DHL wishes to further partnership with Vietnam Post and Telecommunications Corporation
DHL Vietnam has shrugged off the idea of setting up a totally foreign-owned firm in favor of expanding cooperation with the Vietnam Post and Telecommunications Corporation (VNPT).
VNPT started acting as agents for DHL in 1988 with the first bilateral deal inked in Ho Chi Minh City. The Germany-based company got permission to set up a joint venture with a 51 percent stake with the largest telecommunications group in Vietnam in January 2007 in order to meet ever-growing market demands.
Vietnam has allowed a foreign company to hold a 51 pct stake in an express delivery joint venture as part of its entry into the World Trade Organization (WTO). However, wholly foreign-owned express companies have to wait until 2012 to go into operation.
VNPT is quite a familiar service provider to the Vietnamese with a wide agent network covering 52 cities and provinces across Vietnam.
Baxter said his company with a market share of 40 percent in Vietnam is consistently experiencing double digit growth exceeding 20 percent in Vietnam as the manufacturing sector continues to grow, and Vietnam realizes its export potential.
DHL has already kicked off a 14 million USD project to build two major service centers in southern Dong Nai province and Hanoi and to purchase a new fleet of vehicles. The move is expected to help DHL rival around 20 other foreign market players including TNT, Fedex, UPS and JNE.
TNT of Australia, the most formidable competitor against DHL, has just brought to service the trans-Asia road network (ARN) in Vietnam after adding 6 more million EUR to its project kicked off in 2005. After the first phase with total budget of 2 million EUR, the ARN project created a road linking Singapore, Malaysia and Thailand.
