APL ups position in the Vietnam logistics fight

Vietnam - Yet another logistics company is enhancing its business in Vietnam, as it eyes a slice of the next up-and-coming economy after powerhouses China and India.

Global container shipping company APL has launched a new feeder service between Vietnam, Taiwan and Singapore to match the fast-growing Vietnam market.

The new service, called the Southern Vietnam Express service (SVX) will up its departures from Ho Chi Minh City from its current three weekly services to five.

Bob Sappio, APL senior vice president for Transpacific trade said: "The SVX provides our customers with the service reliability and flexibility they need as global demand for Vietnam's products continues to grow."

The company's calls at Kaoshiung and Singapore also give its customers to APL's linehaul service connections to destinations throughout the US and Europe, Sappio said.

The SVX is jointly operated by APL and Hanjin, with each carrier deploying a 700 twenty-foot equivalent unit (TEU) vessel, the company said in a statement.

Parent company NOL recently reported a net profit of US$121 million in the first quarter of 2008, a growth of 183% over the same period last year. The APL business grew 33% in the quarter to more than US$2 billion. It carried a total of 662,900 FEU in the first quarter of 2008, a growth of 14% over a year before.

Other 3PLs like DHL last year announced it will expand its network infrastructure in Vietnam as part of its US$14 million investment programme. It said it will invest approximately US$6.5 million to build two service centres, one in Dong Nai and another in Hanoi as well as two courier deports in Da Nang and Hai Phong.

Meanwhile TNT announced plans to invest more than 7 million euros (US$11 million) over the next four years in Vietnam. The investment will fund five branches in Bac Ning, Vinh Phuc, Vinh, An Giang and Ca Mau, as well as fund additional vehicles and new hires.

"With GDP growth rates projected as high as 10% by analysts, Vietnam is a rapidly emerging economy," said Onno Boots, regional managing director for TNT Asia. "Given the tremendous business opportunities, TNT will continue to invest in developing innovative solutions so that business in Vietnam can enjoy the greatest flexibility in choosing the right and most cost-effective transportation solution to meet their business needs."