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Freight company set to cash in on e-commerce boom in Laos

Freight company set to cash in on e-commerce boom in Laos

An increasing number of cargo and freight companies in Laos are in the race to provide quicker parcel delivery services across the country.

Several companies are engaged in the delivery of boxes and parcels across Laos.

One start-up delivery service provider, HAL Logistics Co Ltd, a Vientiane-based cargo and freight company, last week held a ceremony to officially declare the full rollout of its services following its launch last year.

The ceremony was attended by Luang Namtha provincial governor Phetthavone Philavanh, Deputy Minister of Public Works and Transport Dr Santisouk Simmalavong, Lao National Chamber of Commerce and Industry vice-executive president Daovone Phachanthavong, and other guests.

Speaking at the event, the company’s manager, Sisavath Mayongseun, said the firm’s service priorities include delivering parcels and packages to all locations in Laos.

“Compared to other companies, we provide similar services but the difference is that we don’t have any franchises.

However, we now have 34 branches countrywide,” he said, adding that staff can pick up parcels from customers’ homes.

Sisavath said he launched the service to support the rising trend of e-commerce at a time when online trading is booming.

“This is a great opportunity for the growth of both online trade and delivery services,” he said.

The company employs almost 200 youngsters of whom the majority are new graduates.

The company accepts parcels and boxes weighing from 0.1kg to 50kg, and delivery fees range from 12,000 kip to 80,000 kip ($1.35 to $9) or more.

The firm uses trucks and motorcycles to deliver products and has a mobile phone application that enables customers to track their packages.

Addressing the ceremony, Dr Santisouk said he was confident that HAL Logistics had a bright future.

“What I’m trying to say is that Laos is known as a landlocked country but is now on the way to becoming a land-linked country after the arrival of the Laos-China railway.

“Also, we are close to China, which has the biggest market for exports in the region,” he said.

He encouraged people to start their own business as the government is facilitating improvements such as the easing of unnecessary barriers and removal of red tape.

Alongside its domestic freight service, the company hopes to launch cargo and freight services for customers from Thailand, Vietnam, Japan and the Republic of Korea within the year.

VIENTIANE TIMES/ASIA NEWS NETWORK

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