Current Status of the Vietnamese Agricultural Supply Chain and Challenges to Entering Premium Markets

Overview of the Vietnamese Agricultural Supply Chain:

The Vietnamese agricultural sector faces several challenges that hinder its ability to enter premium markets and maintain competitive prices. The supply chain’s current state reflects multiple limitations at each stage:

  1. Seeds and Agricultural Inputs:
    • Farmers often lack knowledge about fertilizers and pesticides, leading to misuse and potential harm to crop quality.
  2. Production:
    • Fragmented land ownership results in small-scale and scattered production. This fragmentation leads to inconsistent product quality and difficulties in achieving economies of scale.
  3. Post-Harvest Handling:
    • For fruits and vegetables, post-harvest losses exceed 30%. Contributing factors include a lack of proper storage facilities, poor transportation, and inadequate packaging. These issues drive up costs and reduce competitiveness.
  4. Processing:
    • Processing technology is outdated, and there is a low level of value addition. The processing sector is characterized by small-scale operations, limited deep processing, and insufficient production of by-products.
  5. Consumption and Export:
    • Exported products often suffer from low quality and price, and there is a lack of branding. Quality control and food safety management are inadequate, and there is a deficiency in market information.

Challenges in Expanding into Premium Markets

The primary challenges in entering high-end markets include:

  • Market Access: Difficulties in opening new markets and overcoming technical barriers, especially in premium markets with stringent quality and food safety requirements.
  • Quality and Safety Standards: Exporting to premium markets requires meeting rigorous quality and safety standards, which many local products currently fail to meet

• Hotline/Zalo: 0931790829 – 0931780829
 Email: cass@cass.vn
• Website: cass.vn
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• Địa chỉ kho CASS: Lô F5, Đường số 6, KCN Hoà Bình, Huyện Thủ Thừa, Tỉnh Long An.

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