E-commerce platform fees too high, shipping costs double order value

At the 10th national farmers’ forum 2025, where Chair of the Vietnam Farmers’ Association and Minister of Industry and Trade ‘listened to farmers’, held on October 1, Luong Quoc Doan, chair of the association, reported that Vietnam is striving for $70 billion worth of turnover from farm, forestry, and fishery exports in 2025 and $100 billion by 2030.

However, to reach these targets, Vietnam must overcome many challenges amid intensifying global trade competition, particularly when the US imposes retaliatory tariffs on multiple countries, including Vietnam.

Dien emphasized that while production is the foundation, the market and trade are the extended arms that help Vietnamese agricultural products go further and be sold at higher, more sustainable value.

“Today, any recommendation, especially from farmers and businesses, will be listened to. We are ready to discuss and jointly resolve issues,” the minister affirmed.

During the discussion, numerous issues regarding digital technology application in market connectivity were raised. Notably, local leaders and influencers tend to join livestreams to support farmers in selling products, but the sustainability of this model needs consideration.

Farmers expressed a desire for the Ministry of Industry and Trade (MOIT) to devise solutions to elevate OCOP products to international markets via e-commerce platforms.

According to Le Hoang Oanh, director of the Department of E-commerce and Digital Economy, taking products global requires more than just promotion or setting up online stores, but quality is the deciding factor. To export products, Vietnamese farmers and exporters need to study what foreign markets need to meet their standards.

If quality isn’t ensured, exporting becomes extremely difficult. She cited an example of a livestream selling honey in Lai Chau, where only one business met the required standards.

Each year, the trade promotion agency organizes supply-demand matching events to connect OCOP producers with FDI companies and domestic retailers to help farmers sell their goods. Tens of thousands of farmers have sold products through livestream platforms.

However, Dien cautioned that farmers are overly focused on exports while neglecting the domestic market. With a population of 100 million, domestic demand for agricultural products is significant.

"On October 24, we will hold an international trade fair and invite farmers to bring their products to the fair," the minister said. "Many foreign partners will attend, and if products meet quality standards, have clear traceability, sufficient quantity, and proper packaging and branding, farmers will have opportunities for quick and smooth sales."

Currently, the agricultural economy development demands planning and developing cultivation areas to meet market and consumer needs, focusing on green and clean products. The minister stressed that the era of "two vegetable beds, two pig pens" is over, and if products aren’t clean, they won’t sell.

Meanwhile, Chao Thi Yen from Goong Cooperative (Lao Cai), complained that e-commerce platform fees are too high, and transport costs often double the value of goods, while agricultural profits remain low. Selling at low prices leads to losses, but raising prices reduces competitiveness.

In reply, Oanh stated that market-driven factors are hard for the state to directly intervene in. However, the minister has tasked the Department of E-commerce with negotiating agreements with major platforms to provide support. Farmers, in turn, need to improve quality, scale up production, consolidate shipments, and combine transport to reduce logistics costs.

Seven years seeking opportunities in Vietnam without success

Agricultural expert Nguyen Thi Thanh Thuc remarked that Vietnam’s high logistics costs stem from fragmented production infrastructure.

She cited Phuket’s market in Thailand, which mandates 51 percent of products sold to be OTOP, making it a bustling shopping destination for domestic and international tourists. She proposed that MOIT study a similar market model in Vietnam to help farmers sell OCOP products more effectively.

She also suggested establishing high-tech agricultural industrial clusters soon. "A Korean partner shared that they spent seven years seeking opportunities to build an agricultural industrial cluster in Vietnam but failed, ultimately moving to China due to better infrastructure and supportive policies," she said.

Dien emphasized the need to enhance production capacity toward high quality and sustainability, proactively applying science and technology in production, processing, and consumption. He encouraged private enterprises and cooperatives to invest in logistics centers, cold storage, preservation systems, and post-harvest processing lines to reduce losses and increase the added value of agricultural products.

Tam An