T&T Group and SHB are working together with Vietnam Airlines and Vietnam Railways in a strategic way

DNHN - On August 12 in Hanoi, in front of leaders from Singapore's Ministry of Industry and Trade, Vietnam's Ministry of Industry and Trade, and Vietnam's Ministry of Transport, T&T Group and Saigon-Hanoi Bank (SHB) signed a contract with Vietnam Airlines Corporation (Vietnam Airlines) and Vietnam Railways Corporation (Vietnam Railways) for strategic cooperation (VNR). A Memorandum of Understanding was also signed by Vietnam Airlines and Vietnam Railways Corporation with T&Y SuperPortTM Company, which is a joint venture between T&T Group and YCH Group

As a result, the parties will work together to mutually harness each party's potential assets, including the capacity to connect enterprises with giant organizations across the world to produce extraordinary synergistic values for businesses and the Vietnamese economy.

Logistics is the "key" to firms working together to thrive sustainably

In the context of complex global changes, such as today, when illnesses, natural catastrophes, and geopolitical conflicts in certain nations... cause supply chains to collapse, commodities supply shortages and markets to contract. The business collaboration will be critical in rebuilding the market, developing multimodal transportation, and linking the continuous supply chain in Vietnam and the ASEAN area.

Speaking at the event, Mr Do Quang Hien, Chairman of the T&T Group Strategy Committee and Chairman of the Board of Directors of SHB Bank, stated that the Government of Vietnam encourages and promotes cooperation and linkage between domestic and foreign enterprises to exploit and develop potential, advantages for mutual development.

Cooperation partnerships, in particular, to link supply chains, create technology, manage capability, and raise competitiveness through improved logistics service efficiency, are seen as "critical" for firms to overcome present challenges and flourish sustainably in the future.

Mr Do Quang Hien added, "This will be a landmark and an essential foundation for businesses to achieve their promises in the shortest time possible, increase the efficiency of corporate investment, and contribute to the revival of the economy's marketplaces and supply chains."

Nguyen Hong Dien, Vietnam's Minister of Industry and Trade, congratulated the participating firms and stated, "Logistics plays a significant role in the market economy." The Ministry of Industry and Trade fosters collaboration between Vietnamese and Singaporean firms and appreciates all ideas and efforts to grow the logistics industry."

Cooperation will provide the parties with a strong development impetus

T&T Group will develop an advantageous system for Vietnam Airlines and Vietnam Railways Corporation to access and use T&T Group's potential and capabilities, according to strategic collaboration agreements.

Simultaneously, both businesses will prioritize the use of T&T Group and its member units' products and services in the following fields: corporate financial consulting - securities; insurance; real estate, infrastructure, resort services; airports, seaports, logistics infrastructure; consumer trade; sports, and other fields.

With over 30 years of development, two First Class Labor Medals, 600 member units, and over 80,000 employees countrywide and in developed nations such as the United States, Russia, Germany, and Australia... T&T Group presently engages in seven important economic sectors, with particular expertise in energy, logistics, and real estate.

This result is possible because of T&T's market repute. The Group has been chosen to collaborate with many of the world's largest business groupings and financial institutions. T&T Group will bring the world's largest enterprises to collaborate with Vietnam Airlines and the Railway Corporation to increase local and overseas markets, expanding customer scale.

T&T Group can also supply high-quality real estate items like as houses and flats since it has high-quality urban, resort, and hotel projects in more than 50 provinces and cities across Vietnam. lodging for Vietnam Airlines and Vietnam Railways Corporation workers and partners

T&T Group manages and operates various international deep-water ports; a joint venture with a Singaporean partner to engage in the SuperPortTM project in Vinh Phuc province, study and invest in an airport in the Central area...

T&T Group member units are the leading financial institutions in Vietnam in the field of insurance - securities, capable of providing a wide range of insurance services; advising, arranging, and underwriting bonds and stocks; consulting IPOs, mergers and acquisitions (M&A), corporate restructuring..., as well as directly participating in investment, divestment, and calling for domestic and international investors for Vietnam Airlines, General Corporation Vietnam Railway Co.

Meanwhile, as one of the top five largest private joint stock banks in Vietnam, SHB will provide banking and financial products and services to Vietnam Airlines and Vietnam Railways Corporation, including cash flow management services, centralized capital management, payment services, and the consideration of granting/maintaining short and medium credit lines and long-term/credit card issuance. The parties also agreed to work together to issue co-branded credit cards SHB - Vietnam Airlines and SHB - VNR that are linked with preferential programs and utility/service advantages for clients.

Mr Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines, stated during the event, "Strategic cooperation with T&T Group and SHB Bank would contribute strength and strong development momentum to the Vietnam Airlines' aviation ecosystem."

T&T Group will link huge organizations with opportunities to participate in the railway sector

T&T Group, in particular, will participate as an investor, a focal point to connect with large and capable corporations, and will coordinate with Vietnam Railways Corporation to research, survey, renovate, and upgrade new railway lines; study service models to cooperate and maximize Vietnam Railways' internal resources.

According to the Ministry of Transport, it is envisaged that in September 2022, it will be submitted to Politburo for review and comments on the North-South high-speed railway investment policy. This project will construct a double track measuring 1,435mm (international standard gauge), electrified, and 1,545 km long, with a top speed of about 320 km/h.

If this strategy is accepted, the railway sector would require a significant amount of investment capital, estimated at more than $58 billion. The collaboration between T&T Group and Vietnam Railways Corporation will contribute to realizing the goal of modernizing the railway industry to international standards and improving the efficiency of railway transport, which has faced many difficulties in recent years, by leveraging each party's strengths.

Bringing businesses together to improve multimodal transportation efficiency

T&Y SuperPort Vinh Phuc Company (T&Y SuperPortTM) - a joint venture between T&T Group and YCH Group (Singapore) - also signed an agreement of cooperation with Vietnam Airlines and Vietnam Railways Corporation as part of the event. The purpose of this collaboration is to promote and improve multimodal freight transit, improve supply chain efficiency, and address logistical difficulties in Vietnam and the area.

T&Y SuperPortTM is an investor in the SuperPortTM Vinh Phuc project, the ASEAN Smart Logistics Network's first "superport." The project was developed on 83 hectares in Vinh Phuc province, with a total investment capital of more than USD 200 million and a planned capacity of 530,000 TEU/year. Phase I of the project is planned to be finished and operational by the end of 2022.

According to the memorandum of agreement, T&Y SuperPortTM will collaborate with Vietnam Airlines to integrate the two companies product and service offerings, as well as leverage the customer network in Vietnam and other countries. Use SuperPortTM Vinh Phuc's Extended Air Storage (OACT) to make use of the complete spectrum of Vietnam Airlines services/commercial models, as well as cargo possibilities from YCH's network in China, India, and ASEAN.

With the volume of goods transported by air expected to increase by about 12% per year, the collaboration between the two companies will help to reduce congestion at Noi Bai Airport, shortening the time it takes for goods to arrive, and lowering logistics costs, as well as increasing order fulfilment efficiency and contributing to the growth of Vietnam Airlines' freight segment.

T&Y SuperPortTM also agreed with Vietnam Railways Corporation to strengthen the railway connection of the Vietnam SuperPortTM Vinh Phuc superport project through the existing and new national railway network, as well as to construct a railway branch and related works to connect the national railway to the SuperPortTM Vinh Phuc project area.

Furthermore, the two companies will work together to expand railway links in Vietnam and between Vietnam and China. They are interested in establishing a railway linking to Yunnan (Kunming) China and will seek additional possible investors for the project.

Dr Robert Yap, Chairman of YCH Singapore Group, stated at the ceremony that YCH Group would continue to help T&Y SuperPortTM in developing multimodal smart logistics infrastructure that is sustainable in Vietnam and expands throughout ASEAN. YCH Group is also devoted and eager to collaborate with partners to achieve its objectives.

Witnessing the signing ceremony, Mr Tan See Leng, Second Minister of the Ministry of Industry and Trade and Singapore's Minister of Labor, stated that the occasion is significant not only for companies but also for enhancing and strengthening connections between Vietnam and Singapore.

SuperPortTM Vinh Phuc will serve as a crucial link and driving force in the growth of Vietnam's logistics industry, increasing freight transport capacity between Vietnam and other countries. Mr Tan See Leng stressed that the project will be one of the largest and highest-quality logistics facilities in Vietnam and Southeast Asia.

PV