FM Logistic invests in US$ 30 million distribution centre in Vietnam

FM Logistic invests in US$ 30 million distribution centre in Vietnam

French logistics and transport company FM Logistic will break ground today (10 April) on its US$ 30 million warehouse and distribution centre in Bac Ninh, 20 km of Hanoi.

Once completed, the multi-client facility will provide 560,000-square-foot of storage space for up to 70,000 pallets.

Completion of the first phase is expected in spring 2020.

Hamza Harti, country managing director for Vietnam, FM Logistic said: “The Bac Ninh warehouse and distribution centre will support the development of food, retail, FMCG, industrial and cosmetics companies on the booming Vietnamese market. It will also increase FM Logistic’s warehousing space in Vietnam almost tenfold, at a moment when class A-warehousing is in high demand. This testifies to our commitment to investing in Vietnam.”

Among the customers interested in the Bac Ninh distribution centre is Brenntag, a global market leader in chemical distribution.

Vuong Le Minh, Supply Chain Senior Manager, Brenntag Vietnam said: “After one year of satisfying collaboration with FM Logistic in Bac Ninh, we have decided to expand the cooperation to temperature-controlled products. The new distribution centre will provide us with more space to absorb our important growth.”

The demand for logistics is rising in Vietnam, one of the world’s fastest growing economies with a GDP growth of 7% in 2018. The increasing domestic manufacturing, the rise in wages and consumption, the young population and booming e-commerce are also driving the Vietnamese logistics market. This presents opportunity for international 3PL companies providing value-added logistics services and last-mile delivery.

The facility has been designed by FM Logistic’s sister company NG Concept to handle a wide range of items, including temperature-sensitive products, fast-moving consumer goods,  electronic appliances, spare parts and hazardous products.

Services offered at the warehouse will include storage (whatever the temperature requirement), handling, co-packing (or value added services, as they are called in Vietnam) and distribution.

The company began operations in Vietnam in August 2017. In 2018, it started providing nationwide transportation services, using a network of partners.

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