Vietnam’s growth prompts DHL investment
- Latest News
- Friday, 18 June 2010
DHL Express Vietnam’s volumes grew more than 30 per cent year-on-year in the first quarter of 2010 - and they are tipped to grow even further by year end.
Vietnam’s export revenue jumped 26 per cent year-on-year from January to April 2010 (excluding precious metals) and industrial output grew 13.5 per cent over the same period. Best performing sectors included electronics and computers, which rose 39 per cent to US$985 million, and exports of tools and spare parts, which rose 75 per cent to US$910 million.
John Pearson, chief executive DHL Asia-Pacific and EEMEA said: “The recovery for both Vietnam and DHL is being powered by intra-Asia trade. Sixteen of Vietnam’s top 20 trade lanes are intra-Asia, all of which have rebounded strongly in 2010, especially those in Southeast Asia.
“After shrinking in Q1 2009, the US has also recovered but Asia-Pacific trade lanes dominate both Vietnam’s imports and exports.”
Pearson added: “Vietnam is powering ahead and so is DHL. As a result of Vietnam’s positive attitude to foreign direct investment, more than 100 of our own global customers are already here and more are either are setting up shop in Vietnam and/or increasing their investment in the country. As logistics are key to business and economic success, we go where our customers need to go. So we are increasing our investment in Vietnam to ensure that we keep supporting fast growing companies and industries that play a major role in the country’s overall growth.”
Bolstered by DHL’s strategic investments, Vietnam’s excellence in logistics is a key factor of growth. According to the World Bank’s Logistics Performance Index (LPI), Vietnam is the top logistics performer in its income class. The LPI shows that countries with better logistics performance achieve better GDP, trade growth and diversification, allowing them to “punch above their weight class”.
Vietnam’s superior performance helped Vietnam jump 18 spots to rank 71st in the World Economic Forum’s Enabling Trade Index (ETI) this year, beating India and The Philippines.
Vietnam’s strong recovery is also reflected in DHL’s performance indicators and the company's top 50 customers in Vietnam have registered a combined year-to-date growth of more than 40 per cent in revenues over the same period in 2009. Top performers came from the telecommunications, garments, textiles and footwear industries.”
Vietnam’s GDP is expected to grow between 6.2 per cent and 7.8 per cent per year between 2010 and 2014 as a result of several key factors: Its large, young and highly-literate population, continued success of the government’s FDI-friendly Doi Moi policy, political stability and its proximity to China, Indo-China and Southeast Asia. It joined the World Trade Organization in 2007.
