FM Logistic has been awarded a contract from One Mount Group’s subsidiary VinShop, one of Vietnam’s largest purchasing organisations, to provide warehousing and order fulfilment services. The services will support VinShop’s new online marketplaces VinShop and VinID. VinShop acts as an intermediary between small independent stores and large consumer goods companies, with the aim to help all parties benefit from the rapid growth of Vietnam’s retail sector.
Under the agreement, FM Logistic will use its new warehouse and distribution centre at Băc Ninh, near Hanoi. Inaugurated in May 2020, the $30m logistics centre will handle fast-moving consumer (FMCG) goods, such as ambient food, drinks, home and personal care products. FM Logistic will receive, store and prepare goods for delivery to retail stores across northern Vietnam.
FM Logistic’s international retail expertise, omnichannel logistics experience and expanding logistics infrastructure in Vietnam were key in the decision process.
“The Vietnamese market holds tremendous potential for retailers, but competition is fierce. In Vietnam as elsewhere, efficient logistics management is key to developing omnichannel strategies and delivering a consistent customer experience across retail channels. We are proud to help VinShop support the competitiveness of Vietnam’s traditional retail sector,” said Hamza Harti, FM Logistic’s Country Managing Director for Vietnam.
FM Logistic’s revenue in Vietnam doubled in the fiscal year ended March 2020, helped by contract wins and the addition of storage space. Among its other retail customers in the country are Emart and My Kingdom. FM Logistic started investing in Vietnam in 2017. In 2020, it opened the first section (21,000 sq m) of its own logistics platform at Băc Ninh. Once completed, this multi-client site will offer 52,000 sq m of storage space. The building, which is registered under the LEED green building programme, has been designed to achieve energy self-sufficiency using power generated by solar panels.
Source: FM Logistic
