DHL Express opens new gateway in Hanoi

December 13, 2023 | 08:00
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Bernardo Bautista, general director and country manager of DHL Express Vietnam, spoke with VIR's Thanh Van about the company's latest investment to facilitate global trade for Vietnam, while deepening its contributions to eco-friendly business practices.
DHL Express opens new gateway in Hanoi
Bernardo Bautista, general director and country manager of DHL Express Vietnam delivers the opening speech at the DHL Express Hanoi Gateway grand opening ceremony

What is the outlook for trade and investment in Vietnam amid the global slowdown?

We remain optimistic about Vietnam's trade growth. Despite the volatile international trade dynamics, the General Statistics Office data as of October reveals a resilient performance. Vietnam's total exports and imports reached $557.95 billion and a trade surplus of $24.61 billion, marking a significant 157 per cent on-year increase.

This positive trajectory is in sync with Vietnam's proactive engagement in pivotal international trade agreements. Notably, in establishing a comprehensive strategic partnership with the US, the country is poised to further expand trade networks.

In terms of investment, Vietnam still presents unique opportunities for prospective investors looking to expand into the country. It is strategically located and close to other major and developing markets in the region. There is also a young, educated and motivated workforce here, which is a huge attraction for many companies to invest in Vietnam.

The country's foreign investment figures look promising – in the first 11 months of 2023, the capital generated by foreign-led projects is estimated at $28.85 billion, an on-year increase of 14.8 per cent.

The outlook for trade and investments remains optimistic, underscoring Vietnam's resilience and strategic positioning in the global economic landscape.

What are the main reasons for DHL Express investing in the new facility in Vietnam?

As trade is gradually normalising after the pandemic, logistics providers like DHL Express are playing an increasingly pivotal role in facilitating interconnectivity and trade flow. In line with Vietnam's promising prospects and rise as a manufacturing hub for the world, we are continuously investing in our aviation network and ground infrastructure in the country.

As a vital cog in the supply chain of most companies in Vietnam, the expansion of DHL's Hanoi gateway will provide our customers with the most efficient, time-definite international deliveries, offering them the best possible access to international markets.

How does the Hanoi Gateway empower Vietnam's trade flows as well as local businesses?

DHL's newly relocated Hanoi Gateway is double the size of the old site. It has an impressive 4,500 square metres of utilisation space, and its peak handling capacity has increased more than four times. The express cargo facility is complemented by a well-established national service network, including another gateway in Ho Chi Minh City, 10 service centres, 17 service points, and 25 dedicated flights per week.

Moreover, it is part of DHL's 50 gateways in Asia-Pacific, supported by the Central Asia Hub in Hong Kong, North Asia Hub in Shanghai, South Asia Hub in Singapore, and the Bangkok Hub.

This strategic investment is a testament to our strong support for customers' growth, bolstering interconnectivity between Vietnam and the rest of the world, and especially opening doors to many opportunities for local enterprises looking to tap into international markets.

DHL Express opens new gateway in Hanoi

How does the new investment reflect DHL Express's sustainable development strategy?

With sustainability at the core of DHL's business, the new carbon-neutral Hanoi Gateway aligns with our Group's net-zero emissions target by 2050.

It features 275 solar panels on the roof, generating an estimated 120kWh per hour, reducing 70 tonnes of carbon emissions per year. The facility also employs high-efficiency equipment, including IE3 motors for conveyors, 100 per cent LED lighting, electric forklifts, and green air-conditioning systems utilizing variable refrigerant volume technology. In addition, its building management system software monitors and automatically controls electrical consumption, further promoting energy efficiency.

This, coupled with DHL's GoGreen Plus service, can help Vietnamese businesses reduce carbon emissions in logistics operations, thereby contributing to Vietnam's efforts to reach its net-zero goal by 2050.

GoGreen Plus is a new service launched earlier this year which utilizes the carbon insetting method and Sustainable Aviation Fuel (SAF), enabling DHL's customers to reduce carbon emissions for time-definite international shipments.

SAF is produced from a range of sustainable feedstocks, such as using cooking oil, maize, waste, hydrogen, or synthetic CO2, and is currently the sole viable option for long-haul flights. The whole process is verified annually by an independent third-party agency, Société Générale de Surveillance.

What is the importance of the Hanoi Gateway in realising DHL's sustainability roadmap?

Our DHL Group announced our sustainability roadmap in 2021, where we indicated that we will be investing up to $7.6 billion in climate-neutral logistics until 2030. DHL Express has also announced several initiatives to build more eco-friendly operations.

GoGreen Plus is made possible in part by three of the largest SAF contracts with BP, Neste and World Energy, under which approximately 1.4 billion litres of SAF are secured to enable the GoGreen Plus service. Equally, DHL Express has also collaborated with Eviation, who will deliver up to 12 electric cargo planes from 2027 onwards.

In Vietnam, we have continuously invested in our ground infrastructure and vehicle fleet to be more energy efficient. Examples such as solar panels, EVs, LED lighting, and green air-conditioning systems enable us to continue delivering the highest service quality to our customers while lowering our carbon footprint.

The inauguration of DHL Hanoi Gateway is an important step in our sustainability roadmap towards a cleaner and greener future. With an array of technologies aimed at maximising operational efficiencies and minimising greenhouse gas emissions, both DHL Express Vietnam and our customers are empowered to make practical contributions to environmentally sustainable business practices.

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By Thanh Van

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