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Is Our Business SPECIAL APEC EDITION 2017 TRADE IS OUR BUSINESS Ho Chi Minh City, Vietnam SPECIAL APEC EDITION 2017 SPECIAL APEC EDITION 2017 BRIGHT FUTURE FOR VIETNAM David Cunningham, president and CEO, dynamic, well-educated and e-commerce boom firsthand. FedEx recognized FedEx Express, discusses how APEC’s hard-working people are its biggest Just within the last four years, Vietnam’s commitments to economic reform, advantage and also one of the main e-commerce has doubled amazing potential open markets and regional integration reasons the country is moving rapidly in Vietnam and is now a nearly when we are helping fuel growth in Vietnam and up the value chain. $2 billion market. sponsored the APEC member economies. Vietnam is a prime example of Another trend is the move to APEC CEO the benefits of APEC’s vision of reduce administrative costs, or Summit in 2006. In 2006, Vietnam hosted its first economic reform, open markets “red tape,” associated with trade. DAVID CUNNINGHAM We have been APEC CEO Summit. The theme: and regional integration. We’ve even Administrative rules written for proudly serving Vietnam since 1994, “Towards a Dynamic Community seen the results at FedEx. Last year, 40-foot containers can become a real and we are excited to return to for Sustainable Development and for instance, over 87 percent of barrier to trade when applied to a Vietnam as a Platinum sponsor of the Prosperity.” Vietnam quickly put FedEx shipments from Vietnam single package crossing a border. 2017 APEC CEO Summit. FedEx these words into action. were exported to APEC member Small businesses don’t have the believes strongly in this year’s APEC In the 10 years following that economies, and 90 percent of our resources to navigate complex theme, “Creating New Dynamism, summit, Vietnam’s exports have shipments to Vietnam were imported border rules. We need to find new Fostering a Shared Future,” as we grown an astounding 500 percent, from APEC economies. ways to simplify trade for these remain committed to contributing to and its per capita GDP increased 175 FedEx has been a strong small businesses — our customers. Vietnam’s bright future and to the percent. Last year the economy supporter of APEC for many years So we are glad that Vietnam has larger APEC vision of greater attracted nearly $16 billion in foreign primarily because of its dedicated highlighted e-commerce and small economic integration and prosperity direct investment, helping turn focus on the trends shaping the and medium-sized enterprises throughout the Asia Pacific region. Vietnam into the 24th-largest future of the global economy. (SMEs) during its APEC year. This Congratulations to the people export economy in the world. One such trend, e-commerce, has focus will no doubt help Vietnam and of Vietnam for hosting APEC this As good as the last decade was created enormous opportunities for other APEC economies compete in year. I hope you enjoy the stories for Vietnam, the future is even small businesses and has enabled the that rapidly expanding marketplace. and perspectives in the pages brighter. Vietnam has one of the rise of a new “micro-multinational” Perhaps more importantly, that follow. youngest populations in the world, that can sell goods to the world with e-commerce can help APEC achieve The Cau Rong, or Dragon Bridge, crosses the with more than half of its citizens only a website and a FedEx account. its goal of more inclusive trade and Learn more at trade.fedex.com and River Hàn at Da Nang, Vietnam. Designed in the under the age of 30. The country’s Vietnam has experienced the economic growth throughout the region. follow us on Twitter at @FedExPolicy. shape of a dragon, the bridge breathes fire and B water every Saturday and Sunday evening. 1 SPECIAL APEC EDITION 2017 SPECIAL APEC EDITION 2017 IN BRIEF New Facility Takes Flight in Shanghai By the Numbers: Asia Pacific E-Commerce Flying Lab Shanghai has set its cargo and Cargo Hub set to open in FedEx Express and Boeing are tech­­nologies that reduce material sights high: The city’s Pudong November 2017 more than triples teaming up to test advanced flight waste. International Airport, already the the capacity of our old facility deck systems and fuel-saving “FedEx is committed to devel op- world’s third-busiest airport by — allowing us to process up to technology starting in early 2018. ing and implementing innovative cargo traffic, is on track to rise 36,000 docu ments and parcels 80% 94% The three-month program will solutions that connect the world to the top of the list by the end per hour. With the economy convert a 777 FedEx aircraft into responsibly and resource fully,” says of the decade — and as the airport of Shanghai and China continuing a flying aeronautics laboratory. David Cunningham, president and becomes an increasingly import- to boom, it ensures we’re The goal of the 2018 eco- CEO, FedEx Express. “We’re proud ant player in logistics and trade, providing our global customers HONG KONG CHINA Demonstrator program will be to work with Boeing and use our Helping Businesses Move Freight Forward FedEx is growing with it. Our new the con nectivity they need to 80% of small and medium-sized 94% of SMEs are generating to test emerging technologies, 777 Freighter to play a key role in $100 million International Express help their businesses grow. enterprises (SMEs) are engaged revenue through m-commerce including a new, fuel-saving bringing future benefits to the in e-commerce This summer’s openings of FedEx solutions and supply chain visibility compact thrust reverser developed aviation industry.” Trade Networks offices in Vietnam to help businesses of all sizes move by Boeing; flight deck improvements FedEx has a companywide and Japan bring international forward,” says Richard W. Smith, that can boost efficient operations environmental objective to freight-forwarding services to president and CEO, FedEx Trade in and out of busy airports; and reduce aircraft emissions intensity customers in both countries, helping Networks. Both openings represent prototype airplane parts using 30 percent from a 2005 baseline them optimize their supply chains strategic investments in markets 77% 75% cutting-edge manufacturing by 2020. for faster speed to market with lower with growth potential. In Vietnam, costs. Services include expanded the freight-forwarding market is regional access to international direct expected to grow to $1.4 billion by distribution, customized multi-modal 2019, and in Japan, it’s expected to solutions, and trade and customs grow to more than $6 billion by 2019. SOUTH KOREA SINGAPORE expertise. “We believe in making The new offices — in Ho Chi Minh 77% of SMEs are generating revenue 75% of SMEs are generating through e-commerce revenue from e-commerce the complexities of global shipping City and Tokyo — bring the total simple, and we strive to provide of FedEx Trade Networks offices in Source: “Global Trade in the Digital Economy: Opportunities for Small Businesses,” a commissioned research unparalleled freight-forwarding 16 APEC member economies to 106. study conducted by Harris Interactive on behalf of FedEx, September 2016. 2 3 SPECIAL APEC EDITION 2017 Over half of the TOSY staff in AN ECONOMY BUILT ON TRADE Vietnam works in R&D, many as Thousands of products like robotic hardware and software engineers. toys and sophisticated medical The team’s tech savvy is fueling devices — often from small and what will be the company’s fifth toy, medium-sized enterprises (SMEs) — a sparring robot due out at the end have helped Vietnam steadily move of 2017. It’s also created a huge and up the trade-partner list for many growing B2C demand, which TOSY countries, including the U.S. Vietnam’s Motorbikes are the most popular is addressing by launching its first second-largest trading partner is the and convenient mode of transport ation e-commerce channel, also at the U.S., totaling over $50 billion in TOSY’s spinning toys include the TOOP in Hanoi, Vietnam. end of this year. two-way trade. Top Vietnamese tops with LED lights (above) and the “FedEx has played a great role exports include electron ics, apparel, AFO circular boomerang (below). in helping bring our products to a shoes, coffee and seafood. wider audience across the world,” Ten years ago, Vietnam joined the Pham says. It’s a global consumer World Trade Organization, and since base that has helped create demand then, exports have continued to grow Vietnam on the Move for the high-tech toys popular with rapidly. Global trade now represents adults and children alike. “Adults use over 80 percent of Vietnam’s GDP, Global trade has transformed Vietnam since FedEx started operations there in 1994. their kids as an excuse,” Pham and Vietnam’s growth per capita has laughs, “but adults like the toys too.” aver aged 6 percent per year over the Here’s a quick look at the impact, from logistics to little robots. last decade. HANOI’S TOSY ROBOTICS has only says Trang Pham, international the ceiling or hang on a wall. four products to its name — but public relations manager. Take the With more than 1 million AFO those four products have sold top-selling AFO, which the company units sold and patents in several millions, broken world records and calls a modern circular boomerang. countries, including the U.S., put the company on the high-tech “You see flying toys everywhere, the company has added TOOP map. The popularity of TOSY’s toys but what makes ours different is, (a mechanical spinning top that 500% 175% #24 — designed and manufactured in after you launch it into the air, it set a Guinness World Record robot that detects beats and shows Increase in Vietnam’s Increase in Vietnam’s Vietnam ranking Vietnam and sold in 55 countries — flies really far and high, and comes with a spin that lasted 24 hours, off 56 dance moves).
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