Vietnam to Open Up Express Delivery Market to Foreign Companies
Oct. 21 – To fully comply with WTO policies, Vietnam has committed to opening up its growing express delivery market to create a level playing field for both domestic and foreign express mailing companies.
Vietnam’s express delivery market has seen tremendous growth over the last few years with total revenue in the sector rising from US$50 million in 2007 to around US$200 million in 2010.
The country plans to open the market up in 2012 to allow joint ventures with 51 percent foreign-invested capital or the establishment of wholly foreign-owned companies in the next five years, Paul Needham, chief editor of CEP Research, told Vietnam News.
Four of the world’s leading express mailing companies DHL, FedEx, TNT N.V. and UPS are already present in the country under the structure of a joint venture. These companies have been rapidly expanding their Southeast Asian networks and are competing fiercely to get a leg-up in the Vietnamese market.
The competition is good for Vietnam, whose imports and exports will benefit greatly from the quick and efficient international and domestic transportation of goods.
- Previous Article Vietnam’s Trade Deficit Forecast to Hit US$13.5 Billion this Year
- Next Article Japan and Vietnam to Jointly Develop Rare Earth Deposits