DHL will continue its double-digit growth in Vietnam

DHL is celebrating its 25th anniversary in Vietnam this year. What have been your most significant achievements and have you achieved your growth and expansion goals?

Our most significant achievement is our business model. We have regularly reported double-digit growth and hold significant market share. We have earned this position from our bold move into the country in 1988 and our partnership with VNPT [Vietnam Post and Telecommunications Group], signed immediately after Vietnam’s WTO accession in 2007.

You once said that DHL’s growth was basically parallel Vietnam’s GDP growth. As the economy has slowed over the last few years, what challenges have you faced?

From the moment we entered the market we had a long-term vision, and that led us to successful growth for a long time. There are always ups and downs in any economy and we are not worried about the current downswing. In fact, we are feeling strong thanks to our loyal customer base and excellent managers and employees. In terms of services, we are way ahead of the competition in terms of quality and timeliness of deliveries. We are still expecting double digit growth, and have already seen the signs of overall economic recovery.

Can you give us an overview of DHL’s investments in Vietnam and what your future injections will go toward? Will your business here be different from other regional markets?

Over the last few years we have invested quite a lot, particularly in infrastructure. We have built service centres, airside facilities at airports, and gateway delivery arrangements. We’ve also invested a lot into HR training. Our total investment so far is around $25 million, and we plan to expand this.

At the moment we are building a new complex at Tan Son Nhat Airport that will also serve as our headquarters. It’s probably one of the largest facilities in our industry and will be a gateway and service centre.

You are teamed up with VNPT and this is working quite well for you, but as part of Vietnam’s WTO commitments foreign express delivery firms are free to set up subsidiaries. Will you go with this model in the future, rather than a joint venture? Will this opportunity make competition fiercer?

I’m not worried about the market being more open or about new competitors. We have invested strategically in Vietnam to build a strong foundation and a more open market is just an opportunity for us to facilitate growing trade between Vietnam and the rest of the world. Some things may change, but the fundamental growth is still there.

Through our relationship with Vietnam Post, we also want to be able to work closer with them because you know that we are part of the German Post Group, and we are part of the global postal union. I think DHL could help Vietnam Post to develop its business in the country and internationally. So, it’s important for our relationship to continue to grow and benefit both

I think we are also in a great position thanks to our local knowledge and experience. We love our partner and they deserve the credit for originally giving us market entry. They have also facilitated our relations with the government and people of Vietnam. We plan to continue this relationship over the long-term and hope they feel the same way.

What is your forecast for the next 25 years of DHL in Vietnam?

Vietnam is one of Asia’s bright rising stars and there is huge growth yet to be seen as it continues to open to international trade and foreign investment. We are a gateway and facilitator of trade worldwide and as the country continues its path upwards, so will we. Our country manager Christopher Ong promised me continued double-digit growth today, and I am confident he will succeed.

DHL’s Vietnam history

1988: hello Vietnam

1989: opened Hanoi representative office

1994: opened Danang representative office

1998: launched DHL jumbo box

2000: launched DHL import express worldwide

2003: rebranding DHL as DHL Express

2006: launched first direct flight service Saigon-Bangkok-Saigon

2007:
- Joint venture DHL-VNPT Express Ltd

- Opened Dong Nai service centre

2008: opened Haiphong and Vung Tau depots

2009: opened Hanoi service centre

2010: relocated Saigon gateway to airside

2011:   
- Relocated Hanoi gateway to Noi Bai Airport

-Opened Long An depot

2012:   

- Launched new direct flight Saigon-Hong Kong-Saigon (Boeing 727)

- Fleet modernisation

- Expanded Danang depot

2013:   

- Upgraded plan capacity to Airbus A300-600

- 45 minutes later cut off in Saigon

- Fleet modernisation: 40 new scooters