VIETNAM NATIONAL UNIVERSITY OF HCMC

INTERNATIONAL UNIVERSITY

SCHOOL OF INDUSTRIAL ENGINEERING AND

MANAGEMENT

GROUP PROJECT – WAREHOUSE IN ĐÀ NẴNG

SUBJECT: WAREHOUSE ENGINEERING MANAGEMENT
Lecturer: Assoc. Prof. Dr. Ho Thi Thu Hoa
Class: IELS20IU21
Course: 2022- 2023
GROUP 10

Vũ Thùy Trang IELSIU20447

Phan Bửu Văn IELSIU19308

Nguyễn Minh Tuấn IELSIU20080

Bùi Ngọc Trâm IELSIU20178

Trần Cao Trí IELSIU20187

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TABLE OF CONTENT

1. WAREHOUSE DATABASE ............................................................................................... 4

1.1. MAP OF INDUSTRIAL ZONE ...................................................................................... 4
1.2. COLD WAREHOUSE .................................................................................................... 4
1.3. OTHER WAREHOUSE ................................................................................................. 5
2. WAREHOUSE ACTIVITIES IN VINCONSHIP DANANG ........................................... 8
2.1. LOCATION .................................................................................................................... 9
2.1.1 ADVANTAGES ............................................................................................................ 9
2.1.2 DISADVANTAGES ..................................................................................................... 9
2.2. SERVICE AND EQUIPMENT: ..................................................................................... 9
2.2.1. Warehouse Exploitation .............................................................................................. 9
2.2.2. Exploitation of Container:........................................................................................... 9
2.2.3. Container shipping agent: ......................................................................................... 10
2.2.4. Customs Brokerage: .................................................................................................. 10
2.2.5. Container Repair and Lease: ..................................................................................... 10
2.3. LAYOUT ...................................................................................................................... 11
2.4. CHALLENGES ............................................................................................................ 11
2.5. OPPORTUNITIES ........................................................................................................ 11
3. IMPACTS AND OPPORTUNITIES OF COVID 19 TO VIỆT NAM WAREHOUSE 12
3.1. IMPACT ....................................................................................................................... 12
3.1.1. The shortage of storage space and cold warehouses. ................................................ 12
3.1.2. Unavailability of the workforce due to Covid 19. .................................................... 13
3.1.3. Pressure from customers to cut costs. ....................................................................... 13
3.1.4. The shortage of shipping containers and shipping fees increase. ............................. 14
3.2. OPPORTUNITIES FOR THE WAREHOUSE SECTOR ............................................ 14
3.2.1. Automated Warehouse Technology ........................................................................ 14
3.2.3. Partner with Third-Party Logistics (3PL) ............................................................... 16
3.2.4. E-commerce warehousing ....................................................................................... 17
3.2.5. The development of cold warehouse ...................................................................... 17
4. REFERENCE ...................................................................................................................... 18
5. CONTRIBUTION FORM ................................................................................................. 19

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TABLE OF FIGURE
Figure 1: Map of Da Nang industrial zone ..................................................................................... 4
Figure 2: Cold warehouse in Da Nang ............................................................................................ 5
Figure 3: Warehouse database ........................................................................................................ 6
Figure 4: Warehouse database ........................................................................................................ 7
Figure 5: Department of Central Container Joint Stock Company ................................................ 8

WAREHOUSE DATABASE EXCEL FILE:

WHS Database - Đà Nẵng .xlsx

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1. WAREHOUSE DATABASE
1.1. MAP OF INDUSTRIAL ZONE
Da Nang city currently has 06 main
industrial zones including Da Nang Industrial
Park, Hoa Khanh Industrial Park, Expanded
Hoa Khanh Industrial Park, Lien Chieu
Industrial Park, Hoa Cam Industrial Park, and
Da Nang Fisheries Service Area with a total
land area. more than 1,160.18ha located in
very convenient locations. Some of the
investment sectors of these industrial zones
are biotechnology for health, agriculture, and
fisheries, producing construction materials,
port logistics services, bonded warehouses,
technology, etc.
Figure 1: Map of Da Nang industrial zone
Most of the warehouses in Da Nang
are located in industrial areas. These industry
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zones are in favorable geographical locations
since the distance from the industrial areas to
Danang International Airport, Tien Sa Port,
and Danang Sea Port are all less than 15
kilometers. Furthermore, 1A Highway also
crosses the industrial parks. Therefore, the
warehouses located in the industrial parts
take advantage of others in terms of speed,
accessibility of infrastructure workforce, and
effective transportation and communication.
1.2. COLD WAREHOUSE
One of the primary assets of Da Nang's
maritime industry is the exploitation and
processing of seafood, with an annual
capacity of 150 to 200 thousand tons. Fishery
logistics service facilities are being built at
the same time, efficiently supporting not only
local fishermen but also the entire Central
area. Therefore, with a great demand for fresh
seafood preservation, many warehouses in
Danang provide cold warehouse services for
clients. Most of the cold warehouses are
located near the seaside or near 1A Highway.
They are beneficial locations in
transportation and communication between
parties.
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Figure 2: Cold warehouse in Da Nang
In this project, we found three
vendors providing cold warehouse services
and representing others in Danang. They are
Danang Warehouse of Pro ship Joint-stock
Company, Vinatrans Danang Logistics
Center of Vinatrans Danang - International
Freight Forwarders, and Seadanang cold
warehouse of Central Region Seafood
Import-Export Joint Stock Company. Those
warehouses provide essential equipment and
facilities such as racking for pallets, carton
storage, forklifts, and refrigerated equipment.
Generally, these cold warehouses provide
two main services: cold storage and freezing
storage. The cold storage’s temperature is
from 8°C to 0°C and its services can be used
for storing agricultural products such as
vegetables and fruits or seafood and meat.
Meanwhile, the freezing storage service’s
temperature is about -18°C to -25°C and it is
used for storing frozen foods like ice cream,
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butter, cheese, or ready-to-cook meals.
Furthermore, there are some specific
products that need to be stored in required
cold temperatures like vaccines, medicines,
cosmetics, biopharmaceutical products, and
so on. The main target customers of these
warehouses are third-party logistics
providers, who will store or ship goods on
behalf of a producer, stockists of drugs, and
fishermen that have tons of seafood to be
exported or delivered.
1.3. OTHER WAREHOUSE
As Da Nang is one of the economic
central cities, the need for a good logistics
operation is indisputably enormous. This
leads to a considerable amount of warehouses
built throughout the city. The majority of it is
located in the industrial zones, the remaining
are scattered around Da Nang, for private use.
The warehouses come in various areas, from
a few hundred to a thousand meters, most of
which have built-in infrastructures like
cameras, electricity, water, and transportation
like cranes and trucks to meet the security and
quality demands of customers.
The logistics services providers also
provide many more services aside from
warehouses for rent. For example, they could
help in preparing various border declarations
so that the cargo could be exported/imported
smoothly. They also have shipping cargo
services, distributing goods by truck and
container, checking inventory, and weighing
the goods. Lastly, some companies have a
stand-out service, which is building a
customized warehouse, so the warehouse can
be used to store specific products like gas,
and chemicals which could be dangerous
when stored in normal conditions.
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Figure 3: Warehouse database

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Figure 4: Warehouse database

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2. WAREHOUSE ACTIVITIES IN VINCONSHIP DANANG

Central Container Joint Stock Company (Viconship Da Nang) is one of the prestigious logistics
service providers of VICONSHIP Group leading in the field of port services and logistics in
Vietnam.
With more than 60 dedicated container tractors and more than 60,000 m2 of warehousing area,
they provide customers with all the overall logistics solutions from warehousing services,
international freight forwarding services, import and export freight forwarding, and a nationwide
transportation network.
VICONSHIP has 9 distinct companies spread across Vietnam, including VICONSHIP Ha Noi, Da
Nang, Quy Nhon, Ho Chi Minh, Green Star Lines, Greenport, Green Logistics Center, VIP
Greenport, G.I.C Logistics. Da Nang VICONSHIP is one of the company's major divisions.

Figure 5: Department of Central Container Joint Stock Company

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2.1. LOCATION
Central Container Joint Stock Company
Address: No. 75 Quang Trung, Hai Chau
District, Da Nang City
Phone: (84-236) 3822 922 Fax: (84-236)
3826 111
Email: viconshipdanang@viconship.com
2.1.1 ADVANTAGES
VINCONSHIP Da Nang has a fortunate
geographical location.
It is located in the heart of the Central Key
Economic Region, it serves as the gateway to
the East-West Economic Corridor, which
connects Laos, Thailand, Myanmar, and,
more recently, Malaysia and Singapore. Da
Nang is making significant efforts to develop
logistics services and infrastructure.
The location of VICONSHIP ĐÀ NẴNG
will specifically cater to a large number of
local and international consumers, being easy
to extract and transport due to its location in
a port city, and having a vast space, enabling
a flawless warehouse process.
With the current trend of favorable goods
trade, large fleets of ships arriving at the port
more and more, coupled with increasing
demand, Da Nang's task is to establish a new
seaport hub. When Tien Sa port is directed to
become a tourist port, service quality is
required on a modern scale to fulfill the
increasing demands of information
technology.
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2.1.2 DISADVANTAGES:
Despite its advantageous location in Da
Nang, where logistics departments and
supply networks are undeniably favorable.
Being surrounded by competitors such as
Transimex, Portserco, Vien Duong,
Saigonship, VOSA Da Nang, Dai Duong, Hai
Khanh, Nhat Phong Van, and PST Da Nang,
VICONSHIP has to fight to secure the
number of its clients while also spending a lot
of money on labor cost. If the company fails
to maintain a consistent number of consumers
over time, rival companies may reject them in
the quest to be the most dependable
alternative for customers.
2.2. SERVICE AND EQUIPMENT:
2.2.1. Warehouse Exploitation
Warehousing and warehousing services are
activities developed and operated by
VICONSHIP since 2012. Currently,
VICONSHIP is operating a large warehouse
in Da Nang province with an area of
approximately 100000 m2. With high-quality
services, VICONSHIP's warehousing system
has special licenses for CFS warehouses,
bonded warehouses, and import-export
activities.
CFS warehouse service is provided by
VICONSHIP with a total area of up to 15,050
m2. This service has been developed since
2013. The warehouse is built and equipped
with modern facilities, software, security
camera systems, and fire protection.
Viconship Da Nang is ready to meet all
customers' needs in terms of warehousing,
transportation, and distribution of goods
through the national transportation system.
2.2.2. Exploitation of Container:
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With modern packaging and loading and
unloading lines, professional management
methods, and safe terrain, Viconship Da
Nang Container Terminal (with an area of
nearly 50,000m2) manages container cargo
for most major shipping lines operating in
Vietnam. With many years of experience in
warehousing services, Viconship Warehouse
is responsible for the closing and
warehousing of all kinds of containers, iron
and steel, chemical and petroleum
equipment, transporting this equipment from
ship to warehouse and vice versa.
2.2.3. Container shipping agent:
When ships enter the port, they follow
government procedures as a shipping agent
on behalf of shipping lines and operators.
Carry out loading, unloading, and freight
forwarding with ships, as well as providing
goods and services agents, cargo loading and
unloading, loading and unloading
procedures, and fresh water and food supply
services. Ship products and crew
accommodations, maritime inspection, ship
repair services, and so on... As marine
brokers, they represent charterers and ship
owners when signing charter contracts by
time or trip.
Viconship Da Nang provides all necessary
transportation services to transport goods
between Vietnam and every corner of the
world by land, sea, and rail.
The company has specialized container
transport vehicles capable of transporting all
regions of Vietnam and transporting goods
without restrictions in width, and size. The
use of specialized vehicles and a team of
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highly skilled drivers have given the
company a solid reputation.
2.2.4. Customs Brokerage:
Viconship Da Nang offers a comprehensive
monitoring system, as well as container
logistics, arrangement, inland transportation,
maintenance, repair, and rental services. The
company is a transportation pioneer thanks to
its fleet of vehicles. Containers, the
organization has specialized vehicles for
delivering Containers that are capable of
transporting throughout Vietnam and to
consumers. The size, width, and length of the
goods are not restricted. The company's
reputation has been built on the utilization of
specialized vehicles and a staff of competent
drivers. This is a rigorous job that
necessitates safety and expediency when
connecting maritime and land channels.
With a staff of skilled experts in declaring
customs procedures on imports and exports
through seaports and inland customs
clearance locations to ensure that import and
export shipments will be handled
professionally, efficiently, and quickly. Their
employees are always up to date with new
documents daily from Vietnam Customs and
ensure timely declaration and compliance
with government regulations.
2.2.5. Container Repair and Lease:
With a good team of IICL-certified staff, they
meet all the requirements based on MNR
standards.
The repair, protection, and packaging that is
completed must include all vehicle inspection
fees and repair fees, total losses of the
mysterious loss of goods, and construction
damages.
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2.3. LAYOUT
The layout is a key component in determining
the productivity and throughput levels of a
warehouse. The layout design is the process
of allocating both the internal and external
spaces of the premises to be used for the
operation of the warehouse. Designing an
efficient and optimal layout will have a major
impact on the flow of the entire logistics
system, meaning these are extremely
complex tasks to determine how the layout
should be organized.
The layout should reflect the most functional
way to manage physical stock and inventory
in the warehouse. With CFS Viconship Da
Nang, the layout will focus on automated
facilities, security systems, and information
system management. The height of the
warehouse is also an important parameter that
affects the storage space, and the size of the
shelves. Viconship Da Nang CFS warehouse
is 12 meters high with a ceiling system for
light circulation and ventilation. Ceiling
material is required to insulate heat and
sound. There are 37 gates constructed with
infrared sensors to recognize the entering and
leaving activities. In the warehouse area, 5
offices are built to manage the technology
system. The information system usually
updates the new data and the real situation in
the warehouse which is important to find out
problems and solve them immediately.
Additionally, modern security systems such
as CCTV supervisors are distributed on every
corner in warehouses and provide high-
quality images. The rack is single-deep to
optimize picking and retrieving unit loads.
There are 17 forklifts and 30 hand pallet
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trucks to transport the cargoes in the
warehouse.
2.4. CHALLENGES
Digitalization in the logistics process is one
of the vital elements to satisfying customer
demand more effectively. As a result,
upgrading the warehouse management
system and investing in warehouse facilities
are essential for smoothing the process.
However, Viconship Da Nang has a poor
oversea investment to automate the
warehouse activities, which is the big
challenge not only Viconship has faced but
also mostly warehouse and container yards in
Vietnam. Additionally, labor cost is one of
the considerable issues, which decides the
productive level of the whole system. Since
Viconship has to improve its warehouse
operation, the labor cost increased to meet the
demand. To maintain the labor cost but also
boost the throughput level of the warehouse,
Viconship should consider digitalization in
both facilities and management information
systems.
2.5. OPPORTUNITIES
Viconship tends to innovate the equipment
and system to aim for the goal of being an
eco-friendly company. To reach a sustainable
logistics firm, Viconship pays attention to
environmental problems due to transport and
warehouse activities. The organization
focuses on solutions to reduce pollutants and
save energy through the operating process.
Viconship makes a commitment to following
the law of collecting and treating hazardous
waste in accordance with regulations.
Da Nang is one of the most potential
provinces to invest in logistics and port
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development. Some investors make the
decision to develop the logistic center in Da
Nang since this is the strategic location
connecting the North and the South area of
3. IMPACTS AND OPPORTUNITIES
OF COVID 19 TO VIỆT NAM
WAREHOUSE
The Covid-19 pandemic, which broke out at
the end of January 2020, caused heavy
economic, cultural, social, and human life
losses around the world. COVID-19's spread
has placed a twist on global supply chains,
making it impossible for businesses to
anticipate and analyze risks. Clearly, supply
chains in every country, including Vietnam,
and across all economic sectors have been
severely impacted. In recent years, Logistics
has established itself as a major economic
service industry by assisting import-export
enterprises, carrying goods to the domestic
market, and especially serving commodities
during social distancing. The pandemic has
put heavy pressure on global production
capacity and supply chains, and it has also
opened up new avenues for the logistics
industry to develop. In this report, we focus
on analyzing the difficulties, challenges, and
opportunities of the pandemic in terms of the
warehouse sector in Việt Nam.
3.1. IMPACT
3.1.1. The shortage of storage space and
cold warehouses.
Due to an overabundance of commodities and
the spread of Covid 19, warehousing and
logistics services experience a shortage of
storage space and cold warehouses.
The difficult issue around the Covid-19
infection has had a strong influence on
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Vietnam. Viconship will take advantage of
this opportunity to develop and expand the
scale of the warehouse and container yard.
product consumption: fruits and vegetables,
dairy, seafood, processed food, and medicine.
Currently, the demand for cold storage has
increased a lot because the consumption of
imported food items such as meat and fruit
has slowed down because of the Covid-19
epidemic. As for domestically produced
products such as seafood, which are also
affected by the Covid epidemic, they cannot
be exported. Therefore, the demand for cold
storage to store goods has increased
dramatically recently.
According to MARD statistics, the country
now has 48 cold storage serving agricultural
and aquatic products with a capacity of
around 700,000 pallets and thousands more
cold storage with an estimated total storage
capacity of about 700,000 pallets. 2 million
tons of goods destined for specific markets
(mainly for export). As a result, the current
cold storage capacity is insufficient to meet
the needs of agricultural and aquatic product
preservation although most service cold
storage operates at over 90% capacity. Many
cold storages have been consistently
overburdened since the epidemic's fourth
outbreak, often operating at more than 110
percent of capacity.
From the beginning of 2020, when the
COVID-19 epidemic broke out, the Chinese
side blocked the auxiliary border gates,
allowing only customs passage through the
international border gate, the main border
gate. As a result, border gate customs
clearing capacity is still not entirely
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recovered; it is unable to meet the growing
volume of customs clearance goods,
particularly during the harvest season of
some agricultural products and fresh fruits for
export from Vietnam.
Cold storage capacity has not kept up with
demand in the seafood export sector so when
the Covid-19 epidemic hit, the warehouse
shortage became even worse, affecting export
and storage operations. Seafood takes up the
most space in cold storage. Our country's
seafood processing companies, despite being
ranked third in the world in terms of seafood
export, can only meet a portion of the demand
for cold grapes. Because of the rising logistic
cost, seafood products have lost their
competitive advantage in comparison to
regional Asian countries. Moreover, 30-50
percent of seafood export orders were
canceled during the Covid-19 peak period,
resulting in higher stockpiles. Cold storage
facilities have to operate at full capacity.
3.1.2. Unavailability of the workforce
due to Covid 19.
Vietnamese logistics enterprises are facing a
shortage of professional staff and well-
trained workers in the field of logistics
services. In addition, with the spread of the
Covid 19 epidemic, the lack of manpower is
the most affected issue. Due to the rapid
spread of the disease and fluctuations after
the Lunar New Year, the warehousing
industry is facing a labor crisis. Many
workers have to quit their jobs because they
are under the F0 and F1 categories (requiring
treatment and isolation due to the COVID-19
epidemic), which has had a greater impact on
the production activities of the warehouse.
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According to a survey conducted by Vietnam
Report, currently, about 54% of logistics
businesses exist. The COVID-19 pandemic,
especially the fourth outbreak, which
included periods of social isolation and
severe disruption, has caused severe labor
shortages. According to data, about 1.3
million workers from Ho Chi Minh City
moved to the southern provinces after the
epidemic.
According to a poll conducted by Vietnam
Report, the workforce of about 40% of
enterprises in the industry has shrunk since
the epidemic began in 2019. Vietnam
Logistics Business Association (VLA) It is
estimated that this has cost transport
companies at least VND 100 billion per day.
When the demand for goods increases,
especially in the last months of 2021 and the
beginning of 2022, a large amount of labor
will be required to restore production,
especially in the Southern major economic
districts. This is not a small problem for
businesses in the industry. Besides, to
minimize the impact of the shortage of
human resources during the epidemic season,
some companies allow workers to isolate
themselves at the company and work in the
company. This, in part, provides a source of
income for workers during the epidemic
season, and at the same time helps the
company maintain production. However, the
lack of human resources has caused logistics
enterprises or warehouse operations to fall
into a serious crisis.
3.1.3. Pressure from customers to cut
costs.
Staff reduction appears to be the first solution
that businesses consider when encountering
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difficulties and challenges in the context of
the storm Covid-19 epidemic. Businesses cut
production costs, manpower costs, and
employee costs that are unnecessary.
Businesses cut unnecessary departments to
instead focus on supporting drug money
when employees are infected. Many
businesses went bankrupt in 2021 and 2022
as a result of long-term economic pressures
because of the rising price of warehouses, and
the rising shipping cost. As a result of the
excessively increased freight rates, many
businesses are unable to pay for warehousing
and transportation, but goods must still pile
up in the warehouse. Furthermore, businesses
must deal with the issue of customer
cancellations, making cash flow difficult.
Customers owe money, payment delays, and
customers leaving goods at the warehouse all
have a significant impact on warehouse
operations. The most serious effect of
COVID-19 on enterprises is a loss of cash
flow, which has a direct impact on the
survival of businesses.
3.1.4. The shortage of shipping containers
and shipping fees increase.
Another indicator of the pandemic's
destruction of international supply networks
is a lack of shipping containers.
The region's large-scale industry plummeted
after the initial Covid-19 outbreak forced
China and many of its neighbors to shut down
the country at the end of 2019. During the
crisis of the epidemic, the global shipping
sector, especially in Asia, faced a shortage of
empty containers by the end of 2020.
Container shipping costs have risen to an all-
time high due to a lack of global container
supply
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As disease risks have not been completely
mitigated, and because of container
congestion in the EU-US region, there will be
a shortage of empty containers beginning in
2020, which will have a direct impact on
Vietnam's exports. According to the
Container x Change report, the container
logistics industry's performance will
deteriorate in 2022 due to a container
shortage and rising shipping fees. Ocean
freight rates have risen since 2020, but after
the container shipping vessel Ever Given ran
aground in the Suez Canal in March 2021,
they rose even more.
According to the Ho Chi Minh City Logistics
Association, the cost of sea transportation has
increased from three to more than ten times
in the last two years, putting huge pressure on
import and export businesses.
Currently, an Indian enterprise specializing in
the production of export yarns in the
Vietnam-Singapore industrial park has
announced the closure of the factory in
December 2020. This company claims that
the freight rates for ships and containers are
too high, affecting export activities and that
production costs in Vietnam are no longer as
low as they once were.
In general, shipping lines and businesses are
struggling with a lack of empty containers,
while the world's high demand for goods and
the COVID-19 pandemic continue to put a
strain on the global supply chain.
3.2. OPPORTUNITIES FOR THE
WAREHOUSE SECTOR
3.2.1. Automated Warehouse Technology
Technology is a constantly changing and
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influential component of our lives. Applying
technology in the context of the Covid 19
outbreak is especially important in the
domains of warehousing, distribution, and
logistics. Smart warehouses are becoming a
reality, marking a turning point in the Covid
19 era.
• Utilizing Auto Selection Tool
Automated voice order picking, robotic order
picking, and order picking are some of the
methods that can be utilized to speed up the
order picking process. These technologies
also make use of advanced barcode solutions
that work in tandem with your management
software to provide the quickest and most
accurate automatic reporting experience
possible.
• Vehicle with an Automated
Guidance System (AGV)
AGV's structural integrity is improving as
technology progresses, and it has been
proven to be safer and provide a faster return
on investment than manual labor. Pallets,
racks, and other container depots are among
their most significant roles, as features that
regulate and automate the entire receiving
process.
• Automated Inventory Control
Platform
Most of these solutions are designed to
automatically manage time inventory and
aggregate data for fast, super-accurate
reporting that can be viewed remotely in
order to drive transactions.
• Warehouse management system
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A warehouse management system, also
known as a WMS, is a comprehensive
software system that packs all the important
data into a single platform that any internal
worker can access.
• Deployment of the Internet of
Things (IoT)
The Internet of Things, or IoT, is put in the
world's most efficient smart warehouses. IoT
can optimize all operations so that data is
stored in a network that is easily accessible.
This aids in the optimization of inventory
management and labor scheduling
operations.
• Collaborative Robots (Cobots)
Work productivity, managerial efficiency,
and accuracy all improve when robots are
used.
• Automated Storage and Retrieval
System (AS/RS)
Reduced labor costs, adaptability, and, of
course, better accuracy are all advantages of
automated storage and retrieval systems.
In the warehousing and storage industry in
Vietnam, companies have been observed to
employ a warehouse management system
that allows multi-location management
through effective order management, auto-
refilling of inventory, auto-generate purchase
orders to supplies, and getting automatic
updates against inbound orders.
3.2.2 Industrial zone
The Covid-19 outbreak has functioned as a
"catalyst," causing a wave of production to
relocate away from China. Due to the low
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cost of renting industrial land in Vietnam
compared to the rest of the ASEAN area, it is
one of the most appealing places for
international firms. The growth in storage
demand for import and export commodities
will fuel an explosion in both land bank and
rental prices as a result of the wave of
production migration out of China.
By 2021, dozens of industrial park projects in
13 provinces would have been approved,
guaranteeing thousands of hectares to fulfill
future needs.
The province of Bac Ninh has the most
projects, with five upcoming IPS, including
the 208.54-hectare Que Vo III Industrial
Park, which has a total investment capital of
120.9 million USD and 172.2 million USD,
and the 250-hectare Gia Binh II Industrial
Park, which has a total investment capital of
120.9 million USD and 172.2 million USD.
Quang Tri Industrial Park 481.2ha, with an
investment capital of 90.2 million USD, and
Trieu Phu Industrial Park 529ha, with an
investment capital of 90.2 million USD, are
two new development projects in Quang Tri.
In the provinces of Hai Duong, Vinh Long,
Quang Nam, Thua Thien Hue, Nam Dinh,
and Nghe An, several new projects are being
built.
Despite the Covid-19 outbreak and mobility
limitations, industrial real estate remains the
only sector in which rents and occupancy
rates have increased.
3.2.3. Partner with Third-Party Logistics
(3PL)
Third-party logistics providers (3PLs)
through the Fulfillment Center to fulfill
orders for retailers.
VNU – International University
IEM DEPARTMENT
The Fulfillment Center is the place to process
and fulfill orders. Customization activities
operate on a global scale, at a rapid speed, and
with a high level of complexity. The center
can execute operations such as assembly,
order matching (if one individual purchase
many products), packaging, labeling, and
shipping in addition to finding the proper
product. The Fulfillment Center concept
arose from the evolution of e-commerce, with
the goal of delivering items directly to
consumers in a B2C model.
3PL service companies typically offer a wide
range of services in their fulfillment centers,
including:
− Receive inventory
− Select product
− Finishing the product
− Packing box
− Labeling of shipments
− Delivery of orders
− Profit management
Since beginning to provide this package
service, Vietnam's logistics companies have
made significant progress.
Gemadept has eight logistical distribution
hubs spanning the country from south to
north, serving more than 40 significant
customers, both global (Samsung) and
domestic (Vinamilk, Masan, Kinh Do).
VINAFCO has surpassed numerous height
weights to obtain important international
contracts, like Akzo Nobel (Son Dulux),
Kimberly-Clark, and others, because of its
capacity to provide a complete package of
3PL logistics services (Kotex). In strategic
economic regions including Hanoi, Hai
Phong, Da Nang, Binh Duong, and Hau
Giang, Vinafco may provide 3PL services.
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Advanced warehouse management software
is also used by the company, which reduces
working time by 50% and allows it to react
quickly to market developments.
Between 2022 and 2032, the global sales of
third-party logistics (3PL) are expected to
reach US$2.14 trillion, growing at a
compounded annual growth rate (CAGR) of
7.6%. Sales are expected to rise as smart
technologies become more widely adopted
and as public knowledge of e-commerce
grows.
Due to customs restrictions and regulations
for efficient supply chain management, third-
party logistics services are widely employed
by small and medium-sized businesses
(SMEs). As a result, businesses can focus on
core business activities. Furthermore, the
increasing need for important medications
and vaccines, as well as a growing focus on
outsourcing logistical tasks, is expected to
drive 3PL sales in the healthcare business.
Moreover, the growing relevance of cold
storage systems during the transportation of
perishable goods, pharmaceuticals, and
chemicals is expected to propel the market
forward.
3.2.4. E-commerce warehousing
E-commerce is no longer a strange concept in
society or a new industry in our country, as it
was a few years ago. The Covid-19 pandemic
has brought numerous disruptions to the
economy, particularly in 2020, but it has also
led to the breakthrough growth of e-
commerce. Vietnam has also emerged as one
of the ASEAN region's most promising e-
commerce markets.
During the Covid-19 outbreak, which swept
across Vietnam. Many segments of the
economy have experienced a decrease.
VNU – International University
IEM DEPARTMENT
However, the fields of e-commerce (E-
commerce) and E-logistics will see
significant expansion. According to
Redseer1, after Covid-19, 86% of
Vietnamese consumers will continue or grow
their online shopping. Providing
opportunities for E-logistics to evolve
further.
As a result, several warehouses have boosted
their investment and implemented digital
technology, giving them a significant
competitive advantage. As a result of covid,
warehouses have taken use of the possibility
to construct automated warehouses, hence
increasing productivity and revenues.
BEST Express invested over $20 million in
the construction of a large-scale
contemporary freight sorting center system
with high-performance automation
technology last year. There are now 25 new
large- and small-scale sorting centers in
operation. BEST Inc.'s two largest
categorization locations in Southeast Asia are
the center of Ho Chi Minh City and Bac Ninh.
In addition, Vietnam Post is developing
large-scale, multi-functional warehouse
systems. Known as Vietnam's most advanced
bonded warehouse system, with a total area
of about 50,000 m2 and international TAPA
A certification for high-quality requirements,
it is located in Vinh Phuc, Ha Nam. By 2025,
Vietnam Post plans to extend its bonded
warehouse system to 10 hectares, e-
commerce warehouses to more than 15
hectares in major economic regions, and a
system of distribution centers around 10 a.m.,
according to the plan.
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Warehouse Engineering Management
The development speed of e-commerce (e-
commerce) has accelerated the development
of the logistics industry in Vietnam. E-
commerce is now considered a fertile ground
for the giants of the logistics industry in
foreign countries such as Indo Tran Logistics,
ITL Corp's Speedlink, or Fast Delivery to
participate and serve e-commerce platforms
such as Tiki, Shopee, and Lazada to bring the
best experience for sellers and buyers.
1.1.1 The development of cold
warehouse
The increasing popularity of online shopping
has resulted in a surge in demand for cold
storage facilities around the world. Investors
have been interested in the cold storage
market for a long time, since more and more
people acquire things online during the
epidemic, necessitating more cold storage
closer to clients.
The procedure of distribution and storing the
Covid-19 vaccine, which has become an
urgent need in Vietnam, is an example of
such a medical service. Because this item
must be stored at extremely low temperatures
to stay functional, cold storage is critical.
According to the Ministry of Industry and
Trade's Logistics study, revenue in the cold
chain industry is predicted to expand at a
compound annual growth rate of 19.6 percent
from 2019 to 2023.
To solve the problem of storage as well as
product quality. Hung Vuong Joint Stock
Company (HVG) has put into operation cold
storage in Tan Tao Industrial Park (Binh Tan,
Ho Chi Minh City). Built on an area of nearly
4 hectares, with a total investment of 1,300
VNU – International University
IEM DEPARTMENT
billion VND, the warehouse is installed with
60,000 pallets, with a capacity of 60,000 -
70,000 tons of goods. Up to now, according
to HVG, this is the largest cold storage in
Vietnam and Southeast Asia, ranked 2nd in
the world in terms of design capacity (only
after cold storage in Spain - 65,800 pallet
capacity).
4. REFERENCE
References
Bizhub, V. n. (2021, 1 10). Forum discusses
warehouse industry trend in Viet Nam.
Retrieved from VietNam news Bizhub:
http://bizhub.vn/news/forum-discusses-
warehouse-industry-trend-in-viet-
nam_321507.html
CFS, D. v. (2021, 1 14). Dịch vụ kho CFS.
Được truy lục từ GLC:
https://glc.com.vn/vn/dich-vu-cfs.html
CFS, K. (2021, 4 24). Khai Thác Kho - Bãi.
Được truy lục từ viconship:
http://www.viconshipdanang.com/dich-
vu/khai-thac-kho---bai
Hiền, Đ. (2021, 8 8). Kho lạnh dịch vụ tại Việt
Nam: Cung không đủ cầu. Được truy lục từ
vtv: https://vtv.vn/kinh-te/kho-lanh-dich-vu-
tai-viet-nam-cung-khong-du-cau-
20210808113243396.htm
Industrial Property . (2022). 检索来源:
industrial.savills.com.vn.
Journal, W. S. (2022, 2 1). Tình trạng tắc
nghẽn lan rộng khắp các cửa ngõ nhập khẩu
của Mỹ. Được truy lục từ kinh tế Sài Gòn
Online: https://thesaigontimes.vn/tinh-trang-
tac-nghen-lan-rong-khap-cac-cua-ngo-nhap-
khau-cua-my/
Linh, P. (2021, 12 9). Vietnam Post: Đầu tư
kho bãi, tăng tính cạnh tranh. Được truy lục
từ báo điện tử đảng cộng sản Việt Nam:
https://dangcongsan.vn/thong-tin-kinh-
te/vietnam-post-dau-tu-kho-bai-tang-tinh-
canh-tranh-599109.html
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IEM DEPARTMENT

Quỳnh, N. (2021, 12 20). Ngành logistics Thư, T. (2021, 12 17). Khó khăn ngành
Việt Nam đối mặt với nhiều lực cản. Được logistics container trong năm 2022. Được
truy lục từ báo điện tử đảng cộng sản Việt truy lục từ vnexpress:
Nam: https://dangcongsan.vn/kinh-te/nganh- https://vnexpress.net/kho-khan-nganh-
logistics-viet-nam-doi-mat-voi-nhieu-luc- logistics-container-trong-nam-2022-
can-600207.html 4400966.html
Research, K. (2021, 10 1). Viet Nam Insider. Van, L. (2018, 10 1). VIETNAM INSIDER.
Retrieved from vietnaminsider.vn. Retrieved from vietnaminsider.vn:
Research, K. (2022, 10 1). Warehousing https://vietnaminsider.vn/warehousing-
Market in Vietnam is Expected to Reach market-in-vietnam-is-expected-to-reach-
over USD 8 Billion by the year ending 2022. over-usd-8-billion-by-the-year-ending-2022/
Retrieved from vietnam insider: Vtv9. (2022). Chuỗi cung ứng lạnh - Thách
https://vietnaminsider.vn/warehousing- thức của Logistics nông sản đồng bằng.
market-in-vietnam-is-expected-to-reach- Được truy lục từ vtv:
over-usd-8-billion-by-the-year-ending-2022/ https://vtv.vn/video/viet-nam-logistics-
The Uprising Trend in Building a chuoi-cung-ung-lanh-thach-thuc-cua-
Warehouse in Vietnam. (2022, 2 15). logistics-nong-san-dong-bang-546171.htm
Retrieved from industrial property:
https://industrial.savills.com.vn/2022/02/war
ehouse-in-vietnam/
5. CONTRIBUTION FORM
Very poor Poor Neutral Good Very good
SCALE
1 2 3 4 5
Voting: How many members in group agree with your evaluation?
All members in group 10 agree with this evaluation
*** Minutes of meeting need to be submitted together with this paper.
6.
Full name of
No. Contribution to group work/Detail tasks Scale Voting
students
Task 3, do PowerPoint for task 3, design the
1 Vũ Thùy Trang 5
report
Task 2: layout, opportunity, chalenge, do PPT task
2 Phan Bửu Văn 5
2
Task 2: Location, service and equipment, do PPT
3 Nguyễn Minh Tuấn 5
task 2
4 Bùi Ngọc Trâm Task 1, do PPT task 1 5

5 Trần Cao Trí Task 1, do PPT task 1 5

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Warehouse Engineering Management VNU – International University
IEM DEPARTMENT

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