Gia Lai will invest and expand logistics services for agricultural products

THANH TUẤN |

Gia Lai – Investing in expanding logistics services will help local agricultural products increase their value to reach out to the world market.

Agricultural exports grow strongly

On February 4, the Department of Industry and Trade of Gia Lai province said that agricultural export activities in the area have continuously grown in both scale and quality.

Currently, the province's agricultural products have reached 40 countries and territories through container shipments and transoceanic shipping vessels.

Gia Lai's export turnover has increased sharply in recent years, from 660 million USD in 2022 to 680 million USD in 2023 and is estimated to reach 800 million USD in 2024.

Of which, coffee is the main product with 210,000 tons, equivalent to 620 million USD; rubber latex reached 830 tons, equivalent to 1.25 million USD; wood products reached 2.1 million USD...

Leading coffee exporting enterprises in Gia Lai have revenue of thousands of billions of VND, typically Vinh Hiep Company Limited, Hoa Trang Import-Export Company Limited, Son Huyen Phat Gia Lai Company...

According to the Department of Industry and Trade, in addition to improving quality and deep processing, the province needs to develop a professional, modern and efficient logistics system.

Logistics services include transportation, storage, packaging, wrapping and delivery, helping to preserve large quantities of agricultural products and avoid damage due to weather.

With a large raw material area, investing in logistics is a key factor helping Gia Lai increase the value of agricultural products, optimize the supply chain and increase competitiveness in the international market.

Cac kho bai de luu chua nong san o Gia Lai con thieu, mot so noi chua du tieu chuan. Anh: Thanh Tuan
Warehouses for storing agricultural products in Gia Lai are still lacking, and some places do not meet standards. Photo: Thanh Tuan

Developing logistics centers in the Central Highlands

Mr. Tran Minh Chau - owner of a coffee processing and exporting enterprise said: "Enterprises with good logistics systems and standard warehouses can store thousands of tons of coffee, passion fruit... When world market prices increase, enterprises will sign export contracts to maximize profits"/

However, according to Mr. Chau, the warehouse system in Gia Lai is still limited, forcing many export businesses to buy and sell quickly, not proactively facing price fluctuations.

When the agricultural market plummets, due to a lack of warehouse space or high storage costs, businesses are forced to sign export contracts at low prices, taking a loss.

To overcome this situation, in 2023, Gia Lai Provincial People's Committee issued Plan No. 1130/KH-UBND on developing logistics services for the period 2023-2025, with a vision to 2030.

According to the plan, Gia Lai province will build two logistics centers. Among them, there is the Tay Nguyen International Logistics Center in Mang Yang district, a class II scale with an area of ​​511 hectares, included in the list of projects calling for investment in the period 2026-2030.

In addition, Pleiku Airport was approved by the Ministry of Transport for planning for the 2021-2030 period, with a capacity of about 4 million passengers and 4,500 tons of cargo/year.

A modern logistics system will help Gia Lai agricultural products access many international markets, creating momentum for socio-economic development and increasing people's income.

THANH TUẤN
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