DHL Express Vietnam: Optimistic Toward the Future

 

It has been 3 years since DHL Express started business in Vietnam. Our Joint Venture got into full swing and our network, fleet size and coverage grew substantially. On the business side we maintained our strong lead in the express field, and continued to invest in our abilities to better serve customers. We opened new depots and service centres around the country in order to better serve customers in key industrial areas. 

Last year was considered DHL's most successful business year after 20 years in operation in Vietnam. We still obtained growth exceeding 20 % for the year. Despite the bad affects from world economic recession, DHL was still optimistic about gaining stable growth rate within this year.

 

DHL opened new express centers and set up an express facilities in the northern city of Hai Phong, Vung Tau, Dong Nai and Da Nang to better offer express services to customers in the major cities and surrounding areas. The express centers in the port cities provide customers with both the infrastructure and the support they need for our air express and logistic requirements.

 

The facility that was invested in Hanoi is part of the US$14 million investment program that DHL Express announced in November last year to strengthen its presence in Vietnam.

 

Our investments 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.

 

Our strategy is centered on continual investment in the prime areas of our business such as textiles, apparel, garments, footwear and electronics. These are generally manufactured in the provinces surrounding major cities, which is why we have been investing in new service centers and courier depots, to consistently provide faster transit for our customers which better enables us to facilitate trade for their businesses.

We believe the local market is maturing to a stage where customers are beginning to demand more sophisticated worldwide distribution solutions, in addition to the straightforward door-to-door deliveries of a trade sample.

Local customers are beginning to recognize the value of having an efficient worldwide distribution network at their disposal, and that’s where we come in. Industry-specific value-added services will certainly provide us scope for greater growth.

 

While much has been written about the current economic downturn in Vietnam, we prefer to focus on some key fundamental positives. Vietnam's exports are predicted to grow at 8.8 % in 2010 – solid growth considering the state of the world economy. DHL Express is in the business of facilitating trade with the world, and our ongoing growth and development strategy – highlighted today by the opening of this new Service Centre – is to be able to better connect businesses of Hanoi, and indeed all Vietnam, with the markets of the world.

 

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.

 

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.

DHL-VNPT Co was a joint venture between DHL and Vietnam Post and Telecommunication Corp, with the chartered capital of $5.8 million, in which DHL holds 51 % of capital. At present, the company has invested in construction projects of express service stations in provinces of Dong Nai, Ba Ria-Vung Tau, Hai Phong and continued expanding its network to serve more customers.