Unlocking Long An’s Export Potential

Boosting export activities, Long An province removes bottlenecks by starting trade transaction offices abroad, increasing connectivity, and reorganizing export activities to help local businesses take advantage of their local strengths to participate effectively in the supply chain of goods.

Going Beyond Connectivity

In the field of agricultural product exports, Mr. Vo Xuan Hoa, Deputy Director of Huy Long An Company, shared that although the company had previously established stable markets in some countries such as Japan, South Korea, and China, there were times when orders showed signs of decline due to market fluctuations caused by the COVID pandemic, including orders for bananas.

Over the past four years, the company had to maintain the “quality standard” of its products while waiting for the right opportunity. Currently, the company sustains more than 700 hectares of banana farms to supply approximately 20,000 tons of bananas every year to these markets.

During the 2023 trade promotion in Long An, the company did not secure any new contracts. However, in the November 2024 trade promotion, they successfully acquired new contracts and memorandums of understanding, with plans for future imports.

Mr. Hoa stated, “No customers placed orders after the first meeting. They visited our farms, and we communicated via email and phone multiple times before they returned to place orders. Through these trade promotions, we have gained a few new customers from Malaysia, Singapore, and the Aeon system of Japan in Hong Kong.” The results of trade promotion efforts this year are quite promising.

In reality, some objective factors have increased transportation costs, protectionist barriers, and risks associated with exchange rates and international payments, disrupting traditional supply chains and reducing overall demand and investment from many partners.

Recognizing the significant impact of these factors on export orders, a Long An cooperative boldly sent a representative to the Middle East to explore wholesale markets, set up an office, and directly sign supply contracts for lemons with multiple countries in the region. This move has stabilized and increased the value of lemon exports.

This proactive market expansion strategy, based on three direct criteria: market approach, inviting partners to visit the material region, and providing door-to-door delivery, has not only improved order efficiency for lemons but also expanded the market for various other local agricultural products.

Mr. Tran Duy Thuan, Director of Ben Luc Cooperative, Long An, emphasized that to achieve this, the supply chain must be tightly managed from the initial stages.

Long An is making remarkable progress. We are producing clean products to sell at higher prices. While the market price is 5,000 VND/kg, our cooperative is purchasing at 15,000 VND/kg. This clearly demonstrates the benefits of joining the cooperative’s linkage chain, which strengthens our negotiating power with businesses and foreign partners. As a result, farmers gain better value for their agricultural produce.” Mr. Thuan shared.

According to the Import-Export Department of the Ministry of Industry and Trade, Long An province essentially meets the three pillars of exports: demand, supply, and export organization. However, as import-export activities increase, there is a corresponding demand for logistics development, especially specialized and professional logistics for the agricultural sector.

Reorganizing Logistics Activities

A few years ago, cold storage service providers in Long An were insufficient and weak. However, out of the six planned logistics centers, two are now operational in Ben Luc district and at the Long An International Port in Can Giuoc district. These centers feature warehouses, bonded warehouses, yards, and other facilities to meet the production and domestic and international trade needs of Long An and the Southern Key Economic Region.

Mr. Trinh Phu Hien, Director of Business at New Era Cold Storage Joint Stock Company in Ben Luc, Long An, shared: “We have the largest project in Southeast Asia at the moment, with a capacity of over 145,000 pallets and the operation of AS/RS technology for automatic cargo retrieval and storage using robots… to optimize costs for businesses.” Mr. Trinh Phu Hien added.

At present, we have been recognized by the General Department of Customs as a specialized bonded warehouse. Strategically located near the Ho Chi Minh City-Trung Luong Highway, with future connections to Ring Road 3 and the Ben Luc-Long Thanh Highway, we will be ideally positioned to connect the Mekong Delta with seaports and major centers like Ho Chi Minh City.

In addition to the docking system, the newly operational logistics center at Long An International Port also offers functions such as loading and unloading, warehousing, preservation, sorting, and packaging of goods. It also provides multimodal transportation and support for customs clearance, paperwork, vehicle maintenance, and fuel supply, among other services.

Ms. Ngo Thi Thanh Vy, Deputy General Director of Long An International Port Joint Stock Company, shared: “In the past, we have served customers from provinces such as Tay Ninh, Binh Duong, and Ho Chi Minh City. Initially, we believe that one of the most critical factors is that Long An International Port is ready in terms of infrastructure to provide comprehensive logistics services at optimal costs for exporting businesses.” Ms. Vy stated.

The leadership of Long An province is committed to continuing to significantly and substantially improve all favorable conditions to facilitate domestic and foreign businesses in trade promotion, expanding cooperation, and developing production and business activities in the province.