Luxembourg-based all-cargo airline Cargolux has added a fifth weekly flight to Vietnam as it forecasts an increase in export products transported by air, particularly electronic and electrical items, from the Southeast Asian nation.
The new cargo service introduces a second weekly flight to Ho Chi Minh City and a fourth frequency to Hanoi. The added flight was scheduled to start on December 2 and operates every Tuesday, leaving Luxembourg at 5:05 a.m. and arriving in Ho Chi Minh City at 7:20 p.m. and Hanoi at 10:55 p.m. The return flight arrives back in Luxembourg at 2:05 p.m. on Wednesday.
Cargolux is banking on big electronics and appliance manufacturers in Vietnam to jack up their air shipments as they disclose further plans to expand production.
Samsung, the biggest investor in Northern Vietnam, is building up its production of LCD monitors during the first quarter of 2015 in Ho Chi Minh City. Samsung already operates factories in Bac Ninh province since 2009 and at Thai Nguyen since 2013. Microsoft has, after it acquired Nokia, transferred production lines from a number of countries to Vietnam and will operate 39 production lines of smart phones in that country by 2015 with an estimated export volume of up to 50,000 tonnes annually. LG Electronics is investing US$1.5 billion in a new production facility for smart phones in Hai Phong City. The company already manufactures appliances such as televisions, refrigerators, and air-conditioning units in Vietnam.
About 48% of all exports from Hanoi are destined for Europe and the U.S., while 33% go to Asian destinations, said the company. Ho Chi Minh City exports 50.5% to Europe and the U.S. The Vietnam Transport Ministry expects air cargo shipments to grow by as much as 23% in 2014, while industry experts say the country’s exports will be about 80% of its gross domestic product this year after total exports rose 13.4% from a year earlier to $123 billion in the 10 months through October 2014.
Vietnam’s GDP between January and October 2014 grew 5.54% against the same period in 2013. Export turnover increased 13.4%, while import turnover rose by 11.2%.
Photo: Odessey
