Transport upgrades facilitate trade in Mekong Delta

by P.V14 December 2015 Last updated at 10:22 AM - Mekong Delta manufacturing and trade activities play an important role in Vietnam’s economic growth.

The region itself contributes over 50 percent of national rice production and 70 percent of fruit production annually. These numbers are expected to increase over the years to come due to the improvement of area transport systems.

Sea crabs, one of the most profitable products of Năm Căn District in the Southernmost Province of Cà Mau, have spread nationwide thanks to upgrades in the road network. As a result, manufacturers and traders in the region can now sell hundreds of kilos of crab every day.

The fast transportation of goods increases our profits. This also helps sellers provide much fresher seafood than before.

In addition to their regional competitive advantage, manufacturers of products in the Mekong Delta have increased production because the cost of transport is no longer such a burden.

"The transportation system has been very helpful for companies like us lately. We are now able to save 5 to 10 percent of our budget, which we can reinvest in our business", said Ngo Huu Canh, Deputy Director, Nguyen Hung Phat Co., Ltd, Soc Trang Prov.

Total investment in the Mekong Delta's transport system reached about 7.8 billion USD during the last five years. This has encouraged localities to promote economic reforms for sustainable growth, as well as raising the Provincial Competitiveness Index.

The improvement and completion of the transportation system raised the Provincial Competitiveness Index of the region. This also attracts more investors, as they have better access to materials and industrial parks.

The Ministry of Transport plans to disburse nearly 13 billion USD to invest in roads, rail, and marine transportation in the country. The ministry has also planned projects to combine modes of transport for the development of key economic zones.

Linking transport systems is important to optimise the effectiveness of the overall system as well as logistics activities.

According to the Vietnam Logistics Association, costs of transport within the country accounts for 15 to 20 percent of GDP, 50 to 70 percent higher than in developed countries. The upgrades to the national transport system will help decrease transport costs, thus boosting the competitiveness of regional products in the era of integration.

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