BW Industrial Development JSC (BW) has recently inked a strategic co-operation with e-commerce platform Shopee and China's smart logistics service provider BEST Inc. to create modern logistics platforms.
|BW Industrial tying the know with Shopee and BEST Inc. |
Accordingly, BW is developing warehouses for Shopee and BEST Inc. in Ho Chi Minh City. This will be the first automated warehouse of BEST Inc. in Vietnam and the third fulfilment centre of Shopee in Vietnam.
According to Tran Tuan Anh, managing director of Shopee Vietnam, investing and developing in logistics is one of the factors for the expansion and enhancement of e-commerce. Since entering Vietnam, Shopee has been planning for investment and operation for two warehouses in Ho Chi Minh City and Hanoi. Expanding and continuously investing in logistics is not only a strategy of Shopee to accompany the rapid development of the e-commerce industry but also meet the needs of customers during the shopping season.
“We expect that the strategic partnership with BW will provide a good supply chain as well as better experiences for Shopee users and firmly strengthen the competitive position of Shopee in the e-commerce industry. This also demonstrates our commitment to invest, research, and enhance user experience,” he noted.
Meanwhile, the representative of BEST Inc. – the global integrated supply chain platform headquartered in Hangzhow – Nelson Wu, general director of BEST Inc. Vietnam, commented that the express industry in Vietnam has witnessed a strong upward trend. A study by Google and Temasek also showed that the ASEAN online economy is expected to leap forward from $50 billion in 2017 to $200 billion in 2025.
"This made us think of efficiency optimisation through the improvement of storage design and automation," he explained. “We chose BW because of its solid infrastructure platform which can help to deploy tech solutions and modern software to help customers manage their business and delivery activities better. These are added values that private and traditional delivery businesses have yet to achieve and will be a strong leverage for us to reach larger goals and serve the Vietnamese community better.”
In fact, leading companies like Shopee and BEST Inc. are expanding their business in Vietnam, leading to an increase in demand for logistics and real estate products that need to be personalised based on the business goals, costs, and progress of each customer.
Addressing this trend, C.K.Tong, CEO of BW, said, “With the two warehouses of Shopee and BEST Inc., BW is expecting to create the new concept of smart logistics warehouse that integrates multiple elements such as location, design, automation, and customer care to bring the best experience to service users. I believe that with the co-operation of three key players in industrial real estate, e-commerce, and logistics, we can create new standards for the supply chain in Vietnam, meeting increasing demands of the customer economy.”
BW Industrial Development is a joint venture between global private equity fund Warburg Pincus and Becamex IDC Corp. with the investment of over $200 million to develop logistics chains and industrial real estate in Vietnam. BW has proved its great ambition when putting into operation a total of 230 hectares of industrial parks nationwide such as Bau Bang, My Phuoc 2, Hai Duong, Haiphong, and Bac Ninh, attracting many domestic and foreign investors, with plans to expand by another 170 hectares of land in 2019.
As planned, BW will build an industrial real estate platform and logistics warehouse to meet the rising call from multinational corporations for third-party logistics or contract logistics and e-commerce companies.