In accordance with Ho Chi Minh City’s development strategy to make the city a major logistics hub and reduce related costs to 16 per cent by 2025, e-commerce platforms are accelerating the competition for logistics warehouses.
HO CHI MINH CITY, Vietnam, Nov. 4, 2019 /PRNewswire/ — In early Oct 2019, BEST Inc. announced the official launch of its express parcel delivery and logistics services in Vietnam with a kick-off ceremony in Ho Chi Minh City. Founder, chairman, and CEO Johnny Chou said, “We are building a smart sorting centre of the highest capacity in Vietnam in partnership with BW Industrial Development JSC, which is expected to be completed in April 2020. The 4.5-hectare facilities will have cutting edge automation, including high-speed automatic sorting lines and dimensions.”
GHN Express Delivery Corporation has also launched an automated system capable of sorting 30,000 orders per hour in warehouses located in Hanoi.
Meanwhile, warehouse quality in Vietnam has not yet been able to catch up with the demands of major e-commerce platforms as well as international logistic services. Nelson Wu, general director at BEST Vietnam noted that when he first came to Vietnam, he came across over 50 facilities and worked with more than 10 agents until they eventually found BW. “All of the services we provide need state-of-art facilities from professional developers. However, even though the digital economy and e-commerce in Vietnam was moving fast, which is why we are here, good facilities that can accommodate the requirements of international players like BEST are rare,” Wu said.
The imperative of opportunity is motivating the development of logistics warehouses in general and fulfillment centres in particular. This explains the reason why big e-commerce names in Vietnam such as BEST Inc., Lazada, Tiki, and Sendo have chosen to build their own fulfillment centres, in order to maintain service quality as well as to optimize logistics management costs.
C.K.Tong, CEO of BW added, “With high-quality warehouses such as the one we developed for BEST and Shopee, BW is expecting to create a new concept of smart logistics warehouses that integrates multiple elements such as location, design, automation, and customer care to bring the best experience to service users. I believe that it is time to create new standards for the supply chain in Vietnam, meeting the increasing demands of the consumer economy.”