Challenges in the Vietnamese Agricultural Supply Chain

General Difficulties in the Fruit and Vegetable Sector:

Seasonality: Harvesting occurs within a short period, contrasting with relatively stable consumption patterns. This discrepancy makes it challenging to predict supply and demand, resulting in fluctuations where products are either oversupplied or undersupplied.
Difficulties in Storage: Fruits and vegetables are perishable, prone to mechanical damage, and experience high post-harvest losses.

Specific Challenges in the Vietnamese Market:

Fragmented Production: Small-scale land ownership leads to fragmented production.
Outdated Mechanical Technology: Low-tech equipment does not adequately support agriculture.

Current Issues in Vietnamese Agriculture:

Inconsistent Product Quality: Low uniformity in product quality.
Inefficient Techniques: Low standards in cultivation, harvesting, and distribution affect post-harvest quality. Products are often harvested before reaching full ripeness to ease storage and transportation, resulting in inferior quality.
Difficulty in Market Prediction: Fragmented production makes it hard to forecast market needs. This leads to increased procurement costs and opportunities for price manipulation, reducing competitiveness and damaging the reputation of Vietnamese products both domestically and internationally.

Proposed Improvements:

Reduce Post-Harvest Losses: Implement better storage solutions and processing methods.
Centralize Post-Harvest Handling: Standardize procedures for sorting and quality control to lower procurement costs and improve uniformity.
Enhance Product Transparency: Maintain clear traceability of each batch to improve trust in agricultural products.
Accurate Market Forecasting: Establish robust systems for accurate data collection and market prediction.
Brand Building: Create a foundation for developing strong product brands.
Improve Market Interaction: Increase communication and feedback between the market and producers.

CASS Ltd Company