DHL Express expects supply chain shifts to boost its SE Asia business, reposes faith in Hong Kong’s role as Asian logistics hub
- DHL sees business growth from supply chain shifts to Southeast and South Asia, regions close to China with friendly foreign investment policies, says DHL APAC CEO
- Hong Kong to efficiently serve as a centre of DHL’s Asian logistics network given the city’s connectivity and infrastructure, says CEO Ken Lee
DHL Express expects its business in the Asia-Pacific market to outperform other regions this year, driven by volume recovery in Southeast Asia, which is benefiting from inflow of supply chain businesses moving out of China amid geopolitical tensions.
These trends, which began in 2018 after then-president Donald Trump launched a trade war against China, have gathered pace with even Chinese firms moving supply chains out of the country to manage business risks.
“Asia-Pacific is probably the most promising region because we see quite a recovery in the volumes moving forward,” Ken Lee, CEO at DHL Express Asia-Pacific, said in an interview with the Post.
While worldwide supply chains are fragmenting amid changing trade policies, coronavirus pandemic disruptions and rising geopolitical tensions, these businesses are moving towards Southeast and South Asian countries, which are not only close to China but also have friendly foreign investment policies, Lee said while naming Malaysia, India, Thailand, Vietnam and Indonesia as those witnessing this trend, Lee said.
“Our customers guide us to where we want to invest,” said Lee in whose view proximity to customers was an important strategy.
“Whenever businesses decide to expand their base beyond China to new locations, we come into play,” Lee added.
