Express delivery giants like DHL and UPS are increasing their transport capacity to Vietnam thanks to rising demand due to the Covid-19 pandemic.
Germany-headquartered DHL Express recently announced a new delivery route from Hong Kong to Ho Chi Minh City using wide-body Airbus A330 aircraft.
There would be six one-way trips a week, each with a capacity of up to 62 tons of cargo, it said.
This is to mainly serve the rising online shopping demand, it added.
It will also upgrade the aircraft used on the Hanoi – Hong Kong route from Boeing 737-400s to 737-800s to serve Vietnam’s surging exports.
Most consumers are now looking at delivery speed as a key component of their shopping experience, Bernardo Bautista, CEO of DHL Express Vietnam said.
Last year U.S.-based UPS launched its first service to Vietnam from its hub in China to increase delivery speed.
Vietnam does not have a dedicated cargo airline, and industry insiders estimate foreign companies hold an 80 percent aviation logistics market share.
Johnathan Hanh Nguyen, chairman of retail company Imex Pan Pacific Group, recently announced plans to establish a cargo airline at an investment of $100 million.
Vietnam’s e-commerce market expanded by 18 percent last year to $11.8 billion, the only country in Southeast Asia to record double-digit growth amid the pandemic, according to the Vietnam e-Commerce and Digital Economy Agency.