Cainiao P.A.T. Logistics Park in Long An, Việt Nam is set to support local SMEs in Q2 amid global supply chain disruptions.  The 110,000 square meters warehouse leasing space will provide services such as local distribution, supply chain management and export logistics 

Cainiao Network, the logistics arm of Alibaba Group, has announced its new Cainiao P.A.T. Logistics Park in Long An, Việt Nam will be ready for operation in the first half of 2022.

The launch of the 110,000 square meters warehousing leasing space comes as the country sees a surge in demand for local goods and a growing need for warehousing facilities.

Located in Ben Luc District, Long An Province, the Cainiao P.A.T. Logistics Park is at the intersection between Ng Huu Tri, 1A Highway and HCM-Trung Luong Highway.

Its strategic location offers direct access to the country's key business hubs: the Mekong Delta, which accounts for 20 per cent of the global rice trade, and Ho Chi Minh City, Việt Nam's economic centre.

With a variety of unit sizes spanning from 4,000 to 10,000 square meters, geographic positioning, and access to Cainiao's pioneering tracking service powered by technology, the logistics park provides efficient and cost-effective storage and shipping solutions for Việt Nam's SMEs.  

Việt Nam is home to 800,000 enterprises, of which 97 per cent are small to medium-sized enterprises.

With increased local and global demand for made-in-Việt Nam goods and a thriving eCommerce market, SMEs across the country are experiencing a much-welcomed business boom. This translated to surging demand for warehousing facilities in Vietnam in recent years.

Today, demand is further fuelled by logistics and supply chain disruptions, limited container shipping space and road congestions affecting truck transportation, causing many businesses to adapt their supply chain practices to focus on expanding and diversifying their inventories and warehouse space.

"At Cainiao, we are committed to supporting local businesses, particularly small and medium-sized enterprises, with an efficient and comprehensive logistics network that can lower trade barriers, allowing them to tap on overseas market opportunities and access a wider consumer base,"  said Eric Xu, general manager of Cainiao Smart Hub.

"The launch of Cainiao's logistics park in Long An is very timely and we believe it will play an instrumental role in mitigating supply chain disruptions by providing the optimum warehousing facility to strengthen businesses' inventory management strategy."

In tandem, trade is undergoing a structural shift from traditional sales channels to eCommerce platforms, which is a driving force for the shift to smarter logistics facilities and services. eCommerce companies require more space than brick-and-mortar retailers, as they operate with larger inventory levels and higher volumes of products, as well as needing additional space for returned goods.

As a result, JLL Vietnam predicts warehouse demand will grow three times faster than the rate of eCommerce growth — leading to an increased need for efficient large-scale warehousing solutions like the Cainiao P.A.T. Logistics Park.

For leasing enquiries, 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 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.

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.