Automotive Logistics Changes and Opportunities in Southeast Asia


Southeast Asia, a region is changing <br> <br> according to International Monetary Fund statistics show that in 2014, * the ASEAN + 3 countries (China, Japan, South Korea) has become the second largest economic area in the world, its gross domestic product The value reached 18.3 billion U.S. dollars, followed by the EU with a GDP of 18.5 billion U.S. dollars. In the past few years, the region’s economy has continued to grow despite a slight decline in 2015. Although ASEAN recorded its lowest growth rate (4.5%) since 2009, despite this, this alliance is still a boost to world economic growth.

The relative slowdown of China’s economic development and the rebalancing of the economy from industry to service, from investment to consumption, also bring advantages to this region. For example, Vietnam has benefited from the transfer of production bases in the Chinese textile industry and higher value added industries such as the electronics and mobile phone industries.

The increase in the number of teams perfectly explains the dynamic changes in this area. In 2016, China will become the world's largest auto market with more than 26 million vehicles sold. As for Indonesia, it currently produces more than 360,000 vehicles each year. Since 2012, its automobile export value has exceeded the value of imports from the industry.

In order to break into these markets, the alliance between manufacturers is increasing. Therefore, since the beginning of 2000, PSA Group, which has been through joint venture DPCA and Dongfeng Group, formally signed an agreement with Dongfeng Group in March 2014. With its expertise in vehicle and component parts, the attractiveness of the Asian automotive industry has enabled Gefco to position itself as a major player in the logistics business. Since 2009, Gefco has been responsible for the logistics and transportation of two plants owned by Shenlong Automobile Co., Ltd. in Wuhan, Hubei Province, and has managed the packaging and distribution of spare parts.

<br> <br> modern infrastructure and logistics infrastructure investment to support the development of the ASEAN + 3 region, the region constitutes a key market for international manufacturers, its location needs to be able to integrate the logistics of rail , sea and air transport.

Therefore, the latest figures from the World Shipping Council show that out of the top 30 ports in the world, 20 ports belong to ASEAN, and the top five ports are Shanghai, Singapore, Shenzhen, Hong Kong and South Korea's Busan. The five ports handle more than 130 billion standard containers each year. The Straits of Malacca through Singapore provides access to the region, maintaining a quarter of the world's cargo transportation.

At the same time, China intends to implement the “ Belt and Road” strategy to re-invest and modernize the connection between Southeast Asia and the rest of Eurasia, and to use the maritime and air silk roads to help modernize Africa’s transportation. In the south, the Maritime Silk Road connects the ports between Singapore and Hong Kong and Europe, and connects Africa through the Suez Canal. In the north, the land transport line connects Europe and East Asia quickly through a trans-Siberian railway. Another example of an infrastructure-oriented policy: Vietnam’s logistics infrastructure is rapidly modernizing. This process supports the country’s 2015 growth, bringing its economic growth rate to 6.7%, which is quite close to India’s 7.3% and China. 6.8%. Vietnam has developed deep-water ports such as Ho Chi Minh City-Gaimei-Shiweigang, which can handle 330,693, lbs of container ships. Now it has strengthened its water infrastructure to handle 20% of Vietnam's cargo transit. In fact, the Twelfth Vietnamese Communist Party Congress ended on January 28, 2016 established the goal of increasing the contribution of the maritime economy to the GNP to 55%. Vietnam also invested in a larger road network, including more than 1,700 kilometers of extensions, modernization of roads linking north and south, and modernization of railway networks and airports. For its part, the city-state Singapore has established itself as a strategic Hub for all logistics companies in the past few years. As for Indonesia, according to Frost & Sullivan's forecast, by 2020 its logistics industry will have a growth rate of 15.4%. Learn more about LCL services.

The new agreement to reduce barriers <br> <br> due to the improved transport infrastructure, so that the often complex customs procedures more convenient is signed. The ASEAN single market plan should be implemented in 2016. By harmonizing business processes and trade regulations, promoting the good operation of ports, and realizing the liberalization of service activities related to maritime trade such as storage and warehousing and even professional freight forwarding services, the plan can facilitate more convenient trade and cargo flow. Learn more about Gefco customs and tax services.

GEFCO ambition: to support complex area of logistics activities <br> <br> In this context, GEFCO has chosen to set up a subsidiary in Vietnam, Thailand and South Korea. Gefco understands the specificities of all these countries in order to provide industry customers with optimized and controlled logistics solutions that meet their expectations. The demand for logistics services, internationalization, fast and clear order tracking, and enhanced environmental performance are key parameters that Gefco will consider when confronting its customers' supply chains to Asia and Asia. The new infrastructure in this area will support industrial expansion and provide companies with new ways to optimize their transportation plans and more reliable logistics. Now that we have recently opened up the Channel between Europe and China, it is feasible to achieve door-to-door logistics services across the entire region without interrupting the supply chain.

Thanks to the partner and large shareholder of the Russian Railways (RZD), Gefco has been given priority in this route, enabling it to carry cargo operations between Europe and Asia with a shorter time limit than maritime transport, while at the same time guaranteeing the security of transported goods. And quality.

GEFCO in China <br> <br> GEFCO in 1995 had set up an office in Beijing, from set foot in the Chinese market. In 2004, Gefco established a partnership with Daejeon Group (DTW) and launched a warehousing business. However, it was not until 2008 that the Gefco China subsidiary was formally established. Today, Gefco China has hired 1,150 employees nationwide and established 11 institutions. This enables Gefco to handle complex supply chains in the automotive industry for Shenlong Motor Co., Ltd. and other industry sectors. In 2015, Gefco China was selected as a partner by Zhonggong International Engineering Co., Ltd. (abbreviated as Zhonggong International), which is responsible for engineering design, procurement and construction contracting (EPC) projects. Gefco introduced its expertise into the heavy equipment management of China National Engineering International, and developed and implemented an international logistics plan, for example, allowing 50 dump trucks to reach Belarus from China via Kazakhstan by road and rail transport.



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