Global delivery firms increase flights to Vietnam amid e-commerce boom
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Express delivery giants like DHL and UPS are increasing their transport capacity to Vietnam thanks to rising demand due to the Covid-19 pandemic.
Germany-headquartered DHL Express recently announced a new delivery route from Hong Kong to Ho Chi Minh City using wide-body Airbus A330 aircraft.
There would be six one-way trips a week, each with a capacity of up to 62 tons of cargo, it said.
This is to mainly serve the rising online shopping demand, it added.
It will also upgrade the aircraft used on the Hanoi – Hong Kong route from Boeing 737-400s to 737-800s to serve Vietnam’s surging exports.
Most consumers are now looking at delivery speed as a key component of their shopping experience, Bernardo Bautista, CEO of DHL Express Vietnam said.
Last year U.S.-based UPS launched its first service to Vietnam from its hub in China to increase delivery speed.
Vietnam does not have a dedicated cargo airline, and industry insiders estimate foreign companies hold an 80 percent aviation logistics market share.
Johnathan Hanh Nguyen, chairman of retail company Imex Pan Pacific Group, recently announced plans to establish a cargo airline at an investment of $100 million.
Vietnam’s e-commerce market expanded by 18 percent last year to $11.8 billion, the only country in Southeast Asia to record double-digit growth amid the pandemic, according to the Vietnam e-Commerce and Digital Economy Agency.
Questions & Answers
Q.Why are global delivery firms increasing their transport capacity to Vietnam?
Why are global delivery firms increasing their transport capacity to Vietnam?
They are increasing capacity due to rising demand caused by the Covid-19 pandemic and the surging online shopping demand from consumers. Many consumers now consider delivery speed a key part of their shopping experience.
Q.What changes is DHL Express making to its routes involving Vietnam?
What changes is DHL Express making to its routes involving Vietnam?
DHL Express is adding a new delivery route from Hong Kong to Ho Chi Minh City, offering six one-way trips weekly. It will also upgrade the aircraft used on its Hanoi, Hong Kong route to serve Vietnam’s growing exports.
Q.How large is Vietnam's e-commerce market and how did it perform last year?
How large is Vietnam's e-commerce market and how did it perform last year?
Vietnam's e-commerce market expanded by 18 percent last year, reaching $11.8 billion. It was the only country in Southeast Asia to achieve double-digit growth during the pandemic.
Q.What is the current situation regarding dedicated cargo airlines in Vietnam?
What is the current situation regarding dedicated cargo airlines in Vietnam?
Vietnam currently lacks a dedicated cargo airline. Foreign companies are estimated to hold an 80 percent market share in aviation logistics, though one local company has announced plans to establish one.
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