The facility will provide 52,000 sqm of storage space with a capacity of 70,000 pallets. © FM Logistic
The facility will provide 52,000 sqm of storage space with a capacity of 70,000 pallets. © FM Logistic

FM Logistic to build $30m distribution centre in Vietnam

17 April 2019

An international logistics company is expanding operations in Vietnam to meet fast-growing demand in the outsourced logistics market.

FM Logistic, headquartered in France, last week began construction of a new $30m warehouse and distribution centre in the northern province of Bac Ninh, 20km from Vietnam’s capital, Hanoi.

The facility will provide 52,000 sqm of storage space with a capacity of 70,000 pallets, producing employment for around 300 people. Services offered include storage, handling, co-packing and distribution. FM Logistic intends to complete the first phase of 21,000 sqm in Spring 2020.

“It will also increase FM Logistic’s warehousing space in Vietnam almost tenfold, at a moment when Class-A warehousing is in high demand,” said Hamza Harti, country managing director for Vietnam, FM Logistic.

Increased domestic manufacturing, combined with a rise in wages and consumption driven by the young population and growing e-commerce market, have opened opportunities for international logistics specialists to invest in the fast-growing Vietnamese market, say FM Logistic.

NG Concept, a subsidiary of FM Group, has designed the facility with the ability to store temperature-sensitive products, fast-moving consumer goods, electronic appliances, spare parts and hazardous products. The building will be environmentally sustainable and energy efficient, as certified under the Leadership in Energy and Environmental Design.

A client of FM Logistics, Vuong Le Minh, supply chain senior manager at Brenntag, a global chemical distribution company said: “The new distribution centre will provide us with more space to absorb our important growth. After one year of collaboration with FM Logistic in Bac Ninh, we’ve decided to expand the cooperation to temperature-controlled products."

The Bac Ninh warehouse and distribution centre is designed to support the development of food, retail, FMCG, industrial and cosmetics companies in the booming Vietnamese market, according to Harti. Meanwhile, the company began renting a 6,500 sqm warehouse last month in An Phu, Binh Duong, in the southeast region of Vietnam.

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