Target Logistics (TLG)

[slow_feet]

11/13/06 -- Vietnam on Target


The U.S. Export-Import bank loaned Vietnam Airlines $400 million to help purchase four Boeing 787 airliners. In 2003 Ex-Im financed purchase of four B777-200s. The carrier moves 6.5 million passengers a year and expects to carry 11 million people a year by 2015. Vietnam Airlines plans to double its fleet to 86 planes by 2015 and also has ordered 10 Airbus aircraft, the first of which are expected to arrive later this year.

"Although it may be hard for some Americans to imagine that Vietnam could compete with China, a recent decision by Intel to build a huge microchip facility near Ho Chi Minh City, (SGN) instead of China, demonstrates that Vietnam is becoming a cost effective alternative to China and other Asian nations," Jacky Hien manager of Target Logistics/Sky Logistics Services Ho Chi Minh office told FT.

Lew Coppersmith pioneered Target Air Freight 36 years ago purchasing belly and freighter space wholesale and selling it to shippers retail.

Today, son Chris Coppersmith is president and CEO of Compton, California-based Target Logistics Services with more than 45 offices running the table on all types of value-added logistics worldwide.

"Vietnam serves as a key building block in forging a complete supply chain network in Asia, increasing our worldwide capabilities," Chris Coppersmith said.

Jacky Hien couldn’t agree more.

"Multi-national companies are beginning to realize there are substantial cost advantages here in Vietnam.

"Factory wages average $50 to $60 per month, which is about half that of China and considerably below the 'five tiger' nations of Southeast Asia.

“Added to the labor advantage is a determined effort by the government to develop a modern infrastructure in Vietnam with the building of roads, airports and seaports to facilitate commerce.”

Hien also pointed to the fact that Vietnam has one of the highest rates of growth anywhere on earth with a 7 percent increase in GDP annually for the past fifteen years.

The country will be joining the World Trade Organization at the end of 2006, which Hien believes will make it easier to do business with the country's 84 million people.

The company expects to at least double in size during 2007.

"We are just at the beginning of our growth," Jacky Hien said.

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