DHL: Understanding the Complexities of Doing Business in Vietnam and Asia

11:10:05 PM | 2/13/2008

DHL’s international network links more than 220 countries and territories worldwide. More than 300,000 employees are dedicated to providing fast service that exceeds customer expectations. Established in Vietnam in 1989,   DHL is the market leader and one of the successful service companies in Vietnam. On the occasion of lunar New Year 2008, VIB Forum reporter Phan Tran spoke with Mr Tim Baxter- General Director of DHL Express Vietnam
 
Could you summarize the achievements of DHL Express Vietnam in 2007? Are you satisfied with the achievements?
2007 has been a landmark year for DHL Express in Vietnam. It was the year our Joint Venture got into full swing and our network, fleet size and coverage grew exponentially.
 
It was a year when our community spirit shone through with initiatives including helmet drives for school children demonstrating our commitment to the development of Vietnam.
 
On the business side we maintained our strong lead in the express field, and continued to invest in our abilities to better serve customers. To this end we opened new depots and service centres around the country in order to better serve customers in key industrial areas.
 
So we were thrilled with what we were able to achieve in 2007 and this leaves us excited about what 2008 has in store.
 
What has DHL Express contributed to the Vietnam Express sector?
We have invested heavily into the Vietnam market, as we announced in Q2 of 2007, we put aside US$6.5 million specifically for Vietnam investment which went into new service centres, depots and developing the industry’s largest fleet of vehicles operating in Vietnam.
 
With our expertise in express, air and ocean freight, overland transport, contract logistics solutions as well as international mail services, DHL is able to combine worldwide coverage and an in-depth understanding of local markets to facilitate trade around the world.
 
We have launched the Import Express Online (IEO) service, a user friendly web-based solution that automates and supports the Import Express product offering. IEO strengthens the product offering to suit the evolving needs of our customers in the express sector. 
 
We are about to launch eMailShip, which will bring new convenience to our customers, allowing them to fill out paperwork conveniently from their own computer.
 
Could you please share with our readers the reasons for above results?
DHL is the longest established air express company in Vietnam with a successful track record spanning more than 19 years. We understand better than anyone the complexities of doing business in Vietnam and Asia. We have developed long-standing relationships with multinational corporations, governments and small business all over this region. Our expertise in express, air and ocean freight, overland transport and logistics solutions, as well as in-depth understanding of local markets, make us the world leader in trade facilitation.
 
And also, the DHL – VNPT Express joint venture gives us better control over its systems and better integration into the global DHL network. DHL is here to facilitate increased trade after Vietnam’s accession into the WTO.
 
What are the advantages and difficulties for DHL doing business in Vietnam?
It is an interesting period for Vietnam as the government works to implement its commitments to meet the WTO standards. 
The Vietnamese government continues to open doors and increase its support for business operation. They have recognised the importance of foreign investment for the development of the nation, which is the most significant advantage. Moreover, WTO entry helps broaden the economy and creates new business opportunities for international companies like DHL.
 
The entry to WTO triggers increased trade, which leads to the increase in shipments, both within Asia and around the world. DHL is able to develop on this growth, with a fast developing Vietnamese manufacturing sector able to call upon our extensive international network that links more than 220 countries and territories worldwide.
 
In terms of the difficulties this market presents, working on customs procedures and reforms remains one of the biggest challenges, however we are working closely with the government to ensure that reforms are on the way and we look forward to development in this area
Phan Tran