Vietnam, which achieved a GDP growth rate above 8% in 2025 and is rapidly expanding its farm exports. But behind the strong figures, a structural problem—agricultural logistics costs accounting for 20–25% of production cost—is viewed with concern among industry people. This cost constitution, high even compared with Thailand and India, erodes price competitiveness and threatens the sustainability of export expansion.
The current state: what is how expensive
At the "Agricultural Logistics Investment Promotion Seminar" held in Ho Chi Minh City on March 20–21, 2026, several industry groups and companies reported on the reality.
| Challenge | The reality |
|---|---|
| Logistics cost ratio | 20–25% of production cost (higher than Thailand and India) |
| Post-harvest loss rate | 10〜12% |
| Value-added processed-goods ratio | Stays at 12–17% of all exports |
| 2025 GDP growth rate | Over 8% |
Root causes: three structural problems
1. Underdeveloped cold chain
For items that require temperature management—fresh fish, produce, frozen foods—the infrastructure to maintain temperature during transport is lacking. In long-distance transport from the Mekong Delta to the ports in particular, quality deterioration from temperature deviation occurs frequently. As a result, a post-harvest loss rate of 10–12% has become the norm, and the very volume of goods that can be exported is shrinking.
2. Fragmentation of the supply chain
With many small farmers, a multi-stage intermediary structure of region → collector → wholesaler → exporter is a breeding ground for rising logistics costs. The margin pile-up at each stage is reflected in the final export price.
3. Infrastructure gaps
Narrow rural roads, chronic congestion in major cities, and a shortage of complex logistics hubs specialized for farm-goods transport overlap. Even a major distributor like San Ha Co., Ltd., which handles more than 200 tonnes a day with over 150 transport vehicles, still cannot fully cover all demand.
Analysis from experts and industry groups
Dr. Nguyen Anh Tuan, chairman of the Vietnam Association of Foreign-Invested Enterprises (VAFIE), pointed out that "with the current logistics-cost constitution, profit margins will not improve even if export value rises." Ta Thuy Hang, vice-chair of the Vietnam Farm Enterprises Association (VFAEA), stressed that "building an integrated temperature-management chain from the region to the export port is urgent."
Dr. Tran Minh Hai, vice-chair of the Vietnam Rice Sector Association, warned that for rice exports too, logistics costs sway competitiveness. Q1 2026 rice exports flat in volume with export value down 7.8%, and the figures bear out the seriousness of the logistics-cost problem.
Practical takeaways for farm buyers and trading companies
For Japanese farm buyers and trading companies to optimize the sourcing cost of Vietnamese farm goods, they need to design their suppliers and transaction schemes with an understanding of the logistics structure. Specifically, please consider the following.
- Contracts directly with farmers and agricultural cooperatives: by eliminating multi-stage intermediation and building a direct-from-region scheme, there is room to cut costs 10–15%. However, establishing quality-management and inspection systems is a precondition.
- Joint investment in building out the cold chain: by concluding shared-use contracts for refrigerated warehouses and vehicles with exporters and Vietnamese logistics firms, post-harvest loss can be reduced and the effective sourcing cost lowered.
- Using processing facilities near the export port: by using farm-goods processing facilities within the export processing zones (EPZ) near Ho Chi Minh City and Hai Phong, shorter transport distances and lower refrigeration costs can be realized at once.
- Using inland waterways: for Mekong Delta goods, inland waterway transport is in many cases cheaper than road transport. Direct contracts with waterway carriers are worth considering.
Policy trends: what is about to change
The Vietnamese government is promoting the following measures.
- Promoting the development of modern agricultural logistics hubs and storage facilities
- Supporting the introduction of supply-chain management using blockchain, IoT and AI
- Accelerating the development of multimodal logistics infrastructure (road, waterway, rail)
- A policy of maximizing use of the Mekong Delta's inland waterways
If these measures are realized, the price competitiveness of Vietnamese farm goods is expected to improve significantly over 2028–2030. Seafood exports of 2.62 billion dollars in Q1 2026, up 13% year on year— this strong result also has an aspect that reflects the improved competitiveness of the seafood sector, where logistics improvements are advancing.
The "next wall" of export-value growth is cost-structure reform
Vietnam's farm exports have grown in both volume and value, but to improve profitability, a fundamental reform of the logistics-cost structure is essential. The current state in which the processed-goods ratio stays at 12–17% is also closely linked to constraints in logistics and storage infrastructure.
For Japanese trading companies and buyers, now—as logistics infrastructure development advances—is a good opportunity to review their farm-goods sourcing scheme in Vietnam. By combining means such as joint investment in logistics firms, building direct-from-region schemes and using processing facilities, they can draw out more of Vietnamese farm goods' competitive advantage.
Sources
The Investor (2026): Vietnam’s agricultural boom hobbled by high logistics costs, experts urge system overhaul
