Singaporean firms keen on Vietnam’s logistics sector

More and more Singaporean companies are showing interests in logistics sector in Vietnam and seeking investment and expansion opportunities in this field, IE Singapore director for Vietnam and Cambodia, Chiong Woan Shin, said at the ceremony of its opening of Indo-Trans Keppel Logistics Vietnam Joint Venture Co (ITL Keppel) in Hiep Phuoc distribution centre in HCM City on May 20.

One day later, IE Singapore also opened another JV in Tien Son, Bac Ninh province.

The inauguration of these two distribution centres marks the expansion of Singaporean firms in logistics sector in Vietnam. Other Singaporean logisticians are operating in Vietnam such as APL Logistics, CWT Globelink, G-Link Express Logistics, Mapletree Logistics Trust and YCH Group.

Vietnam is Singapore’s 14th biggest trade partner with the two-way trade growth at 6.6 percent during recent five years, reaching $13.4 billion in 2009.

Singapore is Vietnam’s fifth biggest foreign investor with over 770 projects capitalised at $17 billion till the end of 2009.

In related news, Singapore-based ITL Keppel recently inked a deal with Tan Binh Manufacture Trading Import Export Service & Investment Joint Stock Co., or Tanimex, on Thursday to cooperate in logistics service.

Tran Tuan Anh, ITL’s general director, said that the two signatories would set up ITL-Trans Keppel Tanimex Logistics Co, Ltd with a registered capital of $3 million. Of which, ITL represents 80 percent in the joint venture.

The enterprise plans to launch its 15,000-square-metre depot into operation in Tan Binh Industrial Park in HCM City in July. Located next to Tan Son Nhat International Airport, the depot will serve enterprises in the pharmacy, food and electronics sectors.

ITL also opened Hiep Phuoc Distribution Centre on Thursday, covering a 4,000-square-metre area. The enterprise will inaugurate Tien Son Distribution Centre covering more than 4,500 square meters in the Northern Province of Bac Ninh.

ITL won a business license in Vietnam in 2005 with the registered capital of $1.2 million. The enterprise reached an annual growth rate of 25 percent in recent years and obtained $3.2 million in revenue in 2009.

TBKTSG

Tags: vietnam logistics