Southeast Asia needs integrated road network

The whole world is experiencing an economic slowdown, and it will affect import and export activities in Viet Nam, so how has Viet Nam become an important market for TNT?

With these developments, we see Viet Nam having a bright future and an increasingly powerful economic role in the region. WTO membership should benefit Viet Nam’s economy by increasing its access to foreign markets and strengthening the country’s corporate governance and ability to defend its interests in trade disputes.

Together with its rapidly growing economic base and position in the heart of Southeast Asia, Viet Nam is well positioned to take advantage of emerging new global trade flows. The EU does certainly maintain its rank as the second largest trading partner, following China closely with a trade volume totalling US$14.23 billion. The EU is Viet Nam’s second largest export destination, absorbing 19.32 per cent of Vietnamese exports.

While Viet Nam maintains a high trade deficit with China (about $9.15 billion), the relationship with the EU remains favourable, with Viet Nam earning a surplus of around $5.66 billion. In addition, the EU is the second largest investor in terms of capital (nearly $5 billion) after Japan.

With pledged foreign direct investment of $21.3 billion in 2007 and a record $31.6 billion for the first half of 2008, the trade deficit for the first half of 2008 was measured at $14.8 billion, compared with the $14.1 billion of 2007.

By looking at these figures, we can see that the economy of Viet Nam was booming in 2007. It is expected to continue to grow.

According to statistics, transportation by road in the US and EU is nearly 80 per cent, while in Viet Nam only around 22 per cent of goods are transported by road, why is there such a big difference?

Countries in Europe and the US have long established their road networks to facilitate transportation. It is very easy to transport goods from one country to another in Europe because of its advanced road infrastructure and convenient customs clearance. However, Viet Nam and other countries in Asia are rapidly growing markets which raise the demand for homogenous and well-connected road transportation networks in the region.

Recognising the potential of an integrated road network, TNT, in 2005, pioneered its Asia Road Network that spans 5,000 kilometres and connects 125 cities in Malaysia, Singapore, Thailand and China through the north-eastern border of Viet Nam.

In your mind, what advantages does Viet Nam have in potential growth? Do you see any disadvantages?

TNT’s Asia Road Network is the first to be introduced in Asia. It represents our strong belief that road service in Viet Nam and Southeast Asian countries will continue to grow in coming years. This offers a huge opportunity for TNT to continue to develop and grow the Asia Road Network as well as the domestic network in Viet Nam.

More significantly, the strong demand for TNT’s road services will enhance its flexibility and ensure that TNT continue to offer customers fully customised solutions that meet their unique needs.

From air, sea or road transport, which option is best for customers?

Road, sea or air services all have their own advantages. With TNT’s integrated air and road networks, the express integrator is well-positioned to design solutions that ensure maximum cost and business efficiency for customers.

For example, road service is especially useful for high-value goods from industries such as the healthcare, high-tech and automotive. Supply chain management is more than moving goods from one point to another.

TNT’s comprehensive supply chain solutions will assist customers in improving their businesses by offering smarter transport solutions that are safe and reliable. The unique combination of road and air is especially attractive in current times as it delivers greater cost efficiency for customers.

There is an increasing demand from customers in the region for efficient and reliable transportation of goods in Viet Nam. The TNT road service is two to three times faster than sea freight and offers customers significant savings of up to 30 per cent compared to air freight.

What has TNT done to maintain its competitive advantages, especially now that the economy is facing difficulty?

With the current global climate, intercontinental volume flows may slow down but lower fuel prices in the past month will keep costs down for customers. Efficient supply chain management solutions are especially key in today’s global climate and integrated air and road solutions will deliver greater choice, value and cost efficiency for customers’ unique needs.

The overall outlook is still positive for the industry and TNT Viet Nam is confident of riding out this difficult time.

TNT will focus on building its network in Southeast Asia before strengthening its intercontinental connectivity via its integrated air and road networks. It will maintain its focus on strategic trade lanes (Europe-Southeast Asia-China) and key verticals (high-tech, healthcare and equipment and machinery) and stay on course in its strategy to build a leading position in the region with a 100 million-euro investment in Southeast Asia in the next five years.

Established in 1946, TNT has become one of the leading logistics companies worldwide with a long history of delivering expertise. Can you introduce your operations in Viet Nam?

TNT offers efficient network infrastructures in Europe and Asia and is expanding operations worldwide to maximise its network performance.

Worldwide, TNT moves an average of 4.4 million pieces of freight, parcels and documents a week to more than 200 countries and employs more than 161,500 people.

As a joint venture established in 1997, TNT-Vietrans Express Company Ltd has been growing steadily and now operating in 23 cities and provinces throughout Viet Nam.

With almost 500 employees, TNT Viet Nam operates seven depots and 16 offices which provide world-class 24/7 customer service.