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Old 07-06-10, 02:15 PM   #1
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Logistics sector captures interest of Singaporean companies
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Logistics sector captures interest of Singaporean companies

Singaporean companies are laying wider eyes on Vietnam’s logistics sector and exerting resources to further tap opportunities of this expanding industry, said Chiong Woan Shin, International Enterprise Singapore’s regional director of Vietnam and Cambodia.

Chiong underlined the moves of Singaporean companies in a statement obtained by the Daily last week saying the Vietnam-Singapore joint venture company Indo-Trans Keppel Logistics Vietnam begin_of_the_skype_highlighting end_of_the_skype_highlighting (ITL Keppel) had inaugurated distribution centers in Hiep Phuoc in HCMC and Tien Son in Bac Ninh Province.

The two new facilities marked the latest expansion of Singaporean companies in Vietnam’s growing logistics industry. Other Singaporean logistics companies operating in Vietnam include APL Logistics, CWT Globelink, G-Link Express Logistics, Mapletree Logistics Trust and YCH Group.

“We are seeing much interest from Singaporean companies in Vietnam’s logistics sector. In particular, Singaporean companies are sought for their management capabilities and experience in the integration of the logistics value chain,” Chiong said.

Chiong quoted sources as saying that logistics costs in Vietnam were still higher than in most other countries, and therefore an efficient logistics system would help to reduce overall costs to enable Vietnam to become more competitive.

Singaporean companies will support in developing an efficient logistics system in Vietnam through joint ventures with local partners and investment in infrastructure, giving a boost to Vietnam’s logistics industry, Chiong said.

Experts of the Vietnam Shipping and Logistics Forum estimated logistics services accounted for 15% or more of Vietnam’s gross domestic product. More than 800 logistics companies in the country can meet a mere one fourth of the demand.

According to the Vietnam National Maritime Bureau, local logistics companies were able to transport only 18% of total imported and exported goods by sea and the rest was handled by foreign firms. Sea transportation is the most important segment of the country’s logistics sector.

International Enterprise Singapore noted that with the burgeoning volume of materials and goods being transported both within, and in and out of the country, there was a strong demand for efficient and integrated logistics solutions.

Singapore is a global logistics hub of more than 3,000 logistics companies, according to International Enterprise, which was established as an agency under the Ministry of Trade and Industry to promote the overseas growth of Singapore-based enterprises and ninternational trade.

Singapore’s logistics companies have built a strong track record serving multinational corporations and global traders based in Singapore, as well as around the world, providing customized supply chain solutions to ensure fast, flexible and responsive services.

Chiong said Singaporean companies were able to offer end-to-end services for Vietnam’s growing logistics needs, from transportation, warehousing, information flows and other value-add services.

“Singapore’s logistics companies can help serve the needs of different sectors in the country. These range from the manufacturers based in Vietnam’s industrial hubs to the farmers in the Mekong Delta, which is the base for Vietnam’s vast agricultural and aqua-cultural produce,” Chiong said.

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