Logistics in Vietnam Essay Sample

I. Introduction Vietnam is located in the south-eastern terminal of the Indo-Chinese peninsula and occupies a land country of 331. 688 square kilometres. With a north-to-south distance of 1. 650 kilometres. it is about 50 kilometres broad at the narrowest point. It portions boundaries with Laos. Cambodia on the West and China in the North. Vietnam has 58 states and five large metropoliss. Its geographical topography contains tropical Lowlandss. deltas. hills and dumbly forested Highlandss. Major geographic parts in the state include Highlandss and the Red River Delta in the North. the Highlands in the cardinal part and the coastal Lowlandss and the Mekong Delta in the South. Vietnam has a population of more than 85 million with an estimated 63 % below the age of 30.

The Kinh ( Viet ) cultural group constitutes the bulk of the population ( about 86 % ) and Vietnamese is the most normally spoken linguistic communication. Literacy degree in Vietnam is at around 90 % of the entire population. which is comparatively higher than other developing states. Vietnam has seen rapid economic growing after following economic reforms in 1986. doing the state one of the fastest turning economic systems in Asia. The on-going attempts of the Government towards international economic integrating such as the forming of bilateral trade understandings. achieving ranks of the ASEAN Free Trade Area ( AFTA ) and. in January 2007. accession to the World Trade Organization ( WTO ) . have led to further rapid alterations in Vietnam’s trade and economic government. Until 2008. the Vietnamese economic system has recorded a growing rate of 7 % per twelvemonth.

After a slow-down in 2009. when the growing rate was 5. 3 % . in 2010. the gross domestic merchandise ( GDP ) grew by 6. 8 % making a value of USD 104. 6 billion. Besides that. favourable authorities policies for industrial activities and other of import factors such as a comparatively low cost of labour and a strategic location in a fastgrowing part of the universe. have led to the growing of Foreign Direct Investment ( FDI ) flows into Vietnam and to the constitution of more privately-owned Vietnamese endeavors. The influx. or disbursement. of FDI was reached USD 11 billion in 2010. up 11 % as compared with the old twelvemonth. Vietnam’s imports and exports have been systematically increasing with an one-year mean growing rate of 20 % . In 2010. export grosss amounted to USD 71. 6 billion. 25 % higher than in 2009. whereas the import turnover reached USD 84 billion. 20 % higher. All these factors have led to an demand for logistics services in Vietnam in recent old ages. which has met some obstructions in being satisfied at the coveted quality and monetary value degrees. due besides to some restraints which will be discussed in what follows. This spread between demand and supply of logistics services can besides be seen as a concern chances for companies interested in developing their trade in Vietnam. The market is easy but steadily opening to foreign suppliers. harmonizing to the agendas and the committednesss agreed upon in the model of Vietnam’s WTO accession. II. A general image on logistics in Vietnam 2. 1 Infrastructure. operation and lading volumes 2. 1. 1 Air Infrastructure The air power industry in Vietnam operates under the direct legal power of The Civil Aviation Administration of Vietnam ( CAAV ) . The CAAV presently oversees 22 airdromes including three international airdromes: Noi Bai in Hanoi. Danang in Central Vietnam and Tan Son Nhat in Ho Chi Minh City.

The 19 minor airdromes are for domestic flights to the three larger hubs. They are at Hai Phong. Dien Bien. Na San. Gia Lam. Vinh. Phu Bai. Dong Hoi. Phu Cat. Tuy Hoa. Cam Ranh. Pleiku. Buon mom Thuot. Lien Khuong. Vung Tau. Can Tho. Rach Gia. Ca Mau. Phu Quoc and Con Dao.

Presently. Ho Chi Minh City’s Tan Son Nhat is the largest airdrome. functioning more than ten million domestic and international riders a twelvemonth. In 2007. Tan Son Nhat Airport added an international terminus. The 92. 000 square metre installation has a capacity of 10 million international riders and one million metric tons of lading per twelvemonth. The old terminus was converted to function domestic flights with a capacity of 7 million riders every twelvemonth. Parking country of the whole airdrome can suit 30 aeroplanes and about 6. 000 autos at a clip. Other airdromes with important rider throughput capacity include Noi Bai Airport in Hanoi with 7. 1 million riders. Cat Bi airdrome at Hai Phong with 500. 000. Danang Airport with 1. 4 million and Hue’s Phu Bai Airport with 520. 000 riders per twelvemonth. The most important new airdrome undertaking under consideration is the Long Thanh International Airport in Dong Nai Province. 50 kilometer to the nor’-east of Ho Chi Minh City. The undertaking was supposed to get down in 2007. nevertheless it is still in stand-by. Recently. the authorities has pushed the Ministry of Transport to get down the building in early 2011. The airdrome is to be built in two stages. with the USD 5 billion-worth Phase I holding a designed capacity of 20 million riders per twelvemonth.

The program for Phase II envisions four tracks 4. 000 metres in length and 60 metres broad. capable of suiting heavy longhaul planes. including the Airbus A380. The entire capacity will be so upgraded 80 to 100 million riders and 5 million tones of lading per twelvemonth. CAAV is in the procedure of change overing bing airdromes at Cat Bi Island ( near Haiphong ) . Chu Lai in cardinal Quang Ngai state. Phu Quoc Island. and Cam Ranh from domestic to international airdromes. Operation and Volume The two principal air hoses runing in Vietnam are Vietnam Airlines and Jetstar Pacific Airlines. Both of these air hoses are province owned. while Jetstar has a interest in the latter 1. Other minor air hoses have besides obtained a licence to run. but so far merely Air Mekong has started winging from its base in
Phu Quoc island. Air lading handled in Vietnam grew at the mean rate of 17 per centum per annum during the 2000-2007 period. Though the rate has lightly reduced due to the effects of the crisis in 2009. air cargo volume is expected to continually increase in the coming old ages. besides due to the accent placed by the authorities on pulling makers of electronics and high tech industries which require more sophisticated transit. including the increased used of air cargo.

Noi Bai Airport’s lading operation in Hanoi are handled by Noi Bai Terminal Services with 19 international air hoses offering cargo services. The company is bulk owned by Vietnam Airline together with several other Vietnamese cargo forwarders. Tan Son Nhat Cargo Services. a joint-venture between Vietnam Airline and Singapore Airport Terminal Service. handles international lading operations for 22 air hoses and has an one-year lading throughput of 100. 000 tones ( about 80 % of entire international cargo volume ) .

Figure 1. Volume of cargo. 2000-2009
Volume of Freight by Air. 2000-2009
Volume of frieght ( Thous. dozenss ) 150 100 50 0 2000 2003 2005 Year 2007 2009

Domestic

Oversea

Beginning: General Statistics Office

Figure 2. Volume of Freight Traffic by Air 2000-2009
350 Volume of Frieght Traffic ( Mil. dozenss. kilometer ) 300 250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 twelvemonth

Beginning: General Statistics Office 2. 1. 2 River and sea Infrastructure Vietnam’s dense river and canal web provides the state with a extremely developed inland waterway system. This is the second-largest sub-sector involved in domestic lading conveyance. accounting for 25-30 % of entire conveyance volumes. This is peculiarly true of the Mekong River Delta where. in some states. it accounts for 60-70 % of entire conveyance. Currently. the inland waterway conveyance sub-sector is managed by two province corporations affiliated to the Ministry of Transport. one state-owned endeavor ( SOE ) affiliated to the Vietnam Inland Waterway Authority. and some endeavors managed by other ministries. operating in support of the power coevals. cement. and paper industries. In add-on. there are about 230 co-operatives and 100s of inland waterway conveyance endeavors in the state. As the traditional paths functioning the cardinal industries such as coal for power coevals. fertilizer and cement. inland waterway conveyance besides handles a big volume of other edifice stuffs and agricultural merchandises.

Vietnam’s 3. 260 kilometer coastline has 127 ports. of which 25 grip ocean lading. The five chief locations that receive regular container services in Vietnam are Ho Chi Minh City ( handles 72 % of entire lading throughput ) . Hai Phong ( 20 % ) . Cai Lan ( 4 % ) . Da Nang ( 1 % ) . Quy Nhon ( 1 % ) . Two new large ports in Ba Ria-Vung Tau state are expected to demo up every bit good among the major 1s. after their startup in 2010. Vietnam’s haven web comprises many small- and moderate-sized entities. with inefficient distribution. Most large ports are located far inside rivers. like Hai Phong and Ho Chi Minh City. with limited deepness at the entryway. Some ports are located in large metropoliss where route traffic is peculiarly congested. doing it hard to send on lading via other manners of transit. Except for some new or upgraded 1s. most ports have been runing for many old ages. deficiency investing and are earnestly degraded. The burden and unloading equipment in some ports is disused. taking to low productiveness. This is one of the major grounds why Vietnam is ranked behind its neighbors in both the World Economic Forum’s Gobal competiveness Report 2009-2010. where it comes 99th out of 133 states in footings of ports substructure. and in the World Bank’s Logistics Performance Index. where it comes in 53rd topographic point. while its neighbors Singapore and Malaysia are placed 2nd and 29th severally.

The authorities is cognizant that port congestion is now a critical issue endangering Vietnam’s export growing. Since 2009 it has approved several large haven undertakings which are under building. Concentration of medium ports in Hochiminh metropolis Ho Chi Minh City is a critical gateway. given that 72 % of the country’s container throughput go throughing through its ports. They serve non merely their immediate localities but besides the adjacent states of Binh Duong. Dong Nai. Baria – Vung Tau. where a big figure of industrial and fabrication workss are based. in add-on to the Mekong Delta and the Central Highlands. However. all ports are located really near to metropolis Centre. restricting the capacity and deepness at the entryway and enduring from urban traffic congestion. The lone exclusion is Saigon Premier Container Terminal since it was built in 2008 at the suburban countries. It has merely begun to run by a joint-venture between DP World and Tan Thuan Industrial Promotion Company.

Table 1. Facilities at the Main ports in Ho Chi Minh City
Port Cat Lai VICT Saigon Port information No of Berths 6 4 18 Entire Berths 800m 678m 2. 667 m of Length Depth -10. 5m -10m -11m aboard berth Max Sixe of 30. 000DWT 25. 000DWT 30. 000DWT vessel Land country 60ha 20ha 50 hour angle Quayside 10 4 2 Gantry Cranes VICT- Saigon International Terminals Vietam Port Source: Different beginnings Ben Nghe SPTC Port 4 3 816 m 500m -10. 5m -14m 30. 000DWT 2. 200 TEU 32 ha 23ha 0 5

Beginning: SPCT Ba Ria-Vung Tau. new part of deepwater ports The new part for deepwater ports is Ba Ria-Vung Tau Province. Tan Can-Cai Mep was the first container and deepwater port developed in the state in 2008. Construction of the first stage of the undertaking was completed in 2009. The port can suit ships up to 80. 000 DWT during the fist stage and 110. 000 DWT during the 2nd stage which is scheduled to run in 2011. SSA Marine from the United States of America signed a joint-venture with Saigon Port and Vinalines to construct a USD 282 million port on 60 hectares at Cai Mep and Thi Vai rivers The port includeS 600 metres of position frontage and can manage a container throughput of up to 1. 35 million TEU per twelvemonth.

The port. which begun operation in 2009. accommodates ships of up to 80. 000 DWT. In 2008. Maersk A/S. Saigon Port Company and Vietnam National Shipping Lines ( Vinalines ) . formed a joint venture for Cai Mep International Terminal ( SP-SSA ) . two-wharf container and deepwater port with an investing value of USD 200 million. The undertaking is the most of all time important development funded by the province budget through Official Developing Assistance ( ODA ) . The port has been built from 2008 on 48 hectares. its piers have a entire berth lengths of 600 metres and it can suit a throughput of up to 1. 1 million TEUs per twelvemonth. The test is taken in late of 2010. functioning to container ship Albert Maersk. 352 metres long and 109. 000 DWT in weight. The operation of the port is expected to cut down congestion in Ho Chi Minh City’s ports. Van Phong port. an international transshipment port near Nha Trang. Khach Hoa Province. is to be built by Vinalines to function as a regional hub similar to those operating in Hong Kong and Singapore. The port will suit ships of up to 200. 000 DWT. Current plans for the port include terminuss for container ships with lading capacity of 15. 000 TEUs and 17 majority lading wharfs capable of managing 17 million TEUs a twelvemonth. The first stage of the Van Phong undertaking. scheduled to get down in 2010 or 2011 and complete in 2015. will see building of two big and five little positions with a quay size of up to 2. 260 metres.

This would let the installation to manage 9. 000 TEU vass and have a entire container throughput capacity of two million TEUs per twelvemonth. The Ministry of Transport has assigned Vinalines to develop a deep H2O port at Lach Huyen. in northern Vietnam near Haiphong. The port will be the largest transshipment port in northern Vietnam. suiting ships of 60. 000 – 80. 000 DWT. The port will include four container terminuss. two bulk lading terminuss. and five terminuss for nutrient and other goods. Entire capacity would be 35 million metric tons of goods per twelvemonth. Its building is expected to get down in 2011. Operation and Volume The largest local operator is the Vietnam National Shipping Lines ( Vinalines ) . This stateowned companies is besides the chief developer of about all larboard building undertakings in the state. Until 2005. the volume of cargo traffic by river has stably grown. In the undermentioned old ages enlargement became more hard for the sector since about all flatboats. the most common agencies of river conveyance in the state. were going old and insecure and there was a deficiency of specialised majority lading ships.

Figure 5. Volume of Freight Traffic by River. 2000-2009
30. 000 Volume of Freight Traffic ( ton/km Mln. ) 25. 000 20. 000 15. 000 10. 000 5. 000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year

Beginning: General Statistics Office In footings of cargo by sea. the information shows a steadfast growing tendency from 2000 to 2010. With regard to the throughput of the port system. Hochiminh City’s ports study that the demand is normally higher than their capacity. APL Shipping line expects demand for container cargo in the South to increase by an norm of 20-25 % per twelvemonth from 2011 to 2015. The volume of cargo traffic by sea increased on norm by 19. 6 % per twelvemonth. raising the entire volume to 13. 5billion ton kilometer in 2009.

Figure 6. Volume freight traffic by sea. 2000-2009
Volume cargo traffic by sea ( ton/km Mln. ) 160. 000 140. 000 120. 000 100. 000 80. 000 60. 000 40. 000 20. 000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year

Beginning: General Statistics Office

2. 1. 3 Road Infrastructure The statistic of 2007 shows that Vietnam has approximately 210. 000 kilometer of route. 17. 300 km national main road. Approximately 85 % of the national roads are paved. while merely 54 % of the provincial roads. and 20 % of the territory roads are paved. Merely ? of the route web has more than one 9 lane and major restraints include narrow breadths. ill designed junctions and restrictive vehicle weight bounds.

Vietnam does non hold a modern freeway associating the northern and southern parts of the state. Route 1A running the length of the state is of changing quality. with much of it being a individual lane route of deficient breadth. To turn to route substructure restraints. the Ministry of Transportation and MPI have developed programs for a series of route ascents. The authorities has approved an estimated 2. 160 kilometer of new main road undertakings as portion of the national Transport Master program. The tabular array below summarizes approved highway undertakings in Vietnam to 2020. Beside the deficiency of main road system. the inefficiency of urban roads is besides a challenge to container transportation towards or inside major metropoliss. The traffic congestion earnestly increases clip of send oning. The job. moreover. seems non so easy to be solved in the short term.

Table 2. Summary of sanctioned main road undertakings in Vietnam to 2020

Beginning: VEC- Vietnam Expressway Corporation. 2008 Operation and Volume In 2009 there were over 1. 050 endeavors registered in the route conveyance concern. which included 16 state-owned endeavors. 233 limited liability companies. 350 private companies and 450 joint stock companies. Very few foreign invested companies are present. Most route conveyance companies are of little and average graduated table. Each company owns about 50 vehicles. on norm. Road conveyance histories for around 60 % market portion of domestic lading. There has been a 16 % annually growing. on norm. in the volume of cargo route conveyance over the last 10 old ages. The entire cargo traffic reached 30 ton/km Bln. in 2009. It is assumed that the informations should be higher when adding the cargo forwarded by 10s of 1000s of single 10 family concern which operate informally in the sector and are therefore are non accounted for in the national statistics.

Table 3. Volume of cargo by Road. 2000-2009 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Volume of cargo ( Thoun. ton ) 144571. 8 164013. 7 192322. 0 225296. 7 264761. 6 298051. 3 338623. 3 403361. 8 455898. 4 494649. 8 Volume of cargo traffic ( Mil. ton. kilometer ) Rate of grow ( % ) 7969. 9 9184. 9 10667. 6 12338 14938. 8 17668. 3 20537. 1 24646. 9 27968 30261. 4 15 16 16 21 18 16 20 13 8

Beginning: General Statistics Office 2. 1. 4 Rail Infrastructure Vietnam’s rail web sums about 2. 600km ( excepting turnouts ) . It comprises 2. 169 kilometer of 1. 000 mm gage and 178 kilometer of 1. 435 mm gage paths. the latter largely located in the Northern portion of the state. The web has 1. 790 Bridgess numbering 45 kilometer and 11. 5 kilometer of tunnels. The chief axis is Hanoi-Ho Chi Minh City ( 1. 726 kilometer ) . Other lines emanating from Hanoi are to Hai Phong ( 102 kilometer ) . Lao Cai ( 296 kilometer ) and Dong Dang ( 162 kilometer ) . Trains have a maximal velocity of 70 km/hour but often have to decelerate to under 30 km/hour along older subdivisions of path or when traversing aged Bridgess.

The Hanoi-Ho Chi Minh City line connects the premier economic zones in the North and South. Since most of the economic activity is concentrated around these parts. this line serves as the most of import nexus in Vietnam’s rail web. The web connects to China’s railroads at two gateways in Lao Cai and Dong Dang. Operation and Volume The rail web has a sole operator. the Vietnam Railway Corporation ( VRC ) . The policy and ordinance maps fall under the Vietnam Railway Administration. a section of the Ministry of Transport. Apart from runing the railroad substructure. VRC besides buys and maintains engines and invests in care installations. However. due to a deficiency of investing and old substructure. the railroad face strong competition from maritime. inland waterway and route transit manners. The system has been focused on rider traffic due to the proficient challenges confronting the motion of containers and majority lading. Traffic denseness is low. around 2. 3 million traffic units/route/km per twelvemonth. which includes both cargo and rider.

The volume in tunnage kilometre equivalent from 2000 to 2009 had an mean growing rate of 7. 2 % per twelvemonth with a slightly high volatility. The current growing of the cargo traffic through rail is non so fast because of the high costs and the hapless efficiency of the system instead than due the deficiency of demand.

Table 4. Volume of cargo by rail. 2000-2009
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Volume of freight Volume of freight Rate of growing of ( ton. ‘000 ) traffic ( ton/km Mln. ) cargo traffic ( % ) 6258. 2 6456. 7 7051. 9 8385. 0 8873. 6 8786. 6 9153. 2 9050. 0 8481. 1 8068. 1 1955. 0 2054. 4 2391. 5 2725. 4 2745. 3 2949. 3 3446. 6 3882. 5 4170. 9 3805. 1 5 16 14 1 7 17 13 7 -9

Beginning: General Statistics Office

2. 2. The logistics industry in Viet Nam 2. 2. 1 Some considerations about the industry The logistics industry in Vietnam is still in its babyhood and the procedure of procurance of goods and stuffs. transit. storage and bringing are non normally carried out in an incorporate mode. The competitory construction of logistics companies in Vietnam is defined by the degree of service offerings. integrating of those services and their overall quality and cost. The logistics market in Vietnam can be segmented based on the maps served or the extent of outsourcing. 12

The functional cleavage includes 3 chief classs i. e. transit. cargo forwarding and repositing. The transit map histories for a major part of logistics activity followed by cargo forwarding and trading services. Demand for transit and cargo forwarding services is strong due to high volumes of stuffs and finished goods that need to be transported. However. the transit service sector as a whole in Vietnam is comparatively weak. Despite holding the most extended transit system in the Indochina part. Vietnam’s route and rail web is under-developed. while both ocean and air transit are characterized by higher costs and longer theodolite times as compared to many of its neighbour states. Furthermore. the Vietnam transportation industry is dominated by international bearers who are able to supply planetary coverage of services.

The local bearers are mostly focused on domestic and regional transportation services within South East Asia. Ho Chi Minh metropolis. through which more than 70 per centum of Vietnam’s container throughput base on ballss. is a critical gateway for both imports and exports. Particularly. the demand for repositing and other value-added logistics services is besides increasing ; however. a big part of these services is operated in-house. so it will take clip before outsourcing becomes more prevailing. The distribution system is presently fragmented and consists of a web of state-owned and private houses. import-export houses and jobbers. independent agents and distributers. and retail mercantile establishments including little family-run stores. modern distribution mercantile establishments and state-owned shops. 2. 2. 2 Some major challenges Inconsistent ordinance poses a challenge for service suppliers The regulative and legislative criterions refering countries such as imposts clearance. land handling. and terminal operations are extremely complex. The multiple beds of ordinances and disposals in charge of implementing them makes the certification procedure extremely complex and leads to subsequent additions in both lead times and the cost of treating cargo.

Logisticss costs in Vietnam are estimated to be about double the cost in industrialised states and a major part of this cost can be attributed to high stock list retentions. Consequently. the deficiency of lucidity on multi-modal regulations regulating imposts and the transit government. every bit good as the complexness of certification processs. are chief hindrances to smooth logistics operations. Lack of lucidity on functions and duties slows industry growing In Vietnam. the boundaries between the operations of assorted concerns such as cargo forwarders. warehouse operators. fleet operators and incorporate logistics companies are non good defined. Such concerns are frequently disconnected and do non by and large complement each others’ service offerings. which can take to duplicate of attempts and higher costs. Many havens and airdromes besides lack back uping logistics distribution centres. which can ensue in increased stock list and idle clip for trucks. ships and planes. The logistics companies. cargo forwarders and transporting lines need to work together for optimum use of resources alternatively of working as contractors in distinct activities to offer competitory services at lower rates. Deficit of Skilled Manpower The Vietnamese logistics industry lacks experient logistics professionals. This is a major challenge for local every bit good as transnational companies since they find it hard to engage the right endowment. Lack of sufficient preparation and instruction in the field of logistics is besides a major subscriber to the dearth of skilled forces.

III. Vietnam’s committedness to WTO in logistics Harmonizing to committedness to WTO. Vietnam has committed to opening up following sectors: · Container burden and unloading service · Warehouse service · Freight bureau service Foreign investors may supply container burden and unloading. warehousing services in Vietnam under what signifiers and what conditions? + Container burden and unloading service Under the WTO committednesss. foreign investors who want to put in this service in Vietnam must set up a joint venture with Vietnamese spouses with some limitations – Restriction on the rate of capital part: in the joint venture. the proportion of the foreign capital part can non transcend 50 % . – Restriction on activities: Vietnam can non let these joint ventures to supply this service at airdromes. + Warehouse service Under the WTO committednesss. foreign investors who would wish to put in this service must set up a joint venture with Vietnamese spouses and the ratio of foreign capital can non transcend 51 % . Since 11/01/2014. foreign investors can set up a joint venture with Vietnamese spouses without limitation on the foreign capital in that venture or they can even set up 100 % foreign owned capital company. Foreign investors may supply cargo bureau service in Vietnam under what signifiers and what conditions? Harmonizing to WTO committednesss. foreign investors who want to supply this service in Vietnam have to put up a joint venture with Vietnamese spouses.

In the joint venture. the proportion of foreign capital can non transcend 51 % . From the day of the month of 11/01/2014. foreign investors can set up a joint venture with Vietnamese spouses without limitation on the foreign capital in that venture or they can even set up 100 % foreign owned capital company. Foreign investors may supply other services? Besides the services mentioned above. foreign investors can take part in following services on behalf of lading proprietors. – Checking measures of ladling – Checking goods – Sampling and weight finding – Receiving and accepting goods – Fixing conveyance paperss In order to make those services. foreign investors must set up a joint venture with Vietnamese spouses. In the joint venture. the proportion of foreign capital can non transcend 49 % . From the day of the month of 11/01/2010. restriction of foreign capital in the joint venture will be 51 % . From the day of the month of 11/01/2014. foreign investors can set up a joint venture with Vietnamese spouses without limitation on the foreign capital in that joint venture.

IV. Leading companies in the market 4. 1 Vietnam Airlines Company overview Vietnam Airlines was established as a state-owned air hose in 1989 and merged with a figure of service companies in 1996 to give it its present signifier. The government’s stated end is to farther incorporate the company into the planetary market and set up itself as a regional participant. In 2006. it was officially accepted as a full member of the International Air Transport Association. In June 2010. Vietnam Airlines became a member of the SkyTeam Alliance fall ining other major air hoses.

The Vietnamese bearer provides rider air services to 25 finishs in 15 states including in South East Asia. Australia. Russia. France. Germany and the United States of America. Until 2009. tts fleet of 50 modern aircrafts has carried more than 9mn riders. The company has a figure of codification portion operations with foreign companies. in peculiar the February 2004 understanding with Air France to portion 11 non-stop scheduled flights between Ho Chi Minh City and Paris. Vietnam Airlines’ lading operations serve 20 finishs in Asia. the Middle East. Australia and Europe. with spouse webs functioning other finishs. The lading division operates Tan Son Nhat Cargo Services. a jointventure with Singapore Airport Terminal Service. which has an one-year lading throughput of 100. 000 metric tons. Fiscal Performance The national flag bearer Vietnam Airlines expected to see a entire gross of VND32trn ( USD1. 78bn ) in 2010. up 30 % against in 2009 in the context of the planetary economic recovery. To recognize the turnover. the bearer estimated that it would hold to transport more than 11mn riders in 2010. In 2010. positive marks are based on its good public presentation in 2009 which was in pronounced contrast to many air hoses globally confronting bankruptcy. losingss and laying-off of staff.

The bearer notched up its turnover in 2009 to VND 24. 5trn ( USD 1. 36bn ) . sacking a net income of VND150bn ( USD8. 3mn ) . The consequences chiefly stemmed from its focal point on the domestic market. It operated a series of new paths last twelvemonth. including Hanoi-Can Tho. Hanoi-Quy Nhon. Ho Chi Minh City-Dong Hoi. Hanoi-Tuy Hoa and Hanoi-Pleiku. Vietnam Airlines transported about 9. 3mn riders in 2009. a 6. 6 % addition from 2008. with Vietnamese clients accounting for up to about 6. 2mn. a y-o-y addition of 17. 6 % . It besides handled about 131. 220 metric tons of lading. up 2. 3 % from 2008. Of the sum. 87. 000 metric tons of lading was transported on domestic paths. a rise of about 13 % . The bearer besides reported a place tenancy rate of approximately 74 % for both local and international flights. To raise net net incomes. Vietnam Airlines implemented a broad scope of solutions to cut fees. therefore salvaging more than VND400bn ( USD22. 2mn ) last twelvemonth. by conserving fuel and rescheduling flights. it said. The air hose took full advantage of the planetary economic crisis to negociate with spouses to purchase and rent more new planes to better its fleet and remodel substructure to capitalise on chances that are opening up due to the recovery of the local and international economic system. Besides success in the domestic market. Vietnam Airlines saw certain accomplishments overseas.

The air hose besides co-operated with the Cambodia Government to jointly run National Cambodia Angkor Air from July 2009. In add-on to opening the Hanoi-Fukuoka path last October it took over from Japan Airlines the Hanoi-Kansai path in January with five flights a hebdomad. Contact information Vietnam Airlines 200 Nguyen Son Street. Bo De Ward. Long Bien District – Hanoi. Vietnam Tel: ( +84 4 ) 38320320 ; Facsimiles: ( +84 4 ) 38722375 Website: World Wide Web. vietnamair. com. vn 4. 2. Vinalines Company overview Vinalines is Vietnam’s largest state-owned group of companies. Its legion subordinates are active in nautical transit and securities firm. ship fixs. import-export. container services. terminal operation. cargo send oning. warehousing. and crew manning. The company besides has 50 % or bulk bets in a figure of international joint ventures. 15 including Gemartrans ( with France’s CGM. 51 % ) . Vijaco ( Vietnam/Japan ) . Phili Orient ( Vietnam/Singapore. 50 % ) . Transvina ( Vietnam/Japan. 75 % ) . Cosfi ( Vietnam/Singapore. 51 % ) and Ahlers-Inlaco ( Vietnam/Austria. 51 % ) . Vinalines besides has port operations in Ninh. Hai Phong. Nghe An. Da Nang. Quy Nhon. Nha Trang. Sai Gon. and Can Tho. The company has undergone a series of swift enlargements. modernisation and development undertakings over the past old ages. By the terminal of 2010. it has 139 vass with entire capacity of 2. 8 million ton. keeping 45 % entire capacity of the state.

Recent development In 2007. Vinalines has been assigned by the authorities to mobilise financess to develop Van Phong port and Lach Huyen port and new port in Ba Ria- Vung Tau. In August of that twelvemonth. Swiss bank Credit Suisse signed a memoranda with Vinalines to supply loans deserving USD700mn. As portion of the Financial Service Memorandum. Credit Suisse provided Vinalines with evaluations advisory. fund elevation. and hazard direction services. In the same twelvemonth. the authorities has instructed province giants Vinalines and PetroVietnam to purely adhere to the agenda approved for constructing a new port composite in the southern state of Ba Ria-Vung Tau. 90 kilometer south E of Ho Chi Minh City. Vinalines and PetroVietnam. the investors. have held negotiations with domestic and foreign Bankss like CitiGroup. Credit Suisse. Deutsch Bank. and Mizuho to procure recognition. In 2008. Vinalines has signed a contract with China Merchants Group ( CMG ) . a taking Chinese pudding stone. set uping a joint venture to construct the port. Has estimated to costUSD1bn. the port would be able to manage 100. 000-DWT vass. In 2010. the company submited to the govement the fasibility survey of the port. anticipating the contruction will get down in 2011. In 2008. Maersk A/S. Saigon Port Company and Vinalines formed a joint venture for Cai Mep International Terminal ( SP-SSA ) . two-wharf container and deepwater port with an investing value of USD 200 million.

The port has the fist test operation in the Begin of 2010 and has officially being runing from August 2010. In 2009 Mai Van Phuc. CEO of Vinalines said the corporation will go on to put in cardinal undertakings. despite the effects of the economic crisis both domestically and globally. It will acquire a VND15 trillion ( USD 862 million ) loan from the Bank for Investment and Development of Vietnam to run into the demand for capital. The loan would be put towards the edifice of ships and upgrading haven and logistics services planned for 2010. Phuc said. He added that Vinalines’ cardinal undertaking in the hereafter would be to construct a new pace for mending ships with a capacity of more than 10. 000 metric tons. The corporation would besides necessitate to upgrade its current shipyards to go more competitory. Vinalines’s gross in 2010 was VND20. 93 trillion ( $ 1. 2 billion ) . 16 % per cent higher than the old twelvemonth. It net income gained
VND 1. 241 trillion. increasing 40 % . Contact information Vietnam National Shipping Lines ( Vinalines ) 201 Kham Thien Street. Hanoi. Vietnam Tel: +84 4 851 7750 Facsimile: +84 4 511 3039 Web: World Wide Web. vinalines. com. vn 4. 3 Maersk Line Maersk Line is one of the taking line drive transporting companies in the universe. functioning clients all over the Earth. Maersk Line is a division of the A. P. Moller – Maersk Group and portions its same values and concern rule. i. e. to be a first. known and extremely respected group.

The Maersk Line fleet comprises of more than 500 vass and a figure of containers matching to more than 1. 900. 000 TEU. Maersk Line established its first representative office in Ho Chi Minh City in 1991. followed by a subdivision representative office in Ha Noi two old ages subsequently. Since so. together with the impressive development of trade in Vietnam. farther offices have been opened in Hai Phong. Da Nang. Quy Nhon. Nha Trang. Vung Tau and Can Tho. Maersk Line in Vietnam offers hebdomadal feeder goings to the chief hub ports in Asia such as Tanjung Pelepas. Singapore. and Kaohsiung. Kaohsiung acts as the connecting point supplying entree to the company’s worldwide web. In add-on to Maersk Line. A. P. Moller holds a 75 % interest in APM-Saigon Shipping Company ( APM-Saigon ) holding its ain dedicated staff in all major ports in Vietnam. guaranting infinite protection and favourable intervention to Maersk Line’s clients in instance of jobs. The joint venture has a staff of 180 and operates 20 vass. organizing what it claims is the country’s most comprehensive domestic transportation web. Contact information Maersk Line 26 Phung Khac Khoan Street. territory 1 HCMC Tel: ( +84 ) 08 3824 3252 Customer service: Tel: ( +84 ) 08 238 566 Facsimile: ( +84 ) 08 238 583

VI. Major Transporting Lines and Agency Representation Shipping Line APL CMA-CGM CNC Cosco CSAV – Norasia CSCL CT Navigation Dongnama Evergreen Hamburg Sud Hanjin Hapag Lloyd Heung – A Hyundai Merchant Marine IRISL Agency APL-NOL Vietnam CMA-CGM Vietnam Vietfracht Cosfi Agency Status Joint Venture Partner/Agency Affiliation foreign- Not Applicable Golden Lotus ( Private ) Vietfracht Safi ( Vinalines ) Ben Line Agencies Vosa ( Vinalines ) Private Company Safi ( Vinalines ) Phuoc Vinh Son ( Private ) Ben Line Agencies SGN Logistics ( Private ) Vinatrans Vietfracht Gemadept

Fully owned Joint Venture ( 51 % ) 3rd Party Agent Joint Venture ( 49 % ) Ben Line 3rd Party Agent China Shipping Joint Venture Vietnam ( 49 % ) Integrity Shipping 3rd Party Agent Safi 3rd Party Agent Evergreen Joint Venture Vietnam ( 49 % ) Ben Line 3rd Party Agent Hanjin Vietnam Joint Venture ( 49 % ) Hapag Lloyd Joint Venture Vietnam ( 49 % ) Vietfracht 3rd Party Agent Huu Nghi 3rd Party Agent Shipping SGN Logistics 3rd Party Agent.

Joint Venture ( 51 % ) KMTC Gemartrans 3rd Party Agent Maersk Maerks Vietnam Fully foreignowned MISC Gemartrans 3rd Party Agent MOL MOL Vietnam Fully foreignowned MSC MSC Vietnam Joint Venture ( 49 % ) New Econ Line Galaxy 3rd Party Agent NYK NYK Line Joint Venture Vietnam ( 51 % ) OOCL OOCL Vietnam Joint Venture ( 49 % ) PDZ Safi 3rd Party Agent PIL/ACL ITL Joint Venture ( 49 % ) RCL RCL Vietnam Joint Venture ( 49 % ) Samudera PAL 3rd Party Agent Siam Paetra SGN Logistics 3rd Party Agent Sinokor Sinokor Vietnam Joint Venture ( 49 % ) STX Pan- MACS Shipping 3rd Party Agent Ocean SYMS Ben Line 3rd Party Agent TS Lines TS Lines 3rd Party Agent Vietnam UASC Vinafreight 3rd Party Agent Wan Hai Lines Phoenix 3rd Party Agent Yang Ming Yang Ming Joint Venture Vietnam ( 49 % ) Zim/Gold Star Star Shipping Joint Venture Line ( 49 % ) Beginning: APL

“K” Line Vietnam

Hai Minh ( Private ) Vinalines Not Applicable Vinalines Not Applicable Viconship ( Vinalines ) Gemadept Vosa ( Vinalines ) Gemadept Safi – Vinalines ITL Shipping ( Private ) Vinatrans Private Company Private Company Gemadept Private Company Ben Line Agencies Viconship Jardine Shipping Private Company Continental ( Private ) Jardine Transporting