Containers of goods are loaded at Hai Phong Port in northern Vietnam. (Photo: VNA) China’s Alibaba made a new strideto raise its logistics market share in the country when the Cainiao P.A.TLogistics Park of its affiliate Cainiao Network will officially becomeoperational in Ben Luc district of the Mekong Delta province of Long An in thesecond quarter of this year.
Covering 110,000sq.m., this park is situated at the intersection of Nguyen Huu Tri Road,National Highway 1A, and Ho Chi Minh City - Trung Luong Expressway. This strategiclocation directly leads to HCM City, an economic and financial hub of Vietnam, andthe Mekong Delta, which produces 20 percent of the country’s total agriculturaloutput.
Cainiao Network saidits target customers are small- and medium-sized enterprises, which areaccounting for 97 percent of the roughly 800,000 businesses in Vietnam.
The firmadded it will develop its second logistics chain in southern Dong Nai province,noting that this smart logistics centre will cover 168,000s q.m. and leaseabout 90,000 sq.m. of the area to businesses amid disrupted supply chains.
In the first twomonths of 2022, many large logistics projects were invested into Vietnam.
Among them, the Singapore-based SEA Logistic Partners (SLP)kicked off construction of the SLP Park Xuyen A project at the Xuyen AIndustrial Park in Long An province in late February. This project, with totalarea of over 61,000 sq.m., is set to supply Grade-A warehouses.
Through the jointventure with the logistics real estate firm GLP, SLP has had six projectslicensed in Vietnam so far and is planning to continue boosting investment inthis sector in the time ahead.
In January, Singapore’sEmergent Vietnam Logistics Development Pte. Ltd announced a 35 million USD projecton logistics services, including cold storage warehouses to meet growing demandof enterprises in the country.
Savills Vietnam saidbooming e-commerce, optimistic economic growth, and growing domestic productionand consumption have been generating true opportunities for the logisticssector, especially when those operating in e-commerce need more storage spacethan traditional retailers. Therefore, with more modern logistics centres andmore effective management solutions, the economy will be able to address theweaknesses in supply chain, warehousing, sorting, preservation, and processing.
The logistics marketin Vietnam is predicted to grow strongly, by 14 - 16 percent annually to about40 - 42 billion USD.
The influx of foreigninvestment in logistics is causing huge competition pressure on domestic firmssince foreign businesses hold capital and technological advantages.
The Vietnam LogisticsBusiness Association (VLA) pointed out that the market is currently dominatedby foreign firms while local ones are small, lack experience, and yet connectedwith links in supply chains or with exporters and importers.
Given this, VLAproposed the Government step up developing national expressways, adapt the CommercialLaw to the current logistics situation, and create support policies forVietnamese logistics businesses./.
VNA
