FedEx Express, one of the global largest express transportation
companies, is expected to be the first foreign investor to have a wholly-owned
subsidiary in Vietnam since the country entirely opened express market for
foreign players early this year.
David Cunningham, president of
the Asia Pacific Division of FedEx Express, in a recent meeting at the Ministry
of Planning and Investment said the US-headquartered company had filed
application for establishing a wholly-owned subsidiary in Vietnam.
He said FedEx expected the
Vietnamese government to approve its application soon. If the application is
approved, FedEx will be the first foreign express firm having 100 per cent
subsidiary in Vietnam.
FedEx has been operating in
Vietnam since 1994 through a partnership with domestic Scabornes and Danatrans
companies. The firm is also the first international express transportation
company to have it own flights into and out of Vietnam. At present, FedEx has
flights linking Hanoi and Ho Chi Minh City with 19 places in Asia and North
America.
Cunningham said the new
investment would expand business foothold of FedEx in Vietnam to exploit the
growing demand in this growing market. It also underlined long-term commitment
of FedEx in Vietnam’s market.
With the increase of foreign
direct investment inflow and average economic growth at around 7 per cent over
the past decade, Vietnam is an attractive place for foreign ex companies. The
proof for this industry’s potential, Datamonitor ResearchStore’s statistics
shows that the total express market value in Vietnam is expected to have the
annual growth rate of 10.9 per cent in the period of 2009 and 2014. However,
the Vietnamese government has just entirely opened express market for foreign
players since early this year under its commitment to the World Trade
Organisation.
Still, foreign companies like
FedEx Express, DHL Express, TNT Express and UPS Express have been presenting in
Vietnam for a long time and they are expanding business quickly. Those four
famous brands are now accounting for around 80 per cent of the market share in
Vietnam.
Ngoc Linh | vir.com.vn
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