TNT announced today that it has extended its Asian road network into Vietnam in a EUR 6 millioninvestment and aims to link China and South-East Asia by road by the end of this year.
The Asia road network was launched at the end of 2005 to connect Malaysia, Singapore andThailand, and later extended into Cambodia in an overall EUR 2 million investment. It has now beencontinued into Vietnam in a further EUR 6 million investment.
TNT plans to extend the Asia Road Network to reach China through the north-eastern border ofVietnam by the end of 2007. Once completed, the network in Southeast Asia will cover almost 60% ofthe region and link over 120 cities across 4,000 km.
TNT said that with the expansion into Vietnam, it has become the first express provider tofacilitate the movement of goods within the East-West Economic Corridor (EWEC) that covers Vietnam,Thailand, Laos and Cambodia. Vietnam, where foreign direct investment rose by almost 40% to reachUS $10.2 billion in 2006 following its WTO accession, is expected to achieve 8% economic growth in2007-08.
The road service has achieved double-digit growth in overall volumes within a year,particularly among customers with high-value goods such as electronic, automotive and computingcomponents, TNT pointed out. Offering fully inclusive door-to-door, day-definite transportation, itis two to three times faster than sea freight and offers customers significant savings of up to 30%compared to air freight.
“TNT’s expansion into the Greater Sub-Mekong area is logical given the rapid growth of theregion, in particular Vietnam,” said Onno Boots, regional managing director of TNT Southeast Asia.“TNT’s integrated air and road network will be a key differentiator.”
TNT is building up its presence in Asia, particularly in key emerging markets, and hasacquired road express firms in China (Hoau) and India (Speedage).
