Global logistics and supply chain provider OOCL Logistics has signed warehousing leases with Cainiao to leverage its logistics park. Accordingly, OOCL will be managing the facility for its clients, namely leading dairy player TH Group, children’s toy brand N Kid, and Japanese retailer Kohnan Japan.
The onboarding of industry leaders is a testament to the park’s premium accessibility and quality, with the two newest tenants aiming to improve their business diversification and implement a more cost-efficient supply chain management in the region.
|Cainiao P.A.T. Logistics Park in Long An province |
To help businesses remain future-ready by capturing growth opportunities and staying ahead of the next big wave, Cainiao selected Long An as the first province to establish its premium warehouse facility in Vietnam.
This is primarily based on two key factors pivotal to establishing its tenants' business competitiveness and long-term operations in the region, namely the accessibility and quality of the facility.
|As a world-class logistics and supply chain service provider with an extensive network spanning 50 countries and regions, OOCL Logistics has recognised the park's strategic location and quality facility as compelling factors to weave Long An into its warehousing network. |
Accessibility has a direct impact on logistics operations efficiency and business profitability. A strategically located warehouse with modern specifications improves overall logistics operations costs, and more importantly, reduces lead time in supply chain management.
As a world-class logistics and supply chain service provider with an extensive network spanning 50 countries and regions, OOCL Logistics has recognised the park's strategic location and quality facility as compelling factors to weave Long An into its warehousing network.
OOCL Logistics has since shifted its warehousing away from Ho Chi Minh City as part of its upgrade, diversification, and cost efficiency management strategy. In turn, it will be leveraging the facility to benefit its customers via a more cost-efficient and nimble supply chain strategy, with logistics solutions such as warehousing, operation, and transportation.
“We are well-positioned to serve both international and domestic customers,” said Son Tran, general director of OOCL Logistics Vietnam. “Here in Vietnam, we aim to uphold our position as a leader in providing sophisticated transportation, warehousing, and distribution services. Utilising this warehousing space has enabled us to help other businesses to operate and manage their storage needs in the country as well as in the region.”
TH Group, which produces TH true Milk, has also selected Cainiao’s logistics facilities after an open tender process, largely due to the flexibility and accessibility on offer. This is a huge nod of confidence to the role that the facility stands to play in upholding TH’s quality and standards by reinforcing its supply chain management approach.
|Representatives of OOCL Logistics and TH at Cainiao P.A.T. Logistics Park |
In addition, Kohnan Japan, a home centre in Japan established in Vietnam in 2016, also selected Cainiao’s facility for its warehousing needs. With a focus on delivering a quality lifestyle to its customers, Kohnan will seek to uphold superior product standards and better serve customers in the market.
“Traditionally, typical warehousing locations in southern Vietnam are witnessing increasing saturation, with higher leasing costs. There are limited warehouse suppliers and land space to cater to future expansion needs. These limitations add further stress to the already stretched supply chain in the event that business needs to pivot or expand in the near future,” said Xing Zhang, general manager for Vietnam at Cainiao Smart Hub.
Cainiao Smart Hub is Cainiao’s smart infrastructure business comprising regional eHubs, global and domestic warehouses and industrial parks.
New tenants comprising both international and local businesses have recognised the strategic importance of Long An and how a diverse warehousing strategy will improve their long-term resilience in the post-pandemic era, and Xing says this is in line with industry trends.
“This revised approach brought to light the importance of warehousing solutions that are cost-effective and highly scalable, yet able to fit seamlessly into the broader supply chain flow via superior land, air, and sea connectivity,” he added.
Launched in the second quarter of this year, Cainiao's 110,000-square metre logistics park is strategically located in Long An to provide direct access to southern Vietnam's key business hubs including Ho Chi Minh City, Binh Duong, Dong Nai, and the Mekong Delta – home to more than 35 million people.
|The facilities cover 110,000 square metres |
Its strategic location minimises logistics bottlenecks, while the under-construction Ben Luc–Long Thanh Expressway is anticipated to enhance accessibility to a future Long Thanh International Airport and Cai Mep -Thi Vai port complex.
In addition, Vietnam is well-positioned to give logistics players a competitive edge as it is part of 15 different regional and global trade agreements, including the ASEAN Free Trade Area, Comprehensive and Progressive Agreement for Trans-Pacific Partnership, Regional Comprehensive Economic Partnership, and free trade deals with the EU and UK, among others.
Vietnam is also currently engaging in free trade negotiations with the European Free Trade Association, which includes Norway, Iceland, Liechtenstein, and Switzerland.
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