When APL entered the Vietnam market in the 1990s, trade between Vietnam and the US was very limited. Much has changed since APL carried the first US export shipment of apples from Seattle to Ho Chi Minh City on 23 March, 1994, just four days after the trade embargo between Vietnam and the US was lifted.
The US is now the largest market for APL in Vietnam, and each week the global shipping company carries more than 500 containers between the two countries.
APL and APL Logistics, both part of the transportation and logistics group Neptune Orient Lines (NOL), work together to provide world-class integrated transportation and logistics solutions for their customers in Vietnam.
APL has continuously enhanced its position as a pioneer in container transportation, expanding the frequency and quality of services on its worldwide network.
APL carries more than 2000 container shipments every week in Vietnam, with over 100 vessels calling at ports in Asia, the Middle East, Europe and America. Notably, APL is a major carrier on the US-Vietnam route, with a strong market share especially in the key segments of garments and footwear. It is also seeing increasing demand for the transport of furniture, electronics, seafood and coffee, among the largest exports from Vietnam.
“We have been continuously improving transport frequency and transit time on the Vietnam-US route. We opened our own dedicated services in 2004 in Ho Chi Minh City and 2006 in Haiphong, serving US destinations with trans-shipment in Hong Kong. In July this year, APL will launch a new service via the Suez canal that will take only 25 days for cargo from Ho Chi Minh City to reach New York, the fastest such service in the market,” said Mr Tan Hua Joo, APL Vietnam Managing Director.
Mr Tan is very optimistic about the outlook for increased trade between Vietnam and the US. Trade between Vietnam and the US is expected to increase by about 30 per cent this year. APL remains hopeful that WTO entry and the resolution of limits on apparel exports from Vietnam will further promote trade relations between the two countries.
However, such a high growth rate has also produced challenges. Mr. Tan explained, “At present, ports in Ho Chi Minh City are getting very congested, resulting in delays for vessels going to and from the ports. A number of new port projects are underway, but construction is slow, with most new ports only expected to be ready after 2010. Road infrastructure is also getting strained and new investments in this area are urgently required.”
Mr Tan hopes Vietnam will be able to resolve these infrastructure issues quickly and sees tremendous potential for trade to continue to develop at a rapid pace in the next few years. “At present, goods from Vietnam have to be trans-shipped in Singapore, Hong Kong or Taiwan to reach the US. But in the future, when deep-water ports are built in Ba Ria-Vung Tau province, we will be able to transport goods directly to US destinations. This will surely make Vietnam exports more competitive in the future.”
Ha Thanh
Vietnamese
