AEC integrates logistics network

Foreign logistic firms are expediting their efforts to tap into the market’s growth following the establishment of ASEAN Economic Community.

 

aec integrates logistics network
Logistics firms have been expanding their networks to capitalise on the AEC-Photo: Le Toan

Clement Blanc, managing director of DHL Global Forwarding Vietnam, told VIR that one key aspect of achieving the AEC is to create an integrated transport market to increase connectivity and help spur ASEAN’s goals of economic integration.

Logistics is a priority sector for ASEAN integration, and the Roadmap for the Integration of Logistics Services under the AEC makes firm commitments to liberalise ASEAN’s logistics sector including everything from cargo handling, storage, and warehousing, to courier services, customs clearance, and international freight.

As road freight is more cost-effective than air freight, and faster than ocean freight, DHL Global Forwarding has expanded its road freight network in ASEAN in anticipation of a boom in trade in the AEC in the years to come.

The firm first launched its road freight network in 2011 connecting Singapore, Malaysia, and Thailand, which now links to the existing Vietnam-China connection. Its latest integrated road freight network links all five countries and caters for the further expansion of trade and production networks across the region.

According to Blanc, Vietnam is an exciting country to be in right now – booming with investment especially in the hi-tech sector. It has a young workforce, and a reform-minded government. From a logistics provider’s perspective, the firm is particularly satisfied with the consistent alignment with international best practices.

“Vietnam is the only ASEAN country which has a truly paperless customs environment. All this has been done within a relatively short time frame. DHL will continue to work with the government on all aspects of customs and trade facilitation reforms,” he said.

Another foreign logistics firm, DB Schenker, has also witnessed an increasing volume following the establishment of the AEC. The last few months have been especially exciting for the firm, as it has received many enquiries from its international customer base about trade opportunities in the region, DB Schenker claims.

Christoph Matthes, managing director of DB Schenker in Vietnam, told VIR that the AEC is a critical enabler for the entire region because of the enormous market of over 600 million consumers. The ten member states have perse economic profiles, and it will be interesting to see how the journey to full economic integration develops.

Indeed, the AEC is a great opportunity for Vietnam to expand its international trade prospects. Vietnam is located at the heart of the ASEAN region and is well positioned to enjoy the benefits of the single market and production base.

“To prepare ourselves, we will focus more and more on developing cross border logistics solutions. A good example is our Landbridge Asia road transport service where we take freight by truck to cross the borders of our neighboring countries,” he said, adding that, “We expect that the demand for this type of service will grow significantly in light of ASEAN’s substantial tariff reductions.”

DHL-VNPT Express is also uniquely set up for ASEAN with its newly expanded South Asia Hub in Singapore and another hub in Bangkok. Currently, the firm’s intra-regional Asia Air Network is one of its key strengths. DHL-VNPT Express says it benefits from having the fastest network intra Asia-Pacific, as the firm is the only service provider that can provide same-day uplift on its own aircraft for a next day delivery across most of the region.

According to George Berczely, the firm’s general director, participation in the AEC will give Vietnam more opportunities to attract foreign direct investment, expand its export markets, and help boost the capabilities of its logistics service providers through physical connectivity, such as hard infrastructure for transport within the regional network. However, it should also be noted that the AEC will undoubtedly intensify competition within the region.

“For us, the AEC brings about more opportunities than competitive challenges, and we are continuously investing to capitalise on these opportunities. We are seeing strong growth within ASEAN, which has been the trend for a few years now,” he said, adding that, “Our primary focus is the expansion our air network and ground network.”

DHL-VNPT Express has recently expanded its Saigon gateway by 50 per cent, and plans to open more facilities across the country over the next few years to further its reach and improve services across the region.

Source: VIR

Related News

GDVC effectively performs ASEAN Single Window for implementing Digital Customs

GDVC effectively performs ASEAN Single Window for implementing Digital Customs

VCN - The General Department of Vietnam Customs (GDVC) has actively performed works related to digital transformation and implementation of Digital Customs. One of them is to effectively implement the ASEAN Single Window to create a foundation for implementing Digital Customs.
Elevating the core values of the national brand

Elevating the core values of the national brand

VCN - Vietnam is consistently recognized as one of the most dynamic and open economies in the world, becoming the fourth-largest economy in ASEAN and the 40th globally. However, in the context of a competitive economy, the issue of branding remains a weakness for Vietnamese enterprises.
Vietnam Customs actively promotes cooperation activities

Vietnam Customs actively promotes cooperation activities

VCN – In the first quarter of 2024, international cooperation and integration activities were actively implemented and planned by Vietnam Customs. Notably, Vietnam Customs has urgently completed plans for the 33rd meeting of the ASEAN Directors-General of Customs in June in Phu Quoc (Kien Giang province).
Vietnam Customs with outstanding results in ASEAN cooperation

Vietnam Customs with outstanding results in ASEAN cooperation

VCN - Along with the integration trend, Vietnam Customs is always an active member in implementing regional customs cooperation initiative programs regarding international cooperation on customs within the Association of Southeast Asian Nations (ASEAN) community.

Latest News

Imports and exports achieve US$239 billion by the end of April

Imports and exports achieve US$239 billion by the end of April

VCN - The import-export turnover in April witnessed a slight decrease compared to the previous month but it is still high with more than US$60 billion.
Spending more than US$31 billion for importing computers and electronic products in 4 months

Spending more than US$31 billion for importing computers and electronic products in 4 months

VCN - Computers, electronic products, and components are the group of imported commodities with the largest scale in the country.
Multi-dimensional picture of textile and garment enterprises

Multi-dimensional picture of textile and garment enterprises

VCN - Despite a quite positive start in the first quarter of 2024, the textile and garment industry has still faced many challenges from new requirements of importing countries, requiring enterprises to have proactive solutions to respond.
Promoting Vietnamese pharmaceutical industry

Promoting Vietnamese pharmaceutical industry

Vietnamese pharmaceutical market grew from $2.7 billion in 2015 to $7 billion in 2022 and is forecast to reach more than $10 billion by 2026.

More News

HCM City to host iTech Expo 2024 in July

HCM City to host iTech Expo 2024 in July

The first-ever international technology exposition (iTech Expo) 2024 will take place in Ho Chi Minh from July 10-12, featuring 500 booths from leading technology countries and territories around the world, heard a press conference on May 20.
Pangasius exports are forecasted to bounce back at the end of the year

Pangasius exports are forecasted to bounce back at the end of the year

VCN - It is forecasted that pangasius exports is forecasted to be better from the third and fourth quarters of 2024, leading to the uptrend being adjusted to increase by at least about 10% compared to the current price.
Exports to the US reaches over US$6 billion

Exports to the US reaches over US$6 billion

VCN - The US continues to be Vietnam's largest export market and achieves positive growth.
Market diversification key for enterprises to expand exports

Market diversification key for enterprises to expand exports

Vietnamese enterprises need to meet quality requirements and rules of origin, increase value-added content, and diversify markets, as production and business activities are forecast to face many challenges due to the unpredictable global economy and climate change.
Businesses advised to focus on brand protection in online export

Businesses advised to focus on brand protection in online export

As more and more Vietnamese businesses are using international e-commerce platforms such as Amazon, eBay and Alibaba to expand market, experts have advised domestic firms to pay greater attention to the protection of trademark in the cyberspace, especially during online exporting activities.
Find solutions to attract goods through the first specialized container port in Vietnam

Find solutions to attract goods through the first specialized container port in Vietnam

VCN- As the first specialized container port in Vietnam with 25 years of operation, the volume of goods passing through the international container port of Vietnam (VICT) is still very modest. Mr. Truong Nguyen Linh, Deputy General Director of VICT port, has shared solutions to attract cargo through this port.
Textiles and footwear in a greening spiral

Textiles and footwear in a greening spiral

VCN - More and more regulations on sustainable development are issued in major markets such as the US and EU, imposing pressure on Vietnamese textile and garment enterprises to be faster on the green roadmap.
Agricultural, forestry and fishery product exports continue to "scoring points"

Agricultural, forestry and fishery product exports continue to "scoring points"

VCN - In the first four months of 2024, the country's total export turnover of agricultural, forestry and fishery products is estimated to reach more than US$19 billion, an increase of 23.7 percent compared to the same period last year. Most key agricultural and forestry export products increased higher than the same period last year as well as the export value to all markets increased.
Build and protect the rice value chain against market fluctuations

Build and protect the rice value chain against market fluctuations

VCN - Due to recent risks and challenges,business performancehave been badly hurt andmany chain links have been under threats ..., the rice industry needs to enhance the role of ministries, branches, localities, and farmers and businesses in building and protecting the rice value chain against market fluctuations.
Read More

Your care

Latest Most read
Imports and exports achieve US$239 billion by the end of April

Imports and exports achieve US$239 billion by the end of April

The import-export turnover in April witnessed a slight decrease compared to the previous month but it is still high with more than US$60 billion.
Spending more than US$31 billion for importing computers and electronic products in 4 months

Spending more than US$31 billion for importing computers and electronic products in 4 months

Computers, electronic products, and components are the group of imported commodities with the largest scale in the country.
Multi-dimensional picture of textile and garment enterprises

Multi-dimensional picture of textile and garment enterprises

VCN - The financial report of Thanh Cong Textile - Investment - Trading Joint Stock Company recorded revenue of more than VND 934 billion in the first quarter 2024, an increase of 7% compared to the same period in 2023; Net profit reached over VND 62 bill
Promoting Vietnamese pharmaceutical industry

Promoting Vietnamese pharmaceutical industry

Vietnamese pharmaceutical market grew from $2.7 billion in 2015 to $7 billion in 2022 and is forecast to reach more than $10 billion by 2026.
HCM City to host iTech Expo 2024 in July

HCM City to host iTech Expo 2024 in July

The first-ever international technology exposition (iTech Expo) 2024 will take place in Ho Chi Minh from July 10-12, featuring 500 booths from leading technology countries and territories around the world, heard a press conference on May 20.
Mobile Version