Improved road network hooks up trade logistics

DHL Global Forwarding, a division of Deustche Post DHL, is one of the world’s largest providers of air, sea, and road freight services. In August, the firm extended its AsiaConnect road system by adding Hanoi and Shenzhen to its current networks in Penang, Bangkok, and Singapore. This expansion will connect major Asian cities and improve logistic efficiency on a regional level.

Kelvin Leung, CEO of DHL Global Forwarding Asia-Pacific, told VIR that the widened AsiaConnect network is a crucial step in preparation for the upcoming ASEAN Economic Community (AEC), which will become a reality at the end of 2015.

“I’d like to compare the AEC with the European Union. Intra-European trade has grown 70 per cent since the establishment of the EU in 1999, and although there are many differences between the two regions, it is certain that intra-ASEAN commerce will experience a boom after the AEC as well. As a result, DHL Global Forwarding would like to prepare ahead of time for this trade surge by extending the AsiaConnect network,” said Leung.

He further noted that as foreign companies add Vietnam, Thailand, and other ASEAN members to their list of manufacturing bases outside of China, the need for seamless regional logistics is soaring. Moreover, road freight is less expensive than air and faster than ocean freight, making the extended AsiaConnect network ideal for DHL Global Forwarding’s clients.

“Many of our clients, especially manufacturers, have started building their factories in Vietnam. This is expected with the upcoming AEC agreement, along with many other free trade agreements that Vietnam has recently signed, all of which aim to facilitate trade and foreign investment. As a leading logistics provider, DHL will make sure all logistics matters are taken good care of when our clients enter Vietnam,” explained Leung.

Regarding difficulties in enhancing logistics services in ASEAN, Thomas Tieber, CEO of DHL ASEAN & South Asia, admitted that the regional infrastructure was still lacking in many areas. However, he has witnessed remarkable improvements in both air and road transportation recently, and acknowledged that the construction of infrastructure took a lot of time and effort for ASEAN members.

“I believe that infrastructure is actually not as vital as governmental co-operation. Differences in transportation standards, driving licences, and goods categorisation between ASEAN members have slowed down regional logistics services, and I hope to see all of this become streamlined after the AEC,” said Tiber.

Meanwhile, managing director of DHL Global Forwarding Vietnam Clement Blanc noted that with the improved AsiaConnect network, the logistics firm would also help Vietnamese firms reach the global market. According to Blanc, with 20 years of operation in Vietnam and a presence in more than 220 countries, DHL Global Forwarding can be a trusted and helpful partner for Vietnamese companies in their global ventures.

“As DHL has an extensive list of international clients, we can also act as a bridge connecting foreign investors and Vietnamese firms, especially those in supporting industries. With the following AEC and FTAs, we look forward to helping even more Vietnamese businesses integrate into the global supply chain,” Blanc told VIR.