DHL to invest €10 million to grow its Vietnamese operations
DHL supply chain has committed to a €10 million investment in its Vietnam operations, to be completed by 2015.
The logistics provider unveiled extensive plans to invest in new facilities and IT solutions including a Warehousing Management System and Transportation Management System to increase efficiency and visibility.
In addition to these upgrades, the company plans to grow its transport fleet and strengthen its workforce to further expand its business in core sectors, and has announced the building of its second 10,000 sq meter built-to-suit distribution centre in Bac Ninh in North Vietnam, which is due for completion in the third quarter of 2013.
Growing its footprint
With the €10 million investment, DHL Supply Chain Vietnam expects to increase its staff strength by over 170 percent, creating 1400 new job opportunities. By 2015, DHL Supply Chain will have over 2200 people in its operations locally.
“Growing talent and training is key for DHL. In the last three years, we have doubled our headcount in Vietnam to the current 800 staff,” said Oscar De Bok, CEO South and South East Asia, DHL Supply Chain. “To meet the demands of our future business and expand our workforce to some 2200 people by 2015, we have rigorous training and development programs in place to grow the local talent pool and deploy industry leading practices in the country”.
Breakdown of investments
- DHL’s Vietnam operations will see a substantial increase (over 50 percent) in DHL’s warehouse space in Vietnam - from 91,000 sq meters to over 141,000 sq meters by 2015.
- The company plans to grow its transportation fleet by over 160 percent, to deploy over 100 vehicles in the next two years.
- The investment includes more advanced IT systems support that offers a range of scalable supply chain execution systems; including a Warehouse Management System, Transport Management System, Spare Parts Logistics System and other value-added systems to enhance and improve supply chain visibility.
- DHL Supply Chain is expanding its office in Hanoi to have full fledged staff functions in order to take responsibility for the whole Northern region of Vietnam.
- Finally, DHL is planning for expansion in the North of Vietnam, including a new Distribution Centre in Bac Ninh DHL Supply Chain has plans for additional expansion in North Vietnam. Spanning 10,000 sq meters, construction is underway for a new built-to-suit distribution centre in Bac Ninh designed to suit the bespoke needs of the Consumer, Retail, and Technology industries.
Scheduled for completion in the third quarter of 2013, the latest facility complements DHL Supply Chain’s existing 20,000 sq meter built-to-suit facility in Bac Ninh which incorporates a Parts Distribution Centre for the automotive industry.
“We’re investing in the future of Vietnam, to successfully replicate best practices from our international operations and - combined with our extensive local experience – showcase industry-leading solutions. Our investments over the next few years will allow us to further grow in tandem with the country’s progress, and offer first-rate services for both global and local customers alike,” said Jan Willem Winkelhuijzen, DHL Supply Chain’s Country Manager for Vietnam.