DHL Supply Chain has unveiled a two-year plan to invest EUR10 million (US$13 million) in new facilities, IT systems support, transport fleet, and workforce in Vietnam to further expand its business in the country.
The company also announced the building of a second 10,000-square-meter distribution center in Bac Ninh, North Vietnam, that is due for completion in the third quarter of 2013.
The EUR10 million investment in Vietnam will see a more than 50 percent increase in DHL Supply Chain’s warehouse space by 2015—from the present 91,000 square meters to over 141,000 square meters.
DHL Supply Chain Vietnam also plans to expand its transportation fleet by over 160 percent by deploying more than 100 vehicles in the next two years. Additionally, investments will be put into more advanced IT systems support that includes warehouse, transport, spare parts logistics, and other value-added management systems.
On the staff side, workforce strength will grow by over 170 percent, and by 2015 DHL Supply Chain will have over 2,200 people in its local operations.
Meanwhile, once operational in the third quarter of 2013, the new distribution center in Bac Ninh province will complement the company’s existing 20,000-square-meter facility in the area and cater to the bespoke needs of the consumer, retail, and technology industries.
DHL Supply Chain is also upgrading its Hanoi office from mainly providing support operations to taking full-fledged responsibility for the whole northern region of Vietnam.
“Our investments over the next few years will allow us to further grow in tandem with the country’s progress and offer first-rate services for both global and local customers alike,” said Jan Willem Winkelhuijzen, DHL Supply Chain’s country manager for Vietnam.
On the other hand, freight and logistics company Logwin has opened a new warehouse complex close to Hanoi to serve the northern part of Vietnam.
The state-of-the-art facility is comprised of 5,200 square meters of bonded warehousing, long-term storage, and an area for specialist logistics services for fashion industry customers. It is located less than 30 minutes by road from Vietnam’s capital city and is close to the international airport at Noi Bai and the Haiphong international seaport.
“The new logistics and warehousing facility is driven by growth in demand from our customers in Vietnam as the economy continues to grow and the export manufacturing sector develops. Manufacturers now actively look at leveraging the lower land and labour costs in Vietnam,” said Maik Juengst, country director for Vietnam at Logwin.
The company has facilities in the northern, central, and southern regions of Vietnam, close to major manufacturing centers. These include a 2,000-square-meter container freight station in Haiphong and a warehouse CFS center In Ho Chi Minh City.
Photo courtesy of DHL