Cainiao signs MoU with SG Sagawa Vietnam

March 17, 2023 | 09:00
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A new partnership gives SG Sagawa Vietnam access to Cainiao's premium warehouse facilities in Vietnam's prosperous Mekong Delta to support their current and new global clients.

Cainiao Vietnam, a subsidiary of Cainiao Network- the logistics arm of Alibaba Group, has just announced the signing of a MoU with Sagawa Vietnam, a leading foreign integrated logistics service provider, to promote stronger collaboration in Vietnam's logistics sector.

Located at the Cainiao P.A.T. Logistics Park and Cainiao Dong Nai Smart Logistics Park, the premium warehouse space offers a strategic geographical advantage for business tenants due to its high accessibility.

Both parks boast multiple access points that link directly to Ho Chi Minh City, Long Thanh International Airport, and major seaports, such as Cat Lai and Cai Mep-Thi Vai, making them an ideal choice for businesses looking for an efficient way to transport goods and expand their business.

Cainiao signs MoU with SG Sagawa Vietnam

As a result, tenants can benefit significantly from the strategic locations, and SG Sagawa Vietnam's extensive global expertise and local network.

As one of the country's leading players since 1997, SG Sagawa Vietnam currently offers key logistics services, including domestic and international air freight, sea freight, trucking, and warehousing.

Furthermore, SG Sagawa Vietnam can utilise the parks' state-of-the-art facilities and accompanying services that feature advanced technologies for warehousing operations and logistics management.

In addition to the premium infrastructure, world-class services, such as customer support, consultation services, and technical assistance also form part of Cainiao Vietnam's offerings, providing companies with a competitive edge in the industry.

Looking forward into the future, Cainiao foresees a strong increase in demand for logistics and supply chain services in Vietnam.

“Thanks to the competitive operational costs, integrated supply chain sector, and favourable free trade access, among others, Vietnam is a rising manufacturing hub that is key to addressing logistics needs,” said Xing Zhang, general manager of Cainiao Vietnam.

With the ASEAN warehousing and distribution logistics market forecasted to grow at a compound annual growth rate (CAGR) of more than 10.5 per cent until 2027, Vietnam's warehousing industry is expected to see an 11 per cent CAGR until 2027. With such potential, businesses need to align and renew their supply chain strategies to keep up with ever-increasing consumer demand for more efficient logistics services,” Xing Zhang said.

Home to more than 900,000 enterprises, of which 97 per cent are small- and medium-sized enterprises (SMEs), Vietnam has witnessed robust growth in local and global demand for made-in-Vietnam goods and a thriving eCommerce market.

Hence, SMEs across the country are experiencing a gratifying business boom, leading to a surging demand for warehousing facilities.

Additionally, following the pandemic, demand is further fuelled by logistics and supply chain disruptions, limited container shipping space, and road congestion. Consequently, Cainiao Vietnam is also set to adapt its services to support businesses to enhance and diversify their inventories and warehouse space.

Founded in 2013, Cainiao Network 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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