DHL plans to invest US$10 million in its logistics business in Vietnam after expanding its expressnetwork in the country over the last two years.
DHL announced today that it will invest US$10 million over the next five years in its newjoint venture in Vietnam. The company signed this agreement with its local Vietnam partnersincluding Oriental Logistics to form a new entity, DHL Global Forwarding (Vietnam) Corporation. Theinvestments will go towards the expansion of facilities, employee training, upgrading ofinformation systems and introducing an enhanced range of services for businesses in Vietnam.
“The newly-launched DHL Global Forwarding (Vietnam) Corporation will offer customers the fullrange of logistics and supply chain services available anywhere in the world to local customers,”said Amadou Diallo, CEO, DHL Global Forwarding South Asia Pacific.
As part of this investment, by end 2009, DHL will also launch the “DHL Fashion and ApparelCenter for Excellence” in Vietnam, its first in Southeast Asia. The center will comprise of a coreteam of industry experts and be responsible for developing tailored solutions and provideconsultancy services to customers in DHL’s biggest fashion and apparel logistics market in SouthEast Asia.
“The fashion and apparel industry is one of the core focus areas for DHL Global Forwarding inAsia Pacific. This industry contributed nearly US$2.6 billion to Vietnam in the first four monthsof 2009 alone, with US$9.5 billion in exports projected for 2009. Despite the economic slowdown,the sector is predicted to grow at 5% for the year which demonstrates some degree of resiliencecompared to other sectors,” added Diallo.
Sam Ang, CEO, DHL Global Forwarding South East Asia, commented: “We are very optimistic aboutVietnam’s growth potential. The country has recorded impressive export growth in the past decade,and even in the prevailing economic climate today, continues to grow its export volumes in variouskey industries – notably fashion.”
As the global leader in air and ocean freight, DHL estimates the Fashion and ApparelLogistics industry to be worth US$3.9 billion per annum in South Asia and South East Asia. Vietnam,Indonesia and Cambodia alone are estimated to account for well over US$2.5 billion in thisfast-growing industry. DHL’s services cover the entire logistics value chain of the fashionindustry.
DHL Global Forwarding (Vietnam) Corporation is a strategic investment by DHL in preparationfor the anticipated future growth while concentrating on opportunities from the highly criticaltextile and apparel, footwear and furniture industries, which are very well established inVietnam. The business is also ideally positioned to assist I.T. and telecommunicationsindustries with their logistical needs as the country grows its manufacturing base in thosefields. Customers will stand to benefit from a stepped up level of service capabilities andaccess to a global range of market leading logistics solutions.
“The US$10 million investment reinforces our commitment to Vietnam significantly,” said DHLGlobal Forwarding Vietnam Managing Director Michel Khaou. “Vietnam is continually seeking toimprove its export economy and its integration with world markets, and certainly DHL GlobalForwarding (Vietnam) Corporation, with our increase in service offering in the coming months isideally positioned to facilitate this.”
DHL Express, through its local joint venture DHL-VNPT Express Ltd, has invested about US$14million in Vietnam over the last two years. The major activities included the opening of a 3,140sqm service centre in Dong Nai in southern Vietnam, a new centre in Danang, new express centres inHai Phong, a major northern port city, and in the southern port city of Vung Tau. The ground fleetwas extended to over 100 vehicles.
