Cainiao Network, the logistics arm of Alibaba Group, has announced that its new Cainiao P.A.T. Logistics Park in Long An will be ready for operation in the first half of the year. The launch of the 110,000sq.m warehouse space comes as the country sees a surge in demand for local goods and a growing need for warehousing.
|The warehouse space will provide services such as local distribution, supply chain management, and export logistics
Located in Ben Luc District of Long An Province, the Cainiao P.A.T. Logistics Park is at a strategic location that offers direct access to the country's key business hubs, such as the Mekong Delta – which accounts for 20 per cent of the global rice trade – and Ho Chi Minh City, one of Vietnam's major economic centres.
With a variety of unit sizes spanning from 4,000 to 10,000sq.m and access to Cainiao's pioneering tracking service, the park provides efficient and cost-effective storage and shipping solutions for Vietnam's small and medium-sized enterprises (SME).
Vietnam is home to 800,000 enterprises, of which 97 per cent are SMEs. With increased local and global demand for made-in-Vietnam goods and a thriving e-commerce market, SMEs across the country are experiencing a much-welcomed business boom. This translates to surging demand for warehousing facilities.
Today, this demand is further fuelled by logistics and supply chain disruptions, limited container shipping space, and road congestion, causing many businesses to adapt their supply chain practices to focus on expanding and diversifying their inventories and warehouse space.
"At Cainiao, we are committed to supporting local businesses, particularly SMEs, with an efficient and comprehensive logistics network that can lower trade barriers, allowing them to tap on overseas market opportunities and access a wider consumer base. The launch of Cainiao's logistics park in Long An plays an instrumental role in mitigating supply chain disruptions by providing optimal warehousing facilities to strengthen businesses' inventory management strategy," said Eric Xu, general manager of Cainiao Smart Hub.
As trade is undergoing a structural shift from traditional sales channels to e-commerce platforms, which is a driving force for the shift to smarter logistics facilities and services, companies require more space than brick-and-mortar retailers, as they operate with larger inventories, as well as require additional space for returned goods.
As a result, JLL Vietnam predicts warehouse demand will grow three times faster than the rate of e-commerce growth –leading to an increased need for efficient large-scale warehousing solutions.
Founded in 2013, Cainiao Network is a smart logistics company. As part of its commitment to creating customer value, it adopts a collaborative approach to logistics that aims to improve efficiency and customer experience for all players along the supply chain. It carries forward Alibaba's mission of making it easy to do business anywhere by aiming to deliver anywhere in China within 24 hours, and across the globe within 72 hours.
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