FedEx Corp, the world’s largest transportation company, is anticipated to support Vietnam in developing airports and logistics network.
| Prime Minister Pham Minh Chinh and Richard W. Smith, President and CEO of FedEx Express, in Hanoi on June 6. Photo: VGP |
Vietnamese Prime Minister Pham Minh Chinh told Richard W. Smith, President and CEO of FedEx Express, at the meeting on June 6, that the number of aircraft in the Southeast Asian country is growing, as is the volume of cargo being transported.
He recommended that FedEx deepen its connections with Vietnamese partners and support them in managing and operating transport and logistics services and taking part in express delivery services in the global supply chain.
PM Chinh said that the development of Long Thanh International Airport in Dong Nai Province and its eventual transformation into a major regional and global transit hub are the current priorities of the Vietnamese government. The Prime Minister suggested that FedEx Express expand its operations and investment at the airport in addition to helping Vietnam build it.
Richard W. Smith provided an overview of the corporation’s operations, which are available in more than 220 countries and territories, with revenues in 2023 reaching US$90.2 billion.
FedEx Express has been the primary express delivery company in Vietnam for over 30 years. With 36 weekly flights, Vietnam has emerged as FedEx Express’s primary market in the Asia-Pacific, Middle East, and Africa region.
Smith was optimistic about Vietnam’s capacity for economic growth in the near future and expressed his appreciation for the country’s investment opportunities and business-friendly atmosphere, particularly the attention of the government and the prime minister.
He said FedEx Express expected to expand both its operations and investment base in Vietnam and wish to continue its logistics activities at Tan Son Nhat International Airport in Ho Chi Minh City in the near future.
A the meeting, the Vietnamese prime minister also thanked FedEx Express and Richard W. Smith for their contributions to Vietnam’s economic development, the fight against the Covid-19 pandemic, and the growing relations between Vietnam and the US.
He said that Vietnam views the US as its strategic partner, especially in trade. The US is currently Vietnam’s largest export market, and Vietnam is the 7th largest trading partner in the US.
For two years in a row, the two-way trade has exceeded $100 billion. The US has long been one of Vietnam’s most important trading partners and among the top 10 investment destinations for Vietnamese businesses.
Particularly, the upgrade of the relationship to a Comprehensive Strategic Partnership in September 2023 has given both parties more space and motivation in a variety of areas. Since the upgrading of the relations, Vietnam has welcomed a number of major US companies to learn more about and increase their investment in the country, including Google, Apple, Nvidia, Boeing, and Amazon.
Briefing the guest on the situation in Vietnam, PM Chinh said that Vietnam’s consistent policy is to maintain social, political, and economic stability while developing an independent and self-reliant economy and fostering proactive and broad international integration.
Its main objective is to rapidly and sustainably develop the country by applying science, technology, innovation, digital transformation, and green transformation while leveraging human resources and Vietnamese culture.
In the spirit of harmonizing interests and sharing risks, Vietnam is working to enhance its institutional and policy framework in order to create a more stable, fair, conducive, and transparent investment environment.
Along with developing logistics and infrastructure, it uses “open mechanisms, smooth infrastructure, and smart governance” to cut costs. The government is committed to creating a business-friendly environment that will encourage US companies, like FedEx, to invest and run long-term business in Vietnam.
According to the prime minister, as Vietnam is an open economy with free trade agreements with 60 other economies worldwide and is actively expanding into new markets, there will be a significant volume of goods in circulation.
He believed that FedEx Express’s transportation and express delivery services in Vietnam and around the world will keep expanding in light of the rise of cross-border e-commerce. He welcomed the company’s business expansion in Vietnam, which will help to strengthen US-Vietnam relations in the future.
Regarding the group’s activities at Tan Son Nhat International Airport, PM Chinh assigned the Ministry of Transport the role of supervisor to work in tandem with relevant agencies to guarantee the company’s smooth operations.
