MEETING WITH ROSS NICHOLSON (GENERAL MANAGER OF DHL WORLDWIDE EXPRESS) Ross Nicholson felt that it had access to good market information as DHL had been operating in Vietnam since 1988. DHL worked through the Vietnam Post Office as the Vietnamese government still controlled the provision of mail and postal services tightly. Nicholson was assigned to Vietnam as a technical advisor in April 1994. Ross told us that things had not boomed as expected since the American embargo was lifted. Some obstacles, like chaotic taxation laws and investment risks, still plagued potential investors. In the short-term, the Mexican peso incident was likely to affect investor outlook, especially in emerging economies like Vietnam. In his opinion, the Asians, especially Japanese, were moving in very quickly, Hotels in Hanoi were usually full of Japanese.
In Nicholson’s opinion, the finance industry had the highest prospects for growth in the immediate future. Presently, agriculture was DHL’s biggest customer for the provision of shipping facilities. In time, more technologically advanced production activity would take place. DHL would then have the opportunity to sell logistics services to these new entrants, leveraging of their long experience in the Vietnamese market. DHL would like to get itself integrated into these companies, which would be very happy to listen because they were in start-up mode.
Nicholson believed that these would not be anything spectacular for two to three more years. He cited the lack of skilled. IT personnel as one of the obstacles to IT growth. Still, he felt that it was well worth the investment of establishing a presence in Vietnam now. So that when the boom came. Companies like DHL would be well-positioned to capitalize on the ensuing growth. DHL currently used a stand alone PC for its IT needs. This was certainly not suitable for the anticipated growth. Ross intended to upgrade to a nationwide system comprised of two HP 9000 E45s.