Cainiao Network, (“Cainiao”), the logistics arm of Alibaba Group Holding Limited, today announced new tenants for its newly-operational Cainiao P.A.T Logistics Park located in Long An, Vietnam. Global logistics and supply chain provider OOCL Logistics has recently signed warehousing leases with Cainiao to leverage its logistics park. OOCL Logistics will in turn be managing the facility for their clients, namely the leading diary manufacturer in Vietnam – TH true Milk, Vietnam’s leading kids’ toy brand – N Kid and Japanese retailer – Kohnan Japan. The onboarding of industry leaders is a nod to the park’s premium accessibility and quality, with the two newest tenants aiming to improve their business diversification and implement a more cost-efficient supply chain management in the region.
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To help businesses remain future-ready by capturing growth opportunities and staying ahead of the next big wave, Cainiao selected Long An as the first province to establish its premium warehouse facility in Vietnam. This is primarily based on two key factors that will be pivotal to establishing its tenants’ business competitiveness and long-term operations in the region, namely the accessibility and quality of facility.
Accessibility has a direct impact on logistics operations efficiency and business profitability. A strategically located warehouse with modern specifications improves overall logistics operations costs, and more importantly, reduces lead time in supply chain management.
As a world-class logistics and supply chain service provider with an extensive network spanning 50 countries and regions, OOCL Logistics has recognized the Park’s strategic location and quality facility as compelling factors to weave Long An into its warehousing network. OOCL Logistics has since shifted its warehousing away from Ho Chi Minh city as part of its upgrade, diversification and cost efficiency management strategy. In turn, OOCL Logistics will be leveraging the facility to benefit its customers – TH true Milk, N Kid and Kohnan Japan, via a more cost efficient and nimble supply chain strategy, with logistics solutions such as warehousing, operation and transportation.
“As a global company based in Asia, OOCL Logistics is exceptionally positioned to serve both international and domestic customers. Here in Vietnam, we aim to uphold our position as a leader in providing sophisticated transportation, warehousing and distribution services. Utilizing this warehousing space has enabled us to help other businesses to operate and manage their storage needs in the country as well as in the region,” said Mr. Son, General Manager of OOCL Logistics Vietnam
TH true Milk, a leading dairy manufacturer in Vietnam, has also selected Cainiao P.A.T. Logistics Park after an open and formal Request For Quote (RFQ) tender process, largely due to the flexibility and accessibility that the facility offers. This is a huge nod of confidence to the role that the facility stands to play in upholding TH true Milk’s quality and standards by reinforcing its supply chain management approach.
In addition, Kohnan Japan, the leading home center in Japan and established in Vietnam since 2016, has also selected Cainiao’s facility for their warehousing needs. With a focus on delivering a quality lifestyle to its customers, Kohnan will tap on the logistics park to uphold superior product standards and better serve customers in the market.
“Traditionally, typical warehousing locations in Southern Vietnam are witnessing increasing saturation, with higher leasing costs. There are limited warehouse suppliers and land space to cater to future expansion needs. These limitations add further stress to the already stretched supply chain in the event that the business needs to pivot or expand in the near future,” said Xing Zhang, General Manager for Vietnam at Cainiao Smart Hub.
Xing added, “Our new tenants comprising both international and local leading businesses have recognized the strategic importance of Long An and how a diverse warehousing strategy will improve their long-term resilience in the post-pandemic era. This is in line with industry trends as 92 percent of senior global supply chain executives have made physical changes to their supply chain, and we are seeing businesses increasingly shift to a ‘just-in-case’ supply chain management approach to ensure more than sufficient inventory is available in-market. This revised approach brought to light the importance of warehousing solutions that are cost-effective and highly scalable, yet able to fit seamlessly into the broader supply chain flow via superior land, air, and sea connectivity.”
Launched in the second quarter this year, Cainiao’s 110,000-square meter Cainiao P.A.T. Logistics Park is strategically located in Long An province, which has direct access to Southern Vietnam’s key business hubs including Ho Chi Minh City, Binh Duong Province, Dong Nai Province, and the Mekong Delta – a coverage area of more than 35 million people.
Its strategic location minimizes logistics bottlenecks due to road traffic and accidents with three-way access at the intersection of Ng Huu Tri, 1A Highway, and HCM-Trung Luong Highway. Additionally, the under-construction Ben-Luc–Long Thanh Highway Express Road is anticipated to enhance accessibility to Long Thanh International Airport and the Cain Mep Thi Vai Port.
In addition, Vietnam is well-positioned to give logistics players a competitive edge as it is a party to 15 different regional and global trade agreements. Vietnam is a member of ASEAN Free Trade Area (AFTA), EU-Vietnam Free Trade Agreement (EVFTA), Comprehensive and Progressive Agreement for Trans-Pacific (CPTPP) with 10 markets (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru and Singapore), Regional Comprehensive Economic Partnership (RCEP), and the UK-Vietnam Free Trade Agreement (UKVFTA). Vietnam is also undergoing free trade negotiations with the EFTA countries (Norway, Iceland, Liechtenstein, and Switzerland).
For leasing inquiries, businesses can reach out to Kathy Nguyen at +84 866 78 78 60 or leasing.vn@cainiao.com.
Source: Cainiao Network
