French logistics and transport company FM Logistic is breaking ground on its USD 30 million warehouse and distribution centre in Bac Ninh, 20 km from Hanoi, to tap on the fast-growing outsourced logistics market in Vietnam.
Once completed, the new multi-client facility will employ around 300 people and provide 52,000 sqm of storage space for up to 70,000 pallets. Completion of the first phase of 21,000 sqm is expected in spring 2020.
The company says that among the customers for the new Bac Ninh distribution centre is Brenntag, a global market leader in chemical distribution.
Vuong Le Minh, Supply Chain senior manager, Brenntag Vietnam, highlights: “After one year of satisfying cooperation with FM Logistic in Bac Ninh, we have decided to expand this cooperation to temperature-controlled products. The new distribution centre will provide us with more space to absorb our important growth.”
The demand for logistics is rising in Vietnam, one of the world’s fastest growing economies with a GDP growth of 7.0 per cent in 2018. The increasing domestic manufacturing, the rise in wages and consumption, the young population and booming e-commerce are also driving the Vietnamese logistics market.
This presents opportunity for international 3PL companies providing value-added logistics services and last-mile delivery, FM Logistics says.
“The Bac Ninh warehouse and distribution centre will support the development of food, retail, FMCG, industrial and cosmetics companies on the booming Vietnamese market,” says Hamza Harti, FM Logistic’s country managing director for Vietnam.
“It will also increase FM Logistic’s warehousing space in Vietnam almost tenfold, at a moment when class A-warehousing is in high demand. This testifies to our commitment to investing in Vietnam.”
The facility has been designed by FM Logistic’s sister company NG Concept to handle a wide range of items, including temperature-sensitive products, fast-moving consumer goods, electronic appliances, spare parts and hazardous products.
Services offered at the warehouse will include storage (whatever the temperature requirement), handling, co-packing (or value added services, as they are called in Vietnam) and distribution. The flow optimisation inside and outside the facility make it suitable for high-demanding modern retail operations.
From May 2019, FM Logistic will also start operating a rented 6,500 sqm warehouse in An Phu, Binh Duong, less than 30km north of Ho Chi Minh City.
The company started operations in Vietnam in August 2017. In 2018, it started providing nationwide transportation services, using a network of partners.
FM Logistic is a family-owned independent logistics company with revenues of EUR 1.2 billion in the fiscal year to March 2018, two-thirds of which made outside of France. It is active in 14 countries across Europe, Asia and Latin America and employs more than 26,000 people.