(Tiểu luận) analysis of transport services in vietnama case of dhl

Evaluation of DHL Penetration into Vietnam...32 Trang 3 2 Trang 4 3LIST OF ABBREVIATION WORDSAbbreviation DefinitionAFAS ASEAN Framework Agreement on ServicesASEAN Association of South

TABLE OF CONTENT

TABLE OF CONTENT 1

LIST OF ABBREVIATION WORDS 3

LIST OF FIGURES 5

LIST OF TABLES 5

INTRODUCTION 6

CHAPTER 1: OVERVIEW OF THE TRANSPORT SERVICES SECTOR IN VIETNAM AND DHL 7

1.1 Overview of GATS 7

1.2 Overview of the Transport services sector 8

1.3 Overview of DHL 10

1.3.1 Business background 10

1.3.2 Services provided 11

1.3.3 Latest updates 12

CHAPTER 2: SITUATION OF THE TRANSPORT SERVICES SECTOR IN VIETNAM AND HOW DHL DELIVERED SERVICES TO VIETNAM 13

2.1 Analysis of the Transport services sector in Vietnam 13

2.1.1 Analysis of the current situation of transport services in Vietnam 13

2.1.1.1 The infrastructure 13

2.1.1.2 Capacity 14

2.1.2 Analysis of the sub-sectors of transport services in Vietnam - Logistics services 15

2.1.3 Roles of the transport industry in Vietnam 17

2.2 Analysis of how DHL delivered services to Vietnam 19

2.2.1 Progress of DHL penetration into Vietnam 19

2.2.2 DHL penetration strategy into the Vietnamese market 20

2.2.2.1 Strategy of International Business 20

2.2.2.2 Mode of Supply 21

2.2.3 Changes in DHL strategy in offering services 22

2.2.3.1 How DHL has evolved its International Business strategy 22

2.2.3.2 How DHL has evolved its Mode of Supply 23

2.3 Governmental Policies on Trade in Services 24

2.3.1 Vietnamese governmental policies 24

2.3.2 Partners' governmental policies 26

2.3.3 Comparison of the benefits that each country's policy brings to DHL 29

CHAPTER 3: FINDINGS 32

3.1 Evaluation of DHL Penetration into Vietnam 32

3.2 Prospects of DHL delivering services in Vietnam 34

2REFERENCES 36

3LIST OF ABBREVIATION WORDS

AFAS ASEAN Framework Agreement on Services

ASEAN Association of Southeast Asian Nations

CAAS Civil Aviation Authority of Singapore

CAAV Civil Aviation Authority of Vietnam

CAGR Compounded annual growth rate

COP26 26th Conference of the Parties to the United Nations

Framework Convention on Climate Change

CPTPP Comprehensive and Progressive Agreement for Trans-Pacific

Partnership

DWT Deadweight tonnage

EVFTA EU-Vietnam Free Trade Agreement

FOE Foreign-owned enterprise

FTAs Free trade agreements

GATS General Agreement on Trade in Services

GDP Gross domestic product

GMS Greater Mekong Subregion

IATA International Air Transport Association

IMF International Monetary Fund

IMO International marine Organization

LPI Logistics Performance Index

4LTA Land Transport Authority

MFN Most-favored-nation

MOT Ministry of Transport

MPA Marine and Port Authority of Singapore

OECD Organization for Economic Cooperation and DevelopmentPPPs Public-private partnerships

SMEs Small and medium-sized organizations

WTO World Trade Organization

VLA Vietnam Logistics Business Association

VMA Vietnam Maritime Administration

VNPT Vietnam Post and Telecommunication Corporation

5LIST OF FIGURESFigure 2.1 Traffic of passengers and cargo by each mode of transport in 2020 14Figure 2.2 The total volume of goods through seaports, inland waterway ports andairports in the period 2015-2021 16

LIST OF TABLESTable 2.1 Comparison of the benefits that policy of Vietnam, Singapore, Cambodiabrings to DHL 31

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6INTRODUCTIONThe development of a country depends on transport, which connects differenteconomic sectors, markets and communities, facilitates trade and enhances the quality

of life Furthermore, transportation companies need to constantly innovate, upgradetheir capabilities and adopt advanced technologies in their operations to satisfy thegrowing expectations of consumers regarding quality, reliability andcost-effectiveness, especially in the framework of economic integration andglobalization

This research concentrates on the transportation service industry in Vietnam.Transportation is critical to the country's economic development, and as trade expands,

so does the demand for efficient and dependable transportation services This researchwill focus on DHL, a significant international logistics business with operations inVietnam

DHL is one of the world's largest logistics companies It has been presented inVietnam since 1988 and is currently the market leader in logistics services DHL'soperations in Vietnam have aided the expansion and development of the country'stransportation service industry The company's infrastructure, technology, and skilledlabor investments have made the transportation industry more efficient and effective.For example, DHL has expanded its distribution center and warehouse network inVietnam to improve the industry's supply chain management and logistics abilities.The purpose of this research is to examine the transportation service industry inVietnam and how DHL delivers its services to this market The research will explorevarious aspects such as the current situation and significance of transportation services

in Vietnam, the strategy adopted by DHL to provide its services to this market, DHL'sachievements in expanding its services in Vietnam, and the regulations of theVietnamese government on service trade The research has three main chapters

The first chapter presents an overview of the transportation service industry inVietnam It also explains the General Agreement on Trade in Services (GATS) andintroduces DHL, a leading global corporation in logistics and transportation that servesbusinesses and customers around the world The second chapter then analysis how

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7DHL delivered services to Vietnam and the mode of supply DHL used It also analyzesgovernmental policies on trade in services in Vietnam and other partner countries,which impacted DHL's operations in Vietnam The final chapter presents the researchfindings, drawing on the insights gained from the preceding chapters This chapterevaluates DHL's penetration into Vietnam and the prospects of DHL deliveringservices in Vietnam.

Overall, this research paper contributes to the understanding of the transportservices sector in Vietnam and the operations of DHL in the country The paperprovides insights valuable to policymakers, transport service providers, andresearchers interested in the sector's growth and development

CHAPTER 1: OVERVIEW OF THE TRANSPORT SERVICES SECTOR

IN VIETNAM AND DHL1.1 Overview of GATS

The General Agreement on Trade in Services (GATS) is a multilateralframework of rules and principles for trade in services, which was established by theWorld Trade Organization (WTO) in 1995 The GATS covers all services, except thosesupplied by governments on a non-commercial basis or related to air traffic rights TheGATS aims to create a credible and reliable system of international trade rules, ensurefair and equitable treatment of all participants, stimulate economic activity throughguaranteed policy bindings, and promote trade and development through progressiveliberalization The GATS defines trade in services in terms of four modes of supply:cross-border supply, consumption abroad, commercial presence, and presence ofnatural persons Each WTO member has a schedule of specific commitments thatidentifies the extent to which it grants market access and national treatment in specificservice sectors The GATS also establishes broad requirements and disciplinesapplicable to all service industries, such as transparency, domestic regulation,recognition, payments and transfers, safeguards, and dispute settlement The GATS isnot a static agreement, but rather a dynamic one that envisages continuing negotiations

to reach a greater level of liberalization

8The GATS offers a structure for its member countries to discuss theliberalization of trade in services Member countries can make explicit commitments

to liberalize trade in specific service sectors or supply methods These commitmentsare legally binding and must be implemented in a transparent and nondiscriminatorymanner The GATS also provides regulations for governing trade in services, such asprotecting intellectual property rights and recognizing qualifications

Vietnam joined the WTO and GATS in 2007, after more than a decade ofnegotiations Vietnam has committed to apply in 11 service sectors and Vietnam hastaken a number of measures to improve the legal framework on trade in services Forexample, it has established a legal framework for electronic transactions, enhancedprotection of intellectual property rights, and implemented national competition laws

In addition, Vietnam has committed to liberalizing its service sector and ensuring fairand transparent policies for international service companies

GATS benefits Vietnam in both exporting and importing services In exportingservices, Vietnam can access new markets and opportunities for its service industries.And as an importing country, Vietnam can attract foreign investment to improve thequality and efficiency of domestic service industries, such as banking,telecommunications and logistics GATS also helps Vietnam integrate into the globaleconomy, improving its innovation capacity to compete with other countries.Overall, the GATS has played an essential role in encouraging furtherliberalization of cross-border trade in services Especially in Vietnam, GATS hascontributed to promoting the development of the service industry, attracting a lot offoreign investment capital, and contributing to the country's sustainable development

1.2 Overview of the Transport services sector

Vietnam's transportation is a pivotal aspect of the nation's economy It linkspeople and goods, foments commerce, and fuels the expansion of various otherindustries like manufacturing, agriculture, and services The transport service spherecomprises four primary kinds: air transport, land transport, maritime transport, andservices that support all modes of transportation

9Air transport is the swiftest and most expedient way to voyage within andbeyond Vietnam It encompasses the conveyance of both passengers and cargo, inaddition to domestic and international routes As per the Civil Aviation Authority ofVietnam (CAAV), the collective number of passengers in 2022 amounted to astaggering 96.8 million, exhibiting an 18.7% escalation in contrast to the precedingyear The total cargo volume also witnessed a 16.4% augmentation, weighing in at 1.4million tons.

Vietnam's transportation sector improving with an array of options for movingpeople and goods, from roadways to trains As of 2022, the Ministry of Transportreports a total of 328,000 kilometers of roads, including both national highways andprovincial and local routes Motorcycles and cars pepper the streets, with a staggering

51 million registered motorcycles and 11 million cars Rail travel, however, saw aslight decline in 2022, with only 11 million passengers and 5.8 million tons of cargotransported

Vietnam's connection to the world is primarily sustained through maritimetransport, encompassing the sea and inland waterway transport, as well as an intricatenetwork of ports, terminals and shipping lines As per the Vietnam MaritimeAdministration (VMA), the scale of cargo handled by Vietnamese ports in 2022skyrocketed to a whopping 692 million tons, signifying a 10.6% surge over the prioryear The number of passengers ferried by sea transport also witnessed an impressiveupswing, with a 12.4% increase to 4.5 million in 2022 The inland waterways ofVietnam stretched out to a total length of 17,500 km in 2022, of which 9,000 km wereavailable for vessels carrying over 100 tons Furthermore, as of 2022, Vietnam boasted

a striking 130,000 registered vessels, with 110,000 inland waterway vessels and20,000 sea-faring ships

But it's not just the physical transportation that keeps this sector moving.Behind the scenes, a host of services work tirelessly to ensure smooth operations.Warehousing, logistics, freight forwarding, customs clearance, inspection, insurance,and maintenance services all contribute to the wealth of Vietnam's transportationindustry According to the General Statistics Office, these vital services generated an

10estimated $12 billion USD in 2022, an increase of 15% from the previous year, andemployed over one million workers.

Vietnam's transport service industry is the potential, to render a crucialcontribution to the country's economic and societal progress Although beset bynumerous challenges in the face of globalization and digitalization, it also presentsmyriad opportunities Vietnam's transportation is slated to burgeon in the future PerResearch And Markets, the market is anticipated to mushroom at a CAGR of 3.5%from 2021 to 2026, propelled by factors such as escalated demand for logisticsservices and augmented infrastructure investment

1.3 Overview of DHL

DHL reigns as a global of logistics and transportation, endowing an extensivearray of services to an array of businesses and customers all over the world As one ofthe foremost logistics companies, DHL commands of 380,000 workers in over 220countries and territories

DHL was founded in 1969 by Adrian Dalsey, Larry Hillblom, and Robert Lynn,with the initials of their last names forming the company name Initially, DHLprovided document delivery services between San Francisco and Honolulu using acombination of air and sea transportation But as time elapsed, the company surgedahead and expanded its services to include international express delivery and freightforwarding, making it a leading logistics and transportation provider

In 2002, DHL was acquired by Deutsche Post AG, a German postal andlogistics company, and became part of the Deutsche Post DHL Group Today, thegroup is divided into two main business units: the Post - eCommerce - Parcel (PeP)division, which includes the German postal service and DHL Parcel Europe, and theDHL Supply Chain and DHL Global Forwarding division, which provides logisticsand transportation services

In Vietnam, DHL has been operating since 1988 on the basis of an agencycontract with Vietnam Posts and Telecommunications Corporation (VNPT) In 2007,

11DHL and VNPT established a joint venture DHL - VNPT Express, accounting forabout 40% of the market share of express freight in Vietnam DHL also set up manycenters in cities such as Ho Chi Minh City, Hanoi, Da Nang and Hai Phong Inaddition, DHL has the largest fleet of transport vehicles in the industry.

DHL provides comprehensive logistics services to customers from varioussectors, including international express, air and ocean freight, supply chainmanagement and e-commerce services DHL always strives to innovate and improveservice quality to meet the increasing demands of the Vietnamese market DHL hasinvested millions of USD in building modern distribution centers at Tan Son NhatInternational Airport (2010) and Noi Bai International Airport (2011), capable ofhandling thousands of import and export shipments per days DHL also launched newservices such as DHL Parcel Metro Same Day (2018) to support its e-commercebusiness According to DHL's latest report, the company's revenue in Vietnam in 2022reached $1.2 billion, up 15% year-on-year The number of DHL employees in Vietnamhas also increased to nearly 3,000 people, serving more than 40,000 customers acrossthe country

DHL provides a wide range of logistics and transportation services, including:

- DHL Express: Provides door-to-door delivery of documents and packagesworldwide, with tracking and delivery confirmation In 2020, DHL Express had aglobal revenue of 20.8 billion euros and a network of over 280 service points

- DHL Global Forwarding: Offers air and ocean freight forwarding services,including customs clearance and insurance In 2020, DHL Global Forwarding had aglobal revenue of 15.5 billion euros and managed over 2.5 million TEUs of oceanfreight and over 600,000 tonnes of air freight

- DHL Supply Chain: Unlocks end-to-end supply chain management solutions,encompassing warehousing, distribution, and transportation In the year 2020, DHLSupply Chain dominated the global stage with a revenue of 17.7 billion euros,managing over 10,000 warehouses and distribution centers, scattered throughout theworld

- DHL eCommerce: Offers domestic and international shipping solutions fore-commerce businesses In 2020, DHL eCommerce had a global revenue of 5.5 billioneuros and delivered over 1.3 billion parcels worldwide

- DHL Freight: Provides road freight services across Europe, Asia, and theAmericas In 2020, DHL Freight had a global revenue of 4.5 billion euros andmanaged over 3.2 million shipments worldwide

- DHL Parcel: Offers parcel delivery services within Europe In 2020, DHLParcel had a global revenue of 3.5 billion euros and delivered over 600 million parcels

in Europe

DHL's annual report forecasts a meteoric rise in revenue, surging to a $1.2billion by 2022, marking a phenomenal 15% leap from last year's figures DHLVietnam's warehouse centers sprawl across major metropolises like Hanoi, Hai Phong,

Da Nang, Nha Trang, and Can Tho, blossoming into a vast network of logisticalprowess DHL Vietnam has harnessed the power of cutting-edge technology to elevateefficiency and sustainability, embracing electrifying cars, airborne drones, andingenious artificial intelligence Besides, DHL has achieved an array of notablemilestones in 2021, such as:

- Ranked by Anphabe as one of the best places to work in Vietnam

- Awarded "Best International Logistics Service Provider" by Vietnam LogisticsAssociation by Vietnam Logistics Association

- Award "Best Customer Service" by Vietnam E-Commerce Association

- 30% reduction in CO2 emissions per shipment compared to 2007

- Implement socially responsible projects such as “GoTeach”, “GoGreen” and

“GoHelp”

13CHAPTER 2: SITUATION OF THE TRANSPORT SERVICES SECTOR INVIETNAM AND HOW DHL DELIVERED SERVICES TO VIETNAM2.1 Analysis of the Transport services sector in Vietnam

2.1.1.1 The infrastructure

The infrastructure system of Vietnam's transport network in the immediatefuture is still limited compared to other countries in the region In particular, the roadsystem has few expressway networks, a narrow road surface area, and limited trafficcapacity The railway system has not been developed to the fullest extent, there are stillmany bottlenecks and speed-limiting crossings, leading to the railway capacity notbeing fully promoted At the same time, the railway system has not yet reached themaximum of provinces Vietnam's seaport system still has limited capacity to receivelarge vessels

However, the development strategies of the state have promoted the completion

of the transport network in the country with positive changes within 10 years ofimplementing the Socio-Economic Development Strategy for the period 2011-2020.Typically, nearly 1,800km of highways have been completed, of which nearly 1,100kmhave been put into operation International airports have been renovated and upgraded,and new ones built in key areas such as Van Don and Phu Quoc Up to now, thecountry has 9 international airports and 13 domestic airports A series of internationalgateway seaports such as Cai Mep - Thi Vai, and Lach Huyen have been invested inand built capable of receiving large vessels from 130,000 tons to 200,000 tons (DWT).Regional hub ports such as Nghi Son, Da Nang, Quy Nhon, Khanh Hoa or Can Thohave also been renovated and upgraded, bringing the total capacity of ports from 420million tons (in 2011) to about 580 million tons per year

In general, Vietnam's transport infrastructure still meets the domestic transportdemand quite well However, to be able to develop further and create a foothold in theinternational transport market, Vietnam still needs investment and development fromthe state And now, Vietnam has been doing a very good job of innovation and

14development with economic development strategies with transportation as the focus ofdevelopment.

2.1.1.2 Capacity

Besides the development of infrastructure, the management and operationcapacity of Vietnam's transport services has also increased significantly Vietnam'stransport service industry operates in 4 main types: road, railway, waterway and air.Depending on the object of service is passenger or cargo, the proportion of eachtransport model will be different However, the most dominant is still road transportbecause of its spread and flexibility And the railway has the smallest scale due to theinflexible fixation of the route despite the large capacity

According to the 2020 report of the General Statistics Office, road accounts forthe highest proportion of passenger transport with 76.5% of total passenger kilometers,followed by air at 15.3%, railway at 4.7%, and waterway at 3.5% In freight transport,the road still accounts for the highest proportion with 61.4% of the totalton-kilometers The next positions have a significant change when water transportaccounts for 19.8%, followed by air transport at 16.7%, and railway with an extremelysmall share at 2.1%

In general, freight transportation in 2022 in all sectors will increase According

to statistics published at the "Hội nghị tổng kết công tác năm 2022 và triển khai kếhoạch năm 2023", freight volume in 2022 is estimated at 2,009 million tons, up 23.7%over the same period In which, aviation grew by 3%, road by 22.7%, waterway by26.9%, sea by 27.9%, railway by 9% Passenger transport in 2022 was estimated at3,664 million passengers, up 52.8% over the same period in 2021 In which, aviationincreased by 224.6%, sea route increased by 56.7%, railway increased by 205.6%,road increased by 51.6%, waterways increased by 52.9%

Along with that, Vietnam ranks first in the list of 25 countries with thefastest-recovering domestic aviation market in the world assessed by the InternationalAir Transport Association (IATA) There are 3 ports (Lạch Huyện - Hải Phòng, Cát Lái

- TP Hồ Chí Minh và Cái Mép - Bà Rịa - Vũng Tàu) in the top 100 container portswith the largest cargo throughput in the world in 2022 according to Lloyd's List (UK).Vietnam is ranked 39th with the LPI (Logistics Performance Index) according to theWorld Bank's 2018 announcement

With the current development of information technology and globalization,logistics has become one of the key factors determining the development of a country.Logistics is not only to ensure the smooth operation of the domestic economy but also

a tool to help that country reach out to develop into the world market Even inVietnam, the development of information technology and globalization is alsohappening very quickly when e-commerce platforms gradually dominate in the trend

of consumption and cross-border purchases also become popular variable andnormalization Therefore, logistics has become the top development goal of ourcountry Along with the appearance and penetration of many companies providinglogistics services, the state also focused on investing and offering many strategies tosupport the rapid development of this industry

Logistics services in Vietnam have increasingly markedly developed andcreated a premise for the economic development of the country The most obviousdevelopment of logistics services is reflected in the amount of goods thattransshipment ports can meet And according to the report of the General StatisticsOffice, the total volume of goods through seaports, inland waterway ports and airports

in Vietnam in the period 2015-2021 has markedly strong growth Realizing such astrong development year by year, the Prime Minister approved the "Action plan toimprove competitiveness and develop Vietnam's logistics services by 2025" and set atarget for the contribution rate The contribution of the logistics service industry toGDP will reach 8%-10% by 2025

Understanding that logistics is the focus of economic development, Vietnamcurrently has many policies to promote and motivate the domestic logistics industry aswell as create conditions for the global logistics industry In addition, the free tradeagreements of Vietnam and other developed countries and regions are also a greatincentive to create competitive advantages in terms of cost and time for theVietnamese logistics market

According to the General Statistics Office, there are more than 5000 enterprisesoperating in the logistics market in Vietnam Of these, small and medium-sizedVietnamese enterprises account for 89%, joint-venture enterprises account for 10%and the remaining 1% are enterprises with foreign capital Despite only accounting for

171% of the business market share, foreign-owned enterprises are currently providingcross-border logistics services, with many of the biggest names in the global logisticsindustry.

According to the Vietnam Logistics Research and Development Institute, by

2030, our country's logistics industry needs an additional 2.2 million workers, as well

as a need for about 200,000 high-quality logistics workers with professionalqualifications and certificates, professional skills and foreign language ability.Although Vietnam is a country with a young population and is making efforts to trainhigh-quality young human resources, it has not been able to meet the entire demandfor human resources in the industry Therefore, to be able to develop the logisticsindustry, Vietnam needs to make more efforts in creating high-quality human resources

to promote the development of Vietnam's logistics industry

Thanks to favorable conditions and efforts from both enterprises and the state,Vietnam's logistics industry has now achieved initial achievements as a premise fordevelopment and creating a foothold in the world logistics market and ranks fourth inthe ASEAN region after Singapore, Malaysia, and Thailand According to the WorldBank Report 2018, Vietnam's logistics performance index (LPI) ranks 39 out of 160countries participating in the study and ranks 3rd in the ASEAN region afterSingapore, and Thailand According to the rankings of Agility 2022, the Vietnameselogistics market is ranked 11th in the group of 50 global emerging logistics markets.According to the Vietnam Association of Logistics Service Enterprises, the growth rate

of the logistics industry in Vietnam in recent years has reached about 14 - 16%

Transport is considered as the lifeblood of a country's development Because itnot only helps to create more favorable conditions for the development of the nationaleconomy and international integration, but also creates more favorable conditions forthe cultural and social development of the country

Economic development - integration

Transportation services play a vital role in the development of the nationaleconomy As a trade bridge between key economic regions of the country Transport

18helps to connect industries and production units with each other, between productionareas and consumption areas, urban and rural areas, and lowland areas Contributing tomaking the economy become a unified block From there, creating conditions toexpand the market and production of regional specialties.

Not only acting as a bridge between regions in the country, but transportationalso plays an extremely important part in the economic connection between Vietnamand developed countries and regions around the world Contributing to bringingVietnamese production and agriculture to the world market For example, Vietnam'sseasonal or short-storage agricultural products have now been exported to many parts

of the world thanks to the development of the transportation system, which shortenstransportation time

The development of transportation contributes both directly and indirectly tothe national economy The import-export market grew strongly, Vietnam'simport-export turnover in 2021 reached US$668.54 billion, up 22.6% over the sameperiod in 2020, of which exports increased by 19%; imports increased by 26.5%.According to the Report "Competitive Assessment of the Organization for EconomicCooperation and Development (OECD), Vietnam's logistics industry achieves anaverage growth rate of 12%-14% per year, contributing to GDP from 4%- 5%

Moreover, the convenience of transportation also helps people in remote areasimprove their knowledge, creating easier access to more developed areas And viceversa, helping people in developed economic regions broaden their view of their

19country and gain more understanding about the ethnic groups in the territory ofVietnam With a broader scale, the development of transportation makes it easier toconnect with developed countries and regions around the world At the same time, itmakes it easier for people to access the world's perspective when it is easy to go to thatarea And more is to attract people from other countries to Vietnam.

In addition, the strong development of transportation also creates more jobs tohelp the nation's people have income to improve their lives, thereby improving thequality of society The stronger the development, the more jobs are created, the betterthe quality of life of each person is, creating a more developed society along with thedevelopment of the country's economy

2.2 Analysis of how DHL delivered services to Vietnam

DHL has been a market leader in the transport services sector in Vietnam for 35years Through the years, the company has made consistent progress in penetrating theVietnamese market and providing transport services across the entire country

In 1988, when Vietnam began implementing market-oriented economies andopening its economy to foreign trade and investments, the firm grasped theopportunity to begin providing logistics and international transportation services in thecountry From its home country - Germany to Vietnam market, DHL established itsfirst representative office in Saigon (currently known as Ho Chi Minh City) under acontract with Vietnam Posts and Telecommunication Corporation A few years later,DHL was granted the license to officially operate as a foreign-owned enterprise (FOE)after Vietnam began allowing foreign corporations to own 100 percent of a company

in Vietnam DHL established relationships with local partners by forming a jointventure with Vietnam Post and Telecommunication Corporation (VNPT) in 2007 toincrease its market penetration in Vietnam

Since then, DHL has expanded its operations throughout Vietnam andconsistently maintained its top-ranked position in the transport services sector Thereare numerous reasons for their market penetration success in Vietnam