Forwarders positive on Vietnam’s rising potential

According to Thomas Tieber, CEO of DHL Global Forwarding for ASEAN and South Asia, exports are growing and there are lots of phone and other hi-tech companies setting up in the north near Hanoi, more imports, which ties in with export industries and growing demand by air, ocean and trucking overland to China and the rest of the ASEAN region.

After recording relatively slow economic growth of 5.6% year-on-year in Q1 2016, HSBC’s latest manufacturing PMI surged to a 10-month high in May, rising to 52.7 from 52.3 previously.

Jay Waldron, senior vice president for logistics & customs brokerage solutions at Kewill said Vietnam had been successful attracting producers due to its low labour costs, especially as costs in China had surged and become around three times more expensive than its neighbour. The ready availability of skilled workers had enabled the country it to work its way up the manufacturing technology chain, while local supply chains were also increasingly reliable.

Waldron said that many of Vietnam’s established suppliers and manufacturers were foreign-owned, with a large portion Chinese-owned, and this makes it much easier to transfer existing quality control checklists, specification sheets, or other documentation that are written in English or Chinese. Vietnam’s multi-lingual workforce, with a large population of workers proficient in speaking and reading English and Chinese, was also a long-term advantage, both compared to China and other Asian countries looking to attract more manufacturers.

(Lloyd's Loading List)