Japanese company launches goods delivery services

Japan’s leading transportation company Sagawa Holdings has announced that it will launch delivery services in Vietnam in February on a trial basis, and then officially from March.

Sagawa announced on February 1 that this year the firm will invest 100 million yen (US$1.2 million) to buy more than 30 lorries and motorbikes for goods transportation and to hire about 100 employees for delivery services.

Sagawa Holdings has set the target of earning one billion yen (US$12 million) per year in revenues within the next three years.

The company will initially deliver goods for businesses in Hanoi and Ho Chi Minh City, and then expand its services to other regions and other groups of customers.

Upon receiving orders by phone from customers, Sagawa will pick up and deliver goods to their destination, within one day for inner city businesses, at the price of about US$4.20 per parcel and within 3 or 4 days for goods delivered between Hanoi and HCM City at the price of $7.60 per parcel.

In the future, Sagawa will reduce the time for goods delivery between the two cities to just one day, using aviation.

Vietnam is the second foreign market where Sagawa is opening operations.

Sagawa said it has chosen Vietnam because this market has cheap labour and high economic growth, while many Japanese companies are operating here.