efforts have been made to establishregional linkage in recent years but there were bottlenecks to be removed tocreate breakthroughs, especially in developing a supply chain and logistics.

For example, in the agricultural sector, aslocal products were of inconsistent quality coupled with a shortage ofestablished brands and planning, farmers were still faced with the pressure ofselling their products at low prices from intermediaries and traders.

According to Le Minh Duc, director of theLong An provincial Department of Industry and Trade, many products were stillstruggling to find stable markets.

This was because of a lack of coordinationbetween producers and distributors.

Major retailers such as Saigon Co.op, LotteMart, Aeon Vietnam and Big C promised to give priority to Vietnamese productson their shelves but they also had strict quality control requirements, expertssaid.

It was important to improve product qualityand promote the regional linkage from production to distribution.

In addition, reducing intermediaries to cutproduct prices to end-users and improve competitiveness was also an importantmeasure.

The southern provinces and cities werehastening efforts towards trade promotion to expand markets while developingtrade infrastructure system, including supermarkets and wholesale markets toensure a convenient circulation of goods.

Nguyen Minh Toai, director of the Can Thomunicipal Department of Industry and Trade, said that provinces and citiesshould raise solutions to support farmers to join in the production chain anddevelop a plan that focuses on products of strength.

In addition, provinces and cities in theregion should join each other to share market information to ensure productionto meet the market demand and prevent speculation or trade frauds.

According to Vu Kim Hanh, chairwoman of theVietnamese High-Quality Product Business Association, a quality control systemmust be set up to ensure quality from raw material, processing to consumption.

The southern region includes 20 provincesand cities, accounting for 60 percent of the country’s industrial productionand 57 percent of goods and services value.

The region planned to reach a total retailsale of goods and services of nearly 2 quadrillion VND (8.8 billion USD) thisyear, or a rise of 11.5 percent over 2016, and an export revenue of 105 billionUSD (up by 11.6 percent).-VNA
VNA

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