Logistics is an important part of the supply chain that helps ensure goods reach customers on time. Besides transportation of goods, storage is also an important step to ensure that goods can reach buyers at the right time with the best quality. Therefore, the warehousing system in Vietnam has developed strongly, and many units providing warehousing and storage services have been established to best meet customer needs.Huu Toan Logistics warehouse system will answer information related to the warehouse system in Vietnam today.
What is warehouse?
Warehouse, also known as warehouse, is a specialized area for storing and managing a variety of items: from raw materials, products in production to inventory or finished products. To ensure the ability to quickly respond to all customer requests. In the field of logistics and supply chain, the warehouse system plays an important role, helping to optimize transportation costs and effectively manage warehouses.
Warehouse role
Concentrate and safely preserve goods
The warehouse system provides safe gathering space, ensuring that raw materials and goods are stored safely and effectively.
Save on shipping costs
Concentrating goods in one location helps reduce transportation costs, because goods can be consolidated and shipped in large units.
Flexible system
The warehouse system ensures ready supply of raw materials, supplies and goods at the right time when customers request, helping businesses respond quickly to dynamic markets.
Maintain stable supply
Warehousing plays an important role in maintaining a stable supply, avoiding shortages and keeping the supply chain continuous.
Meet customer needs
When customers have urgent needs, the warehouse system has the ability to respond by providing goods from the source, ensuring customer satisfaction.
Empowering
Smart management of warehouse systems helps businesses improve their competitive position, provide goods and services effectively, and meet diverse customer needs.
Popular types of warehouses in Vietnam
Below are some popular types of warehouses in Vietnam:
Bonded Warehouse
A bonded warehouse is an area established on the territory of Vietnam, serving the temporary storage of goods from abroad or domestically in preparation for export. Goods owners have the right to directly authorize agents to carry out customs procedures, transfer ownership of goods, and move goods between bonded warehouses.
CFS Warehouse (Container Freight Station)
CFS warehouse is mainly divided into two main tasks: organizing and classifying LCL goods for general container transport and packing or splitting containers for export. Optimize the use of space in containers when shippers do not have enough goods to fill the container.
Tax Suspension Warehouse
Tax-protected warehouses are mainly places to store imported raw materials and supplies that have cleared customs but have not yet paid taxes. This warehouse management enterprise coordinates with customs authorities to inspect and monitor activities inside the warehouse, ensuring compliance with tax regulations.
Cross Docking
Cross Docking not only stores but also performs the function of receiving and distributing goods immediately afterwards. Helps increase the speed of transporting goods to consumers, reducing storage costs, but is not suitable for too many or too little quantities of goods.
Outstanding features of the warehouse system in Vietnam
According to a report from the Ministry of Industry and Trade, the warehouse system in Vietnam is unevenly distributed. Specifically, more than 70% of warehouse area is distributed in southern economic centers. Besides, warehouse demand will continue to increase strongly despite fluctuations in the economy.
The reason is that manufacturing enterprises tend to step up their activities and individuals’ spending needs also grow steadily. On the other hand, warehouse rental prices are also forecast to grow in the coming years at an average rate of about 1.5% to 4% per year.
According to forecasts, the warehouse vacancy rate will also decrease sharply, especially in the Northern region. The warehouse and goods storage system will focus mainly around Hanoi and coastal cities, most notably Hai Phong. However, the North is receiving increasing attention from foreign investors. If warehouse supply remains limited as it is now, rents will increase and vacancy rates decrease.
On the other hand, the logistics market in the southern region is considered to be more vibrant thanks to its extensive connection by the highway system and seaports and ports. Increased demand from retail businesses will lead to increased warehouse rental prices in the near future. However, warehousing services in the South are strongly developed, so the warehouse vacancy rate is still higher than in the North.
Accompanying services are often available with warehouse systems
Warehouse services need to rely on other services to develop. Therefore, a small warehouse rental unit or shared warehouse not only simply provides space for customers to store goods, but also provides accompanying services such as:
Sorting service
