Increasing numbers of international freight forwarders are “setting up shop” or expanding operations in Vietnam, as the country’s strong trade growth continues.
AIT Worldwide Logistics and Dachser Asia Pacific have both recently opened offices in Hanoi, Vietnam’s capital and secondary industrial heartland after Ho Chi Minh City.
Marking the 3PL’s first foray into the country, Illinois-based AIT said its Hanoi operation would be providing international air and ocean products, including full-containerload (FCL), less-than-containerload (LCL) and weekly air consolidations, as well as specialised services such as garment-on-hanger (GOH).
“We are excited about opening our first office in South-east Asia,” said executive vice-president Keith Tholan.
“As a result of ongoing investment in our Asia Pacific network, for us this region’s business is growing more than any other. Expanding into Vietnam boosts our efforts to earn the trust of our customers while striving to fully attain AIT’s long-term company vision.”
AIT also provides cross-border ground services between Cambodia, Laos and Vietnam, and has access to 40,000 sq metres of secure warehousing facilities, providing shippers with bonded, CFS (container freight station) and perishables services and general storage.
Meanwhile, Dachser opened its new branch office in Hanoi to support its Ho Chi Minh City location and to serve US importers.
“Many manufacturers, particularly those in the textile, shoe and electronics industries, have established production facilities in northern Vietnam. Hanoi will allow us to work in closer proximity to our customers in this area,” said Michael Deisemann, managing director air and sea logistics, Dachser Vietnam.
The branch will provide air and sea freight (FCL and LCL) to Europe, Central Asia and the US, and can also offer warehousing and value-added services if needed.
“The expansion of Dachser Asia Pacific is vital for our customers in the US, as a substantial amount of cargo is imported from these areas,” added Frank Guenzerodt, chief executive of Dachser USA.
Indeed, according to Mario Moreno, senior economist at IHS Maritime & Trade, of the 4.2% Asia-US trade growth projected this year, Vietnam will contribute 0.86% – second only to China’s 2.16% share.
“Vietnamese exports to the US have grown at a remarkable pace over the past 10 years, and it is now the second-largest supplier of containerised goods to the US,” he said at the TPM Asia conference in Shenzhen last month.
Furthermore, despite being well-behind China in overall trade volumes, Vietnam’s transpacific trade is actually growing faster.
“Vietnam has outgrown China by almost five times in percentage terms between 2008-15, with China growing by 2% compared with Vietnam’s 9%,” said Michel Looten, maritime director at Seabury.
Throughput at Vietnam’s ports has grown by 10-15% a year over the past five years and, according to the ministry of transport, volumes grew 11% between January and September this year.
The Transpacific Partnership (TPP) is widely expected to further boost Vietnam’s US exports, if or when it is ratified. However, with no guarantee TPP will come into effect, Vietnam has signed a free-trade agreement with the Eurasian Economic Union (EAEU) countries – Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan.
The trade deal, which took effect on 5 October, cut or reduced 90% of tariff lines between the two trading partners and is expected to boost Vietnam-EAEU trade, which reached $3.6bn last year, a year-on-year increase of 6%.
Vietnam’s economy is expected to grow by around 6.5% this year.
