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Vietnam - A key hub for global trade

Off to South East Asia: In Vietnam, globalization is once again gathering speed.

Jean Cassiot, Managing Director Air & Sea Logistics Vietnam, explains how DACHSER is building bridges from Vietnam to markets in the West and throughout Asia.

West Lake, Hanoi - at two locations in Hanoi and Ho Chi Minh City, DACHSER handles orders mainly from the clothing, automotive, heavy, and plastics industries

Mr. Cassiot, economically speaking, Vietnam is really taking off. In 2016, its exports amounted to just under USD 176 billion, an increase of more than eight percent compared to the previous year. What are the reasons for this upswing?

The country is transforming from a producer of agricultural goods and cheap textiles to an industrial location with high-tech ambitions. What effect will this have?

In Vietnam’s major cities, there is already a thriving middle class that is increasingly interested in high education standards as well as consumer goods. By 2020, the size of this group will have doubled to 33 million people. This also means that there is no shortage of qualified and motivated workers for manufacturers and the retail sector in Vietnam.

How is the country positioned internationally?

For an agricultural and raw materials economy to become an industrial location in just 30 years is certainly a breathtaking accomplishment. It is due primarily to the numerous trade agreements that Vietnam has signed over the past few years, most recently with the European Union (EVFTA). Vietnam is also a member of the Trans-Pacific Partnership (TPP). Once an emerging economy, the country has become a respected middle-income country.

Where is the country headed?

Even though Vietnam also has its share of economic challenges to solve, the conditions are right for further growth. If you take a closer look at Vietnam’s trade partners, it’s clear to see how important the country is, especially for intra-Asian trade. Its top export partner is China, followed by the other ASEAN countries and India. That alone already represents a huge market with over two billion people. In 2016, exports just to China totaled USD 22 billion.

How is DACHSER adjusting to such positive prospects?

I expect Vietnam to become a key hub for global trade. That’s why we want to massively expand our subsidiaries in Hanoi and Ho Chi Minh City as well as our freight capacity. We hope that the government will actually follow through with its plans to improve the ports and infrastructure. That’s the only way for Vietnam to grow.

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Incoterms 2020

A new version of the Incoterms will take effect on January 1, 2020, and will include a number of changes. The terms of delivery issued by the International Chamber of Commerce regulate essential buyer and seller obligations in international trade, such as transfer of goods to the buyer, transport costs, liability for loss of and damage to goods, and insurance costs.

With the adaptation of the Incoterms 2020 to current global trading practices, the new version is very up-to-date and practice oriented. The aim of the revision was to make the Incoterms clauses more user-friendly. For example, their presentation has been revised to make it easier for users to select the appropriate clause. In addition, the order of the clauses has been changed, and revised user instructions have been added to each clause.

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