French logistics giant opens second distribution center in Vietnam

French logistics giant FM Logistic inaugurated its second Vietnam distribution center in the southern province of Binh Duong on Thursday.

The contract logistics provider said it was strengthening its omnichannel fulfillment capabilities in Vietnam with the opening of the new distribution center at the VSIP II Industrial Park.

The facility, located 43 km from downtown Ho Chi Minh City, provides cutting-edge warehousing, handling, co-packing, distribution and e-commerce services. It will serve multiple customers simultaneously while mutualizing space and resources to meet demand fluctuations.

Over three phases of construction, the facility will allow FM Logistic customers to scale their operations while securing their growth within the same facility.

“This grand opening marks a significant milestone in our commitment to providing superior logistics solutions to our esteemed clients in the region. The facility boasts state-of-the-art infrastructure, modern technologies and a customer-centric approach that will elevate the efficiency and reliability of sustainable omnichannel supply chains for our clients," said Jean-Christophe Machet, global CEO of FM Logistic.

Spread across 20,000 square meters and expandable up to 50,000 square meters, FM Logistic Vietnam’s new warehousing facility is equipped with 78 docks and furnished with best-in-class safety and security features, providing cost-efficient, quality storage, handling, and distribution services.

The firm said that with sustainability put at the heart of its operations, the facility includes green features like energy generation through solar panels, a water treatment plant, rainwater harvesting, pebble mulching for water conservation, and sensory LED lighting.

Hamza Harti, managing director of FM Logistic Vietnam, said at the inauguration: “Embracing innovation at its core, our facility proudly harnesses our warehouse management system with advanced inventory management technology. Through this integration, we enable the dynamic orchestration of operations in real time, setting new standards for efficiency and quality in the industry.

"Our warehouse stands as a testament to scalability, offering businesses the agility to tailor their storage requirements to their business expansion."

Harti told The Investor that the group has invested about $50 million in Vietnam to date, half of it in the new facility. In 2019, the group had built a distribution center in the northern province of Bac Ninh.

"In the next three years, FM Logistic wants to become one of the top three logistics service providers in Vietnam," he said.

Harti noted that Binh Duong was one of Vietnam's fastest-growing industrial and manufacturing hubs, hosting numerous industrial parks and manufacturing zones. This made it an ideal location for a warehouse to take part in an industrial ecosystem.

"The presence of various industrial clusters, including electronics, textiles and fast-moving consumer goods creates opportunities for synergies and partnerships among businesses," he added.

The province was also well-connected to major ports and airports, including Cat Lai Port and Tan Son Nhat International Airport, allowing for streamlined import and export operations.

Harti said Vietnam has emerged as a strong contender to become a major hub for regional distribution centers in the Asia-Pacific region. With its strategic location, growing infrastructure and competitive labor and operating costs, the country offers attractive opportunities for businesses looking to establish or expand their operations in Asia.

Vietnam's long-standing trade heritage and dynamic trade relations with neighboring countries further enhance its position as a prominent logistics hub in Asia, he said.

FM Logistic Vietnam is a 100%-owned subsidiary of FM Logistic Group with regional headquarters in Singapore. The group officially began its Vietnam operations in August 2017. In 2018, the company began providing shipping services nationwide, using a network of partners.

Founded in France in 1967, the family-owned FM Logistic is a leading supply chain service company, serving customers in the FMCG, retail, beauty-cosmetics, industrial manufacturing, and healthcare industries. Its services include warehousing, omnichannel fulfilment, co-packing, domestic and international transport, urban logistics operations and supply chain control tower services. The group is active across Europe, Asia, and Latin America.