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:
- Seeds and Agricultural Inputs:
- Farmers often lack knowledge about fertilizers and pesticides, leading to misuse and potential harm to crop quality.
- 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.
- 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.
- 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- Processing technology is outdated, and there is a low level of value addition.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.
- 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
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