US transport giant FedEx longs to expand in Vietnam

FedEx Express is planning to expand in Vietnam and build on its logistics activities at Tan Son Nhat International Airport in the southern metropolis of Ho Chi Minh City, said its president and CEO Richard Smith.

During his talks with Vietnamese Prime Minister Pham Minh Chinh in Hanoi on Thursday, the chief of the world’s largest express transportation firm spoke highly of Vietnam’s business environment.

After over 30 years in the country, FedEx sees Vietnam as a major market in the Asia-Pacific, Middle East, and Africa, with 36 weekly flights to/from Vietnam, Smith noted.

PM Chinh, for his part, suggested FedEx ramp up flights and cargo transport in Vietnam while calling for its support in airport and logistics network development.

The government chief also asked the U.S. company to share its expertise with Vietnamese partners in operating and developing transport and logistics services, as well as providing fast delivery services within the global supply chain.

Chinh requested aid from the transport giant to develop the mega airport project of Long Thanh in HCMC’s adjacent province of Dong Nai. He also urged the firm to expand its activities and investment at this airport, while vowing facilitation for U.S. corporations, including FedEx Express, to do business in Vietnam.

The U.S. is currently Vietnam’s largest export market, with bilateral trade exceeding $100 billion for two years in a row. In September 2023, the countries upgraded their relations to a comprehensive strategic partnership.

FedEx Express provides time-sensitive, air-ground express service to 220 countries and territories. Last year, its revenue reached $90.2 billion.

Long Thanh airport, about 40 kilometers east of HCMC, has a total investment of over $16 billion, divided into three phases. Once completed, the airport will be the biggest of its kind in Vietnam and a major transit hub for the region and the world, helping alleviate the overload at Tan Son Nhat Airport.

Cargo transport in Vietnam reached nearly 1.03 million tons in the first five months of 2024, up 11.4% year-on-year, according to the General Statistics Office. Air freight accounted for the smallest slice of 0.2 million tons, up 47.5% year-on-year.