Hanoi, Vietnam, Nov. 4, 2020 – Logistics provider FM Logistic has been awarded a contract from 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 Vietnam’s myriad of small independent stores and large consumer goods companies.
Under the agreement, FM Logistic will use its warehouse and distribution centre at Băc Ninh, near Hanoi, to store and prepare goods for delivery to retail stores across northern Vietnam. Inaugurated in May 2020, the US$ 30 million logistics centre will handle fast-moving consumer goods, such as ambient food, drinks, home and personal care products.
According to a 2020 Deloitte study (The Vietnam Consumer Survey. An accelerating momentum), Vietnam’s retail sector experienced a growth rate of 11% between 2013 and 2018. Although ecommerce and organised retail are rising quickly, small independent stores continue to dominate the Vietnamese 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,” said Nguyen Tran Thi, VinShop’s Logistics Director. “Therefore, a strategic partnership with FM Logistic will aggregate value to VinShop’s business by leveraging FM Logistics’ advanced resources and operating capabilities, along with ensuring an increase in the supply chain productivity and optimizing costs in the stages.”
“The Vietnamese market holds tremendous potential for retailers but competition is fierce,” said Hamza Harti, FM Logistic’s country managing director for Vietnam. “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.”
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.
About VinShop
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 and 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 and 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.
Media contacts:
VinShop
Van Nguyen
Phone: +84936 691 891
FM Logistic
Cyrille Gibot
Phone: +33 6 45 99 91 58