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Tag: Logistics

  • Kerry Logistics bounces back in Q2

    Kerry Logistics bounces back in Q2

    Kerry Logistics’ performance in the first half of this year may have already seen the company ‘bottom out’ after the sharp drop from the extreme highs during the pandemic, as the Hong Kong-based logistics player saw 30 percent quarter-on-quarter growth for Q2.

    The abnormal highs seen in 2021 and 2022 have made an impact on year-on-year comparisons with rates slowly going back to the levels seen pre-pandemic. In its interim results, the company recorded a net profit of HK$368 million for the first half, down 85 percent versus the same period last year, with revenue dropping 47 percent year-on-year to HK$25,315 million.

    Vic Cheung, Managing Director of Kerry Logistics Network, said: “In 2023 1H, global trade volume and growth remained subdued. Freight rates and volume stayed depressed while supply chain demand remained stagnant. During the three years ended 31 December 2022, KLN Group’s flexible and innovative supply chain solutions enabled it to benefit from the supply and demand mismatch during the pandemic and achieved exceptionally good results. However, the extraordinary circumstances in 2021 and 2022 proved an anomaly that distorted year-on-year comparisons for logistics companies including KLN Group. After the particularly difficult 2023 Q1, the Group’s overall performance has bottomed out. Although the Group’s core net profit reported a decrease of 85% in year-on-year terms, the performance in 2023 Q2 recorded more than 30% quarter-on-quarter growth. The Group’s resilience, agility and unique position in Asia are expected to carry it through the storm in 2023.”

    Across the business, Kerry Logistics’ integrated logistics remained stable in H1 with a segment profit of HK$718 million compared to the HK$717 million seen in the same period last year. Contributing to the positive performance were its business in China and Thailand-based Kerry Siam Seaport’s satisfactory results with Hong Kong not growing proportionally due to a sharp drop in demand for pandemic-related services.

    The freight forwarding business meanwhile recorded an 82 percent year-on-year contraction in segment profit in the first half at HK$621 million. The company attributed the decline to weak global demand, slower-than-expected recovery in Asian exports and plunged freight rates. Kerry Logistics said the trans-pacific trade lane accounted for more than 80 percent of the business, despite volumes sliding 22 percent year on year. The company said this decline is comparatively smaller and it expects the division to outperform the market when it turns around.

    Recording the only segment loss for the first half is the company’s e-commerce and express business. The company said it expects Kerry Express Thailand, the major contributor for the express division, to stabilise in the fourth quarter of next year. On 25 July 2023, the group announced the transfer of certain companies engaging in express delivery services in Asia Pacific and Europe to an indirect subsidiary of S.F. Holding as a move to reorient its focus towards integrated logistics and freight forwarding.

    Vic Cheung concluded that 2023 is shaping up to be a tough year for the global logistics industry: “the extreme circumstances under the pandemic are gradually fading in global logistics activities and there are signs of improvement in both freight rates and volumes in KLN Group’s key markets.

    “Using the pre-pandemic FY 2019 as the base, we are confident to deliver healthy and sustainable Compound Annual Growth Rate (CAGR) growth in segment profits in our IL and IFF divisions. We are also optimistic that the stable performance of the IL business is likely to keep up the momentum in 2023 2H.”

    Kerry Logistics announced interim dividend of 9 HK cents per share  payable on  22 September 2023.

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  • DB Schenker unveils plans for RedLion2

    DB Schenker unveils plans for RedLion2

    German logistics firm DB Schenker on Monday announced plans to invest more than €100 million for a new zero-emissions logistics facility in Tampines, which is scheduled to be completed by the first half of 2025.

    Dubbed RedLion2, the 600,000-sqft facility will be the company’s largest investment in Singapore, surpassing the previous investment record for Red Lion, a S$163 million (€101 million ) warehouse opened in 2020 at the free trade zone of the Airport Logistics Park of Singapore.

    DB Schenker said the future facility aims to support the semiconductor and healthcare industries and will be designed to house advanced automation solutions, including intelligent conveyor systems, automated storage and retrieval systems, and autonomous guided vehicles.

    RedLion2 will also be equipped with several sustainable features, including over 4,000 solar panels, to ensure that the facility is carbon-negative. With the addition of RedLion2, DB Schenker’s facilities in Singapore will occupy over four million square feet of land across 17 facilities.

    The company said it plans to partner with local small and medium-sized enterprises to test new ideas within the logistics industry through an innovation sandbox. It currently has around 1,900 employees based in the city-state, with plans to add 600 staff in the next 7 years.

    Catherine Soo, cluster chief executive for Singapore and Malaysia, told local news why SIngapore was chosen for this expansion project: “We see a lot of companies relocating or expanding to Singapore, and we can complement them by providing a logistics surface for everyone to grow together. This drives us to put Singapore at a higher level of importance than other countries.”

    “Other countries in Asia-Pacific where we have operations are fighting for the same investment from us, but DB Schenker Singapore has been able to deliver a very strong track record,” she noted.

  • High logistics costs hurt Vietnam’s economic competitiveness

    High logistics costs hurt Vietnam’s economic competitiveness

    Inadequate transport infrastructure and connectivity, and domestic enterprises’ low capacity and slow technology adoption and digital transformation are hindering the otherwise rapidly growing logistics industry, experts have said.

    The industry has grown rapidly along with the economy, trade, manufacturing, and e-commerce.

    The logistics industry is growing at an average of 14-16% a year and worth US$40-42 billion a year, said Tran Thanh Hai, Deputy Director of the Ministry of Industry and Trade’s Agency of Foreign Trade.

    Transport infrastructure has received large investments in recent years, with new seaports and airports being built. But the development has not been in lockstep and so failed to meet the growing demands of the logistics industry, Hai told a roundtable in Ho Chi Minh City on August 10.

    Many businesses are involved in logistics, but most are small or medium-sized with limited capital, information technology application, digital transformation, and human resources. This has led to high costs, he said.

    Dang Vu Thanh, Vice Chairman of the Vietnam Logistics Business Association, said the industry has yet to tap its potential fully.

    He pointed out that the poor transport infrastructure and connectivity between seaports, airports, warehouses, and industrial parks are hampering the development of the industry.

    He said that logistics costs are equivalent to around 18% of GDP, much higher than in other countries.

    He added that the high logistic costs reduce the competitiveness of the country’s exports and economy, and lowering them is a pressing concern.

    Mike Bhaskaran, group chief operating officer for digital technology at DP World, said to help businesses improve their trade capacity and support the development of logistics businesses, Vietnam needs to increase its visibility and transparency through promoting the development of the Internet of Things and GPS tracking system and improve its ability to predict market trends.

    On the business side, it must transform management technology to enhance automation, reduce delivery times and improve internal supply to reduce logistics costs, he added.

    The roundtable was held on the sidelines of the inaugural Vietnam International Logistics Exhibition that opened at the Saigon Exhibition and Convention Center on August 10.

  • SingPost’s Li Yu on e-commerce, logistics and more

    SingPost’s Li Yu on e-commerce, logistics and more

    Singapore Post announced dividends in May as the group posted a record revenue of S$1.9 billion for the financial year 2022/2023, with the international business contributing around 90 percent of the total. In an unpredictable market environment, SingPost’s logistics unit contributed 90 percent of the total operating profit, serving as a buffer for the decline in the postal segment. The postal group is on the verge of transforming into a global e-commerce logistics enterprise with its recent expansion in Australia, newly formed partnerships and the development of international cross-border e-commerce logistics. In this interview, Payload Asia catches up with Li Yu, CEO international at SingPost, to discuss the company’s performance this year as well as the Group’s strategy to capitalise on growing demand for e-commerce logistics.

    What can you say about the company’s full-year performance?

    The Group achieved a record revenue of S$1.9 billion for the financial year 2022/2023. Seventy percent was contributed by logistics versus just 38 percent back in FY2020. More importantly, logistics contributed 90 percent of the total operating profit. Our growth in the logistics segment has mitigated the structural decline of the postal segment, a trend that is prevalent globally.

    The other key highlight is 86 percent of our revenue was generated internationally. With our expansion into Australia and the development of our international cross-border e-commerce logistics business, SingPost is transforming into a global e-commerce logistics enterprise and is well positioned in high growth markets across the Asia Pacific region.

    Can you give us a rundown of your division’s top priorities? Where does e-commerce sit in your priorities and growth strategy?

    According to McKinsey’s projections between 2023 and 2026, the Southeast Asian eCommerce market is expected to triple, boasting a compound growth rate of 22 percent. It is estimated that the market will reach approximately US$230 billion in gross merchandise volume. In a separate report from June 2022, Statista’s forecasts underlined significant growth in the ecommerce market across Asia, Australia, and the Americas.

    At SingPost, we will continue to build on our strengths and establish ourselves as a leading eCommerce supply chain and logistics provider within the 4PL space across Asia Pacific region. Internationally, we have expanded into offering our global customers inbound Australia services, expanding the China/Hong Kong to Singapore lane with efficiencies and offering Europe to Asia services with direct line-haul, and establishing a dual hub system using Hong Kong alongside Singapore to facilitate seamless e-commerce delivery.

    Strategically, we are focusing on three growth drivers. First is enhancing our digital capabilities and leveraging the 4PL model as a supply chain orchestrator, to support the continuous eCommerce growth across Asia Pacific. Second is expanding our hubs in Singapore, Hong Kong and Europe to shorten delivery times and better serve e-commerce flows and delivery into, out of and within Asia. One of the recent partnerships is with SATS to address a growing demand for e-commerce transshipment by leveraging our combined expertise. Third is expanding our infrastructure in domestic markets through pick-up, drop-off (PUDO) network growth to provide convenience and efficiency to our merchants and users, handling the increasing volume of eCommerce parcels

    International business contributed an enormous 86 percent of the Group’s overall revenue? Can you share more about your business in Australia? What makes this market special?

    Australia is the major contributor to our transformation and growth of the logistics business. Over the last 3 years we have seen the business grow three times in size. The logistics business we have built down under caters to both the B2B and B2C segments. The move to go big in logistics is already underway. In December 2020, SingPost took a 28 percent stake in Australia’s Freight Management Holdings (FMH) for A$58.9 million. The stake was eventually raised to 51 percent just over a year later and to a further 88 percent this March. The acquisition of FMH places 4PL (fourth-party logistics) technology at our core. We intend to expand with this asset-light approach in mind, powered by the 4PL digital platform. FMH has performed outstandingly since our initial investment and is a key growth driver in the group’s logistics business.

    Besides FMH, SingPost also owns CouriersPlease, a first and last-mile delivery courier network covering 90 percent of Australia’s population. FMH’s digitally enhanced logistics capabilities, together with our CouriersPlease last-mile delivery network allows us to provide technology-driven, fully integrated logistics solutions for both business-to-business and business-to-consumer operations in the Australian market.

    Does it make sense for big e-commerce players to enter logistics or at the very least insource it? What’s your take on this move?

    There are always two sides of a coin. By undertaking their own logistics, big e-commerce players may gain more control over their supply chain and enjoy more seamless operations. However, substantial initial investment costs are required to set up the logistics systems and infrastructure. Expertise in logistics management, time and resources will need to be devoted to manpower training and technology to provide high-quality logistics services. Fluctuations in e-commerce volumes would also call for the ability to scale their operations efficiently. The decision to establish in-sourcing of its logistics should be based on a thorough analysis and alignment to the company’s long-term growth and strategic objectives.

    In many cases, it is more practical and cost-effective to establish partnerships with reliable logistics providers, increasingly to a 4PL player. Merchants gain immediate access to advanced technologies, established networks, and scalable operations. This allows them to focus on core business functions while the 4PL handles day-to-day logistics tasks, reducing operational burdens.

    The 4PL’s global reach also facilitates international expansion and efficient cross-border shipments, enhancing overall supply chain efficiency, improves customer service, and contributes to the merchant’s business growth in a cost-effective manner.

    With your recent MoU with SATS, what kind of services or enhancements are you looking to unveil in Singapore based on your recent trials in February?

    The partnership with SATS is designed to harness our unique strengths in order to meet the changing demands of e-commerce companies. With a cutting-edge transshipment hub facility, we aim to decrease delivery times and lower operating expenses and labour requirements. By eliminating the need for transportation between SATS and SingPost facilities, we will streamline cargo logistics workflows, reduce reliance on conventional cargo vehicles, and optimise warehouse space usage.

    Based on a 3-month joint operations trial with SATS, we achieved a remarkable 60% reduction in the time taken from arrival to departure. The new approach cut the initial processing time of 21.8 hours to just 8.5 hours. With our extensive air connectivity and flights in Singapore, logistics players who partner us can expect an expedited delivery of products to Asia within a total timeframe of 15.5 hours. The Global eCommerce Hub is poised to disrupt the eCommerce logistics industry by enabling end-to-end delivery within 1-3 days in Asia.

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  • DHL to acquire Turkish courier MNG Kargo

    DHL to acquire Turkish courier MNG Kargo

    DHL Group has agreed to fully acquire Turkish parcel delivery company MNG Kargo Yurtiçi ve Yurtdışı Taşımacılık A.Ş. (MNG Kargo), one of the leading parcel delivery companies in Turkey.

    The merger will look to capitalise on Turkiye’s growing e-commerce market, which is estimated to see double-digit growth in the next few years. Tobias Meyer, CEO DHL Group said “E-commerce remains one of the biggest growth drivers for logistics services and especially for parcel volumes. We, therefore, continuously work to expand our footprint in the e-commerce sector – whether through organic or inorganic growth. MNG Kargo complements our business portfolio and will help further to strengthen our position in this sector.”

    The acquisition will boost DHL’s domestic presence in Turkiye and DHL considers the newly acquired parcel network a perfect addition to its European parcel delivery network, with 27 mid-mile sorting centers and over 800 last-mile branches in main cities of Turkey.

    The transaction is subject to merger control clearance by the Turkish Competition Authority as well as approval of the Turkish Information and Communications Technologies Authority.

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  • Cainiao launches new hub in Indonesia

    Cainiao launches new hub in Indonesia

    Cainiao Group, the logistics arm of Alibaba, has officially launched its first warehouse in Indonesia as part of a regional hub expansion plan.

    Situated in GIIC Deltamas Cikarang, Bekasi Regency, east of Jakarta, the new Cainiao Cikarang Logistics Park is the third warehouse to be added to the company’s planned warehouse network of ‘chubs’ in Southeast Asia.

    The project has a total land area of 320,000 square metres and encompasses six warehouses covering 170,000 square metres. Cainiao said these ‘cHubs’ are strategically located near key transportation nodes and manufacturing hubs like Indonesia to boost connectivity to global markets.

    The Alibaba logistics unit is confident about the country’s strong potential and demand for warehousing capabilities as industry experts forecast rapid eCommerce growth and increasing customer expectations for fast and affordable deliveries.

    “The vision is for Cainiao Cikarang Logistics Park to pave the way for future full chain capabilities to support manufacturers for their logistics and trading needs, such as fulfillment and sorting for local deliveries, import and export for B2B and B2C businesses, smart supply chain management, and logistics technology such as IoT, automation and warehouse management systems,” Cainiao noted.

    Factoring in sustainability and local climate characteristics, the logistics park project also features skylights, incorporated into warehouse rooftops, as well as a natural ventilation system that will ensure a comfortable environment with energy savings in mind.

    Cainiao shared the project received strong interest from local businesses prior to the official launch and achieved a 75 percent occupancy rate. Tenants include PT Senopati Fujitrans Logistic Services (Senfu), PT SGMW Indonesia (Wuling Indonesia), CJ Logistics, Klog, Haier and Lazada. Work is underway to expand the overseas warehouse network in Thailand and Vietnam.

    “We have witnessed immense potential in Southeast Asian region and have been actively investing to expand our warehouse network in order to cater to the needs of local businesses. We are thrilled to finally announce this new warehouse, our first infrastructural investment in Indonesia and third in the region. Our strong network and expertise in logistics and supply chain capabilities will help our partners and customers in Indonesia accomplish more in less time and boost local and regional trade activities by streamlining workflows and processes across the value chain,” said Eric Xu, Vice President, Cainiao Group.

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  • JD Logistics joins forces with Geopost

    JD Logistics joins forces with Geopost

    JD Logistics and French delivery service Geopost have formed a strategic partnership aimed at strengthening their capabilities by leveraging their warehousing network and delivery capabilities.

    The partnership is expected to enhance international express services between China and Europe, which will see the two companies establish direct-to-consumer (C2C) and business-to-consumer (B2C) shipping solutions, whilst ensuring end-to-end shipment tracking and delivery through a convenient “one-stop” express delivery service.

    Services will include doorstep delivery, dedicated customer support, and digital tracking capabilities throughout the entire logistics process, with global reverse logistics services integrated into the service.

    These services are expected to benefit shippers of individual parcels as well as businesses, small and medium-sized merchants, and direct-to-consumer (DTC) operations, which can offer competitive pricing and faster deliveries by 1-2 days.

    This collaboration allows JD Logistics to enhance its integrated warehousing and delivery services in Europe. This means parcels originating from JDL’s overseas warehouses in Europe can now offer same-day delivery service, surpassing industry standards, in key countries including Germany, The Netherlands, France, the UK, Spain, and Poland.

    The two organisations also plan to develop competitive FBA (fulfillment by Amazon) service capabilities in the European to help merchants increase efficiency and lower costs.

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  • DHL Supply Chain to spend €500m in Latin America

    DHL Supply Chain to spend €500m in Latin America

    DHL Supply Chain has announced a landmark investment of €500 million into Latin America over the next years (until 2028) as part of a strategy to strengthen its capabilities in high-demand sectors like healthcare, automotive, technology, retail and e-commerce.

    Projects in the pipeline include decarbonizing the domestic fleet through greener alternatives; building, developing and retrofitting real estate assets and warehouses in the market; as well as significant investments into new technologies, robotics and automation solutions.

    DHL Supply Chain is confident in its plans for the region, citing its proximity to large consumer markets in North America as well as booming sales markets which make it attractive for industries to invest and therewith request additional logistics support.

    The company has been growing its operations in Latin America with more than 240 locations. In Mexico last year, it acquired NTA, a company focused on logistics services for the pharmaceutical industry.

    In Brazil, it recently announced the expansion and modernization of its distribution centre located in Goiás, while expanding its operations and presence in Extrema Minas Gerais for various clients in pharmaceuticals and retail fashion. It also opened a new distribution centre in Pudahuel, Chile, and expanded its presence in Mexico with new warehouses in Tijuana and Monterrey, including a new campus in the State of Mexico, which will serve the e-commerce, retail, fashion, consumer, medical devices, aerospace, electronics, and automotive sectors.

    Following the announcement of the investment, DHL Supply Chain Mexico inaugurated a new center of excellence for electric vehicles to provide synergy to the automotive industry in the region.

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  • DHL Express expands electric van fleet in Indonesia

    DHL Express expands electric van fleet in Indonesia

    Leading international express service provider DHL Express has geared up to electrify its last-mile delivery fleet with the deployment of 24 electric vans in Jakarta and Bandung.

    The introduction of the new e-vans, which are expected to cut 177 tonnes of annual carbon emissions, underscores the company’s commitment to more sustainable operations and contributing to climate protection.

    The new electric vehicles will join the existing fleet which includes four electric vans and six electric bikes serving areas in Jakarta and Surabaya.

    Ahmad Mohamad, Senior Technical Advisor, DHL Express Indonesia, said the plan is to transition the company fleet to electric vehicles and make them available in other Indonesian cities. The company will also invest in other low-carbon solutions, such as e-trucks and solar panels for facilities in Indonesia.

    As announced in its Sustainability Roadmap, Deutsche Post DHL Group will invest 7 billion euros until 2030 in CO2 reduction measures. This includes electrifying 60 percent of the last-mile delivery fleet across the Group.

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  • FedEx expands its capabilities in Guangzhou

    FedEx expands its capabilities in Guangzhou

    FedEx Express recently signed a memorandum of understanding (MOU) with the Guangzhou Municipal Government to form an in-depth strategic collaboration.

    Under the MOU, FedEx and the Guangzhou Municipal Government will fully cooperate on customs clearance, cross-border e-commerce, and the establishment of the South China Operations Center.

    The two sides will jointly promote FedEx strategy and business development in Guangzhou, expand e-commerce logistic services, and support Guangzhou’s development as an international cargo hub.

    The FedEx APAC Hub is located at the Guangzhou Baiyun International Airport. Since its initiation in 2009 as a major hub in APAC, the facility currently operates more than 210 international flights weekly.

    In 2022, FedEx launched an AI-powered sorting robot at the company’s South China E-Commerce Shipment Sorting Center in Guangzhou to handle the ever-growing volumes of e-commerce-related shipments in the region. This was followed by the announcement that it would expand its Guangzhou Gateway by establishing a new South China Operations Center at Guangzhou Baiyun International Airport.

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  • Bolloré Logistics appoints new Asia Pacific chief

    Bolloré Logistics appoints new Asia Pacific chief

    Bolloré Logistics has named Olivier Boccara as its next chief executive officer for Asia Pacific, taking over the duties of Cyril Dumon.

    Prior to taking on the new role, Boccara, who joined the Bolloré Group in 1994, was the company’s chief commercial officer. He held various positions at SAGA and became its CEO in 2007.He was promoted to managing director of Bolloré Logistics France in 2016.

    He was notably involved in a number of major structuring projects, including the merger of the SAGA and SDV subsidiaries in 2015 and the acquisition in 2021 of a majority stake in Ovrsea, a startup specialising in digital freight forwarding.

    Olivier will be based in Singapore, where he will pursue the development strategy implemented by Dumon. He also aims to launch new projects in several key sectors, including aeronautics, healthcare, luxury goods and cosmetics.

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  • Sanctions hit Vietnamese exports to Russia

    Sanctions hit Vietnamese exports to Russia

    Vietnam’s exports to Russia fell by nearly 60% year-on-year to US$205 million in the first two months of this year.

    Iron and steel, footwear and electronics exports almost came to a halt while those of agriculture produce like rice, vegetables and seafood fell by 20-50%, according to the Vietnam Trade Office in Russia.

    Rubber, garment and coffee were the only items whose exports increased.

    The ongoing Russia-Ukraine war is said to be the main cause as sanctions on Russia limit its trade with other countries, including Vietnam.

    Major shipping firms and airlines have stopped their Russia operations, and so Vietnamese business have trouble sending goods to the country.

    Bilateral trade fell by nearly 62% to $402 million.

    The trade office said Russian businesses are increasingly interested in establishing trade partnership with their Vietnamese counterparts, and the number of Russian companies participating in Vietnam’s fairs and exhibitions is rising.

    Many Russian retailers want to sell agricultural products, clothes and footwear from Vietnam, it added.

  • FedEx to cut global management jobs by over 10% as e-commerce demand wanes

    FedEx to cut global management jobs by over 10% as e-commerce demand wanes

    FedEx is cutting global officer and director jobs by more than 10 per cent, the courier’s latest cost-saving step as economic concerns and waning e-commerce weigh on demand for package delivery.

    The company plans to consolidate some teams and functions in addition to the headcount reduction, part of an effort to become a “more efficient, agile organisation”, chief executive Raj Subramaniam said on Wednesday in a memo to employees. The changes will align the size of the network with customer demand, he said.

    “This process is critical to ensure we remain competitive in a rapidly changing environment, and it requires some difficult decisions,” Mr Subramaniam said in the memo.

    The slump in parcels is industrywide, with rival United Parcel Service reporting on Jan 31 lower volumes in the United States and a forecast for declining sales in 2023.

    Couriers are facing a market in which consumers have returned to shopping in stores, inflation is eating away at purchasing power and companies are sending fewer goods by airfreight now that maritime shipping rates have plummeted and supply chain delays have been corrected.

    The latest cuts bring FedEx’s total employee reductions to 12,000 since June, a spokesman said. As at May, the company had 345,000 full-time workers, according to a regulatory filing.

    FedEx said the job losses include “executive management”, but did not give additional details on which units would be most affected. During an analyst call in December, the company said the Express unit requires more work to improve margins.

    “At Express, the team is transforming the network to be more agile, efficient and digitally led,” Mr Subramaniam said on the call. FedEx is also making changes at its Ground unit to weed out underperforming delivery contractors.

    FedEex shares rose 4.3 per cent on Wednesday in New York, bringing the gain in 2023 to 17 per cent.

    Since taking over as CEO from founder Fred Smith in June, Mr Subramamian has unveiled US$3.7 billion (S$4.8 billion) in cost cuts for this fiscal year in response to a rapid decline in parcel demand. The steps include worker furloughs, cutting cargo flights and parking some planes.

  • Vietnam posts trade surplus of $3.6B in January

    Vietnam posts trade surplus of $3.6B in January

    Despite decreases in both imports and exports, the country still enjoyed a trade surplus of $3.6 billion in the first month of 2023, according to the General Statistics Office (GSO).

    The office reported that in the month, total import-export turnover reached $46.56 billion, with exports dropping 21.3% to $25.08 billion, and imports falling 28.9% to $21.48 billion.

    While the domestic sector saw a trade deficit of $1.04 billion, the foreign-invested sector (including crude oil) posted a surplus of $4.64 billion.

    Experts attributed the result to the long New Year and Lunar New Year (Tet) holidays, which were all in January, reducing the number of working days. Last year, the Tet holiday fell in February.

    The GSO reported that the manufacturing-processing sector earned the highest export revenue with 22.32 billion USD, accounting for 89% of the country’s total.

    Meanwhile, there were three goods groups with imports of over $1 billion.

    In January, the U.S. remained the biggest importer of Vietnamese goods with a revenue of about $7.6 billion, while China was the biggest exporter to Vietnam with $8.1 billion.

    The GSO held that many countries are facing the threat of inflation and economic recession, leading to reduction in global consumption, thus affecting Vietnam’s import-export activities.

    Export activities showed signs of slowing down from the fourth quarter of 2022 with fewer orders, it said, adding that 2023 is likely to be a tough year for Vietnam’s import-export.

    In 2023, the MoIT sets a target of a 6% rise in goods export revenue, with trade surplus maintained.

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  • Thien Long Group further invests in production and distribution

    Thien Long Group further invests in production and distribution

    Thien Long Group has inaugurated its Clever Box store chain, put into operation a new plant and distribution center in the final quarter of 2022.

    According to a representative of Thien Long, the group had set a plan years ago to upgrade shopping experiences by building a store chain that brings customers many personal experiences like in well-known stationary store chains in Asia as well as the world.

    The target was partly reached as Thien Long Group opened Clever Box stores in October and November this year. The store chain offers stationeries and creates a world of creative toys, and souvenirs through DIY and STEAM items.

    Aside from a wide range of products and creative toys with high educational values, Clever Box provides unique experiences to customers.

    The stores have cozy spaces featuring eye-catching designs and arrangements that inspire customers of all ages to discover “a creative world.”

    Clever Box also has a high-tech platform offering a quick transaction experience to customers. In the coming time, the group will expand the store chain’s online channel cleverbox.vn, e-commerce platforms, and offline channels.

    The Clever Box store chain has further improved the distribution system of Thien Long. The group currently manages 55,000 selling points and channels from GT to MT and B2B and e-commerce channels.

    In the final quarter of 2022, Thien Long Group also put into operation Thien Long Long Thanh Factory in the southern Dong Nai Province and a distribution center in Le Minh Xuan Industrial Zone in HCMC’s Binh Chanh District.

    The new factory covering nearly 10,000 square meters has a capacity of 739 million products per year. The project required a total investment of VND230 billion. The Thien Long Long Thanh Factory plays a role of helping the group diversify products and increase sales.

    Once the new factory is completed, the Thien Long Long Thanh factory complex will have a total area of 28,450 square meters. The new plant and the current Nam Thien Long factory covering 15,750 square meters in Tan Tao Industrial Park in HCMC will help raise the group’s production capacity to meet the market demand and contribute to the growth of Thien Long.

    In mid-October, Thien Long Group opened the distribution center in Le Minh Xuan 3 Industrial Zone in HCMC’s Binh Chanh District. Work began on the project in December 2021. The five-story facility covering 14,000 square meters can handle 14,000 tons of goods and 1,000 orders from e-commerce channels each shift.

    Recently, Thien Long Group was also named one of the Top 100 Sustainable Businesses by Vietnam Chamber of Commerce and Industry (VCCI) and Vietnam’s 50 Best-Performing Companies by Nhip Cau Dau Tu Magazine.

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