DHL Express expects to sustain double-digit growth in its Philippine operations this year, driven largely by the strong domestic business as the country is among the fastest growing countries under its GT20 initiative and the huge potential of the small and medium enterprise (SME) sector.
Roderick Queppet, vice president for commercial operations at DHL Express Philippines, said during a media roundtable that the company aims to sustain its healthy growth momentum this year. “We continue to aspire,” Queppet said.
The Philippines is among DHL’s GT20, or Geographic Tailwinds, markets — a strategic initiative targeting 20 high-growth countries.
As part of DHL’s global business plan, these selected markets are expected to grow much faster than the global average, helping drive international trade and revenue. Other Asian countries included in the list are China, India, Indonesia, Singapore, and Vietnam. The GT20 countries are also expected to benefit from geopolitical developments and the resulting disruptions in the global supply chain.
“The Philippines is actually growing, I would say we are really competitive,” he said, noting that some markets are expanding faster depending on prevailing conditions.
To support growth, DHL has been pursuing its GoTrade initiatives in the Philippines to help address major challenges faced by SMEs: access to financing, technology, skills and knowledge, and logistics.
On financing, Meinert said DHL is exploring strategic partnerships with local commercial banks to support the SME sector.
In Malaysia, she noted, the company has already signed memoranda of understanding with local banks, while discussions with Philippine banks are still ongoing.
GoTrade also focuses on helping SMEs expand their networks and facilitate exports.
For instance, GoTrade forged a memorandum of understanding with the Department of Trade and Industry last year to train SMEs and prepare them for export opportunities, as more than 90 percent of businesses in the country are SMEs.
GoTrade has already been conducting training sessions and workshops to help SMEs better understand the complexities of cross-border trade, including how to maximize the benefits of the country’s growing number of free trade agreements (FTAs).
Queppet said DHL is targeting to train 600 SMEs this year.
GoTrade Head Sarah Meinert said the program has already trained roughly 100 Filipino SMEs.
SMEs account for 30 percent of DHL’s Philippine business.
As the DHL is the country’s leading logistics provider with a 60-percent market share, it is company said it is leveraging its position and in helping the SME sector grow their exports.
“GoTrade is leveraging its purpose and connecting SMEs for global trade to strengthen economies,” Queppet noted.
DHL operates two gateways in the Philippines, one in Manila and another in Cebu. It operates six flights a week from Hong Kong to Manila and Cebu, connecting the Philippines to more than 220 countries and territories.
The company has been operating in the Philippines for the past 55 years and currently has 196 vehicles, 70 of which are electric vehicles. DHL also operates a dedicated aircraft that flies six times weekly from its Hong Kong hub to Manila and Cebu, linking the country to 220 countries and territories worldwide.
