A logistics center launched in Hanoi by DHL Express, the world’s international express service provider, will enable local businesses to access global markets through good services.

Delegates attend the opening ceremony of Hanoi's service center. Photo: DHL Express

The Hanoi West Service Center, which costs an investment of approximately EUR2 million (US$1.98 million), is expected to contribute to Hanoi's logistics sector amid increasing investment inflows.

Bernardo Bautista, General Director and Country Manager of DHL Express Vietnam, said: "We are optimistic that the nation's exports and imports will continue to rise, including the northern region where several of the largest exporters from the technology sector are located."

Vietnam will continue to be one of the top 10 countries for trade volume growth in the next five years, the DHL Trade Growth Atlas highlighted.

According to the General Statistics Office of Vietnam, the Southeast Asian country recorded double-digit cumulative export growth in the first nine months of 2022, with electronics and garments among the top export commodities.

From the latest DHL Trade Growth Atlas, Vietnam, among the other ASEAN countries, is also forecasted to lead the world in export growth over the next five years. The IMF also estimates that Vietnam will see an increase in trade volume.

The latest center is also the 100th facility in the Asia Pacific region (excluding China) to achieve TAPA "A" certification by the Transported Asset Protection Association.

Handing over the 100th TAPA "A" Certification in Asia Pacific to DHL Express at the opening ceremony, TAPA Certified Expert and Chairman of TAPA APAC Tony Lugg, said TAPA Class "A" is the highest level of its security standards and denotes a facility as one that offers "elevated security protection."

Many other logistics providers are interested in investing in Hanoi. In August, Hanoi also welcomed a transportation and logistics center and a cross-belt automatic sorting system owned by Vietnam Post, located in Me Linh District, on the city's outskirts.

The municipal authority continues to provide incentive policies to attract major logistics providers so that the city would gradually turn into a logistics hub in the north.

By 2025, Hanoi's logistics sector is expected to contribute 9-11% of the GRDP with an average growth rate of 17-21%, while logistics costs would go down to 14-17% of the GRDP. The rate of logistics outsourcing would reduce to 50-60%.