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Ready-built warehouses are transforming Vietnam’s supply chain

August 27, 2024 07:33 AM

Logistics here in Vietnam have been facing the revolution with the appearances and development of ready built warehouses. This type of warehouse in Vietnam is now bringing large changes to the supply chain, promoting economic development and enhancing the position of warehouse marketing in Vietnam and many other countries. 1. The boom of the e-commerce […]

Logistics here in Vietnam have been facing the revolution with the appearances and development of ready built warehouses. This type of warehouse in Vietnam is now bringing large changes to the supply chain, promoting economic development and enhancing the position of warehouse marketing in Vietnam and many other countries.

1. The boom of the e-commerce industry and the demand for storage

According to Statistic, the global e-commerce market value was nearly 4.9 trillion USD in 2023 and is expected to continue growing to nearly 6.4 trillion USD by 2024, with a compound annual growth rate (CAGR) of 14% during the period from 2021 to 2023.

E-commerce strongly growing around the world and in Vietnam particularly

E-commerce strongly growing around the world and in Vietnam particularly

In Vietnam, e-commerce is very vibrant. According to Mordor Intelligence, Vietnam’s e-commercial value is about 14.7 billion USD in the start of 2024, increased about 4 billion USD (increased 25%) compared to 2022, and predictably reached 23.77 billion USD in 2029, with the CAGR is about 10.099 in 2024-2029. Vietnam is considered to be one of the fastest growing e-commerce in Southeast Asia, with the total number of online buyers is predicted to rise from 51 million people in 2024 to 52 million people in 2027.

The outburst of e-commerce, leading to the rising demand for spaces to store products from businesses. In general, the need for a warehouse in Vietnam and particularly globally for marketing activities on the online Digital Marketplace, predicted to increase twice the number in the next 5 years. According to CBRE, the area occupied for warehouses in Vietnam will increase by 5 million m2 in the next 3 years. Some types of warehouses, modern with automatics and robots will be introduced and popularized to fulfill different requirements from many generals.

2. The emergence of ready-built warehouse in Vietnam

In the background of increasing e-commerce, the need for storing is increasing, the global supply chain is highly increased and a variety of products require a higher storing place. These challenges promote the development and needs for warehouses in Vietnam, following the concept of ready built, fulfilling high standards for safety, efficiency and flexibility.

The trend of warehouse in Vietnam follows the ready-built and modern model, introduced to suit many businesses’ requirements

The trend of warehouse in Vietnam follows the ready-built and modern model, introduced to suit many businesses’ requirements

2.1. Convenient location

Ready-built warehouses are typically located at strategic locations near major transportation routes, seaports, airports, and industrial zones. This helps minimize transportation costs and delivery times.

For example, GNP Nam Dinh Vu, currently owned by Gaw NP Industrial with ready-built warehouse projects in Vietnam, located in many locations near Van Don airport, Hai Phong Port, convenient for international shipments. Similarly, GNP Dong Van 3 with critical position near National Road 1A, Cau Gie – Ninh Binh Expressway, Hai Phong Port and Noi Bai International Airport, away from the capital city of Hanoi about 50 km.

Choosing warehouses in Vietnam which are located near highways and main traffic lines also help businesses to easily connect with other partners, customers and factories. Not only will it increase the shipment speed, it also reduces risks such as product losses or delays. Additionally, convenient locations enable businesses to easily access necessary labor, materials, and support services, contributing to operational optimization and increasing market competitiveness.

2.2. Saving time and investment costs

Choosing a ready-built warehouse in Vietnam brings many advantages such as time and money savings. Instead of investing from the start with many procedures and time wasting, businesses can rent or purchase a ready-built warehouse and operate immediately. This helps reduce costs from building and operating from the start and reducing waiting time.

In addition, ready-built warehouses are often equipped with advanced technologies and designed by highly skilled construction teams, enhancing operational efficiency and reducing maintenance and operating costs in the long term.

Warehouses with smart designs and utilize the space

Warehouses with smart designs and utilize the space

2.3. Flexibility and scalability

A ready-built warehouse in Vietnam offers flexible options in terms of size and design for businesses. These warehouse models can often be adjusted and customized to meet the specific needs of each enterprise. For instance, businesses can choose warehouses with large or small areas depending on the volume of goods to be stored. Some warehouses are even designed with expandable spaces, allowing businesses to easily increase storage capacity as needed without relocating or building additional facilities.

This expandability is particularly important in a constantly changing business environment, enabling companies to respond quickly to growth or changes in storage needs. Moreover, some ready-built warehouses are equipped with smart management technologies, optimizing the arrangement and retrieval of goods, enhancing operational efficiency, and reducing costs.

2.4. Safety and security

Ready-built warehouses are designed and constructed following high safety standards, ensuring security for stored products. These warehouses are usually equipped with modern fire protecting and preventing systems, 24/7 security cameras and other protecting methods to ensure the safety for products and employees.

Businesses can be relieved in the storing and operating processes, reducing the risk and loss which can happen. Nevertheless, these ready-built warehouses also fulfill the safety standards of the workplace, and play a role in keeping the health and safety of employees in these warehouses.

3. Impact of ready-built warehouses on the supply chain

3.1. Increase efficiency and distributing speed

Ready-built warehouses provide significant benefits in optimizing logistics processes, thereby enhancing supply chain efficiency. Strategically located a warehouse in Vietnam helps shorten transportation and distribution times, increasing the speed of goods circulation. The production process is improved due to easy access to labor and raw materials. Moreover, the adoption of smart and modern goods management methods in these warehouses helps optimize processes and reduce storage costs, thereby increasing revenue and lowering product prices.

Optimize procedures by using smart and modern products managing method in warehouse in Vietnam

Optimize procedures by using smart and modern products managing method in warehouse in Vietnam

3.2. Enhancing competitiveness

Ready-built warehouses allow businesses to flexibly operate storing areas depending on market fluctuation. With a critical position, warehouses help businesses to easily contact customers and the supply source, which then increases competitiveness.

Modern warehouse managing system and professionally managing service also contribute to increasing the quality of storing services and shipments, bring for the customers a good experience and improve the company’s image.

Effective manufacturing procedures, businesses can proudly compete with others

Effective manufacturing procedures, businesses can proudly compete with others

3.3. Promoting the development of the logistics industry

Not only help businesses to save time and costs, Vietnam warehouses model also promote Vietnamese supply chain development and promote economics growth:

  • Market expansion: They provide flexible and cost-effective storage solutions for businesses with attractive support policies, attracting many companies to join the supply chain, thereby expanding the logistics market.
  • Enhancing quality services: They encourage logistics service providers to improve service quality, adopt advanced technologies, and meet the diverse needs of customers.
  • Creating more job opportunities: They contribute to creating many job opportunities in the logistics sector, including warehouse management, warehouse operations, warehouse maintenance, and customer service.

Conclusion

Ready-built warehouses in Vietnam are revolutionizing the logistics industry. By offering modern, flexible, and efficient storage solutions, they not only help businesses optimize operations but also contribute to the sustainable development of the supply chain. The increasing presence of ready-built warehouses underscores their importance in enhancing competitiveness and driving economic growth in Vietnam in the context of global integration.

Businesses who need to rent a quality factory and warehouse in Vietnam, contact the Gaw NP Industrial expert team immediately at Hotline +84 789 75 77 88 for detailed consultation.

See more:

The future trajectory of ready-built warehouse developments in Vietnam

The significance of EDGE certification in industrial real estate

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