Other new tenants include international and local leading brands such as TH true Milk, N Kid and Kohnan Japan

Accessibility and quality of the logistics park are two key deciding factors for the new tenants to achieve a more diversified and cost-efficient supply chain management strategy

Businesses and consumers will benefit from superior logistics services from OOCL Logistics via Cainiao P.A.T. Logistics Park

LONG AN - Cainiao Network (Cainiao), the logistics arm of Alibaba Group Holding Limited, announced new tenants for its newly-operational Cainiao P.A.T Logistics Park in Long An, Việt Nam.

Global logistics and supply chain provider OOCL Logistics has recently signed warehousing leases with Cainiao to leverage its logistics park. OOCL Logistics will manage the facility for their clients, namely the leading dairy manufacturer in Vietnam - TH true Milk, Vietnam's leading kids' toy brand – N Kid and Japanese retailer – Kohnan Japan. The onboarding of industry leaders is a nod to the park's premium accessibility and quality, with the two newest tenants aiming to improve their business diversification and implement a more cost-efficient supply chain management in the region.

Cainiao P.A.T. Logistics Park in Long An, Vietnam

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To help businesses remain future-ready by capturing growth opportunities and staying ahead of the next big wave, Cainiao selected Long An as the first province to establish its premium warehouse facility in Vietnam. This is primarily based on two key factors that will be pivotal to establishing its tenants' business competitiveness and long-term operations in the region, namely the accessibility and quality of the facility.

Accessibility has a direct impact on logistics operations efficiency and business profitability. A strategically located warehouse with modern specifications improves overall logistics operations costs and, more importantly, reduces lead time in supply chain management.

Entrance of Cainiao P.A.T Logistics Park

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As a world-class logistics and supply chain service provider with an extensive network spanning 50 countries and regions, OOCL Logistics has recognized the Park's strategic location and quality facility as compelling factors to weave Long An into its warehousing network. OOCL Logistics has since shifted its warehousing away from Ho Chi Minh city as part of its upgrade, diversification and cost-efficiency management strategy. In turn, OOCL Logistics will be leveraging the facility to benefit its customers – TH true Milk, N Kid and Kohnan Japan, via a more cost-efficient and agile supply chain strategy, with logistics solutions such as warehousing, operation and transportation.

"As a global company based in Asia, OOCL Logistics is exceptionally positioned to serve international and domestic customers. Here in Việt Nam, we aim to uphold our position as a leader in providing sophisticated transportation, warehousing and distribution services. Utilizing this warehousing space has enabled us to help other businesses to operate and manage their storage needs in the country as well as in the region," said Mr Son, General Manager of OOCL Logistics Vietnam

Inside the Cainiao P.A.T Logistics Park

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TH true Milk, a leading dairy manufacturer in Vietnam, has also selected Cainiao P.A.T. Logistics Park after an open and formal Request For Quote (RFQ) tender process, largely due to the flexibility and accessibility that the facility offers. This is a huge nod of confidence to the facility's role in upholding TH true Milk's quality and standards by reinforcing its supply chain management approach.

Tenants OOCL Logistics and TH true Milk in Cainiao P.A.T. Logistics Park

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In addition, Kohnan Japan, the leading home centre in Japan established in Vietnam in 2016, has also selected Cainiao's facility for its warehousing needs. With a focus on delivering a quality lifestyle to its customers, Kohnan will tap into the logistics park to uphold superior product standards and better serve customers in the market.

"Traditionally, typical warehousing locations in Southern Vietnam are witnessing increasing saturation, with higher leasing costs. In addition, there are limited warehouse suppliers and land space to cater to future expansion needs. These limitations add further stress to the already stretched supply chain if the business needs to pivot or expand shortly," said Xing Zhang, General Manager for Vietnam at Cainiao Smart Hub.

Xing added: "Our new tenants comprising international and local leading businesses have recognized the strategic importance of Long An and how a diverse warehousing strategy will improve their long-term resilience in the post-pandemic era. This is in line with industry trends as 92 per cent of senior global supply chain executives have made physical changes to their supply chain, and we are seeing businesses increasingly shift to a 'just-in-case' supply chain management approach to ensure more than sufficient inventory is available in the market. This revised approach brought to light the importance of warehousing solutions that are cost-effective and highly scalable, yet able to fit seamlessly into the broader supply chain flow via superior land, air, and sea connectivity."

Launched in the second quarter of this year, Cainiao's 110,000-square meter Cainiao P.A.T. Logistics Park is strategically located in Long An province, which has direct access to Southern Vietnam's key business hubs, including HCM City, Bình Dương Province, Đồng Nai Province, and the Mekong Delta – a coverage area of more than 35 million people.

Cainiao's 110,000-square meter Cainiao P.A.T. Logistics Park

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Its strategic location minimizes logistics bottlenecks due to road traffic and accidents with three-way access at the intersection of Ng Huu Tri, 1A Highway, and HCM-Trung Luong Highway. Additionally, the under-construction Ben-Luc–Long Thanh Highway Express Road is anticipated to enhance accessibility to Long Thanh International Airport and the Cain Mep Thi Vai Port.

In addition, Vietnam is well-positioned to give logistics players a competitive edge as it is a party to 15 different regional and global trade agreements. Vietnam is a member of the ASEAN Free Trade Area (AFTA), EU-Vietnam Free Trade Agreement (EVFTA), Comprehensive and Progressive Agreement for Trans-Pacific (CPTPP) with ten markets (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru and Singapore), Regional Comprehensive Economic Partnership (RCEP), and the UK-Vietnam Free Trade Agreement (UKVFTA). Vietnam is also undergoing free trade negotiations with the EFTA countries (Norway, Iceland, Liechtenstein, and Switzerland).

For leasing inquiries, businesses can reach out to Kathy Nguyen at +84 866 78 78 60 or leasing.vn@cainiao.com.

About Cainiao Network

Founded in 2013, Cainiao Network (Cainiao) is a smart logistics company and the logistics arm of Alibaba Group. As part of its commitment to creating customer value, it adopts a collaborative approach to logistics that aims to improve efficiency and customer experience for all players along the supply chain. In addition, it carries forward Alibaba's mission of making it easy to do business anywhere by aiming to deliver anywhere in China within 24 hours and across the globe within 72 hours.

For further information, visit  https://www.cainiao.com/en/index.html