FM Logistic awarded contract from large Vietnamese technology company VinShopVietnam
4 November 2020 - Logistics provider 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 fulfillment 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 US$ 30 million 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.
Vietnam’s retail sector is developing fast. According to a 2020 Deloitte study (The Vietnam Consumer Survey. An accelerating momentum), it experienced a growth rate of 11% between 2013 and 2018. Although e-commerce and organised retail are rising quickly, small independent stores (known in Vietnam as “general trade”) continue to dominate the retail landscape.
VinShop plans to help small stores become more competitive through better sourcing, technology and supply chain management.
“With the vision and promising goals to be the largest logistics network in Vietnam, VinShop focuses on investing resources on innovative technology, and developing data platforms, in order to manage and optimize logistics services and supply chains on a large scale. Therefore, a strategic partnership with FM Logistic will aggregate value to VinShop’s business by leveraging FM Logistic’s advanced resources and operating capabilities, along with ensuring an increase in the supply chain productivity and optimizing costs in the stages,” said Nguyen Tran Thi - VinShop’s Logistics Director.
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 inaugurated the first section (21,000 sqm) of its own logistics platform at Băc Ninh, near Hanoi. Once completed, this multi-client site will offer 52,000 sqm of storage space. The building, which is registered under the LEED green building program, has been designed to achieve energy self-sufficiency using power generated by solar panels.
Pictures of the Băc Ninh warehouse can be found here:
VinShop by One Mount Group provides full-suite business development solutions in FMCG for suppliers and retailers through a digital ecosystem and modernised distribution infrastructure to improve the efficiency of the retail value chain in Vietnam, for outstanding benefits and experience for suppliers, retailers, shoppers / consumers.
Together with VinID, VinShop is backed by the technology capabilities and resources of One Mount Group, a strategic partner of Techcombank and Vingroup.
About FM Logistic
Founded in France in 1967, FM Logistic is an independent, family-owned company that provides supply chain solutions to a broad range of companies in the FMCG, retail, perfume & cosmetics, industrial manufacturing, and healthcare industries. It is active in 14 countries across Europe, Asia, and Latin America (Brazil). It achieved revenue of €1.43 billion in the fiscal year to March 2020 and has more than 27,500 FTE employees.
FM Logistic invests in innovation to offer supply chain services that answer changing consumer demands, the rise of e-commerce, omni-channel distribution and sustainability.
For more information on FM Logistic: https://www.fmlogistic.com/eng-gb
You can follow FM Logistic on Twitter at @FMLogistic
Phone: +84936 691 891
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Phone: +33 6 45 99 91 58