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INDUSTRY PREVIEW
Vietnam Warehousing Market 2017
Prepared by StoxPlus
August 16th, 2017
@ 2017 StoxPlus Corporation.
All rights reserved. All information contained in this publication is copyrighted in the name of StoxPlus, and as such no part of this publication may be
reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means graphic, electronic or mechanical, including
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2
Vietnam Warehousing Market Preview
Part Content Page
1 Sector Structure & Description 4
2 Market Size & Potential 5
3 Market Segmentation 6 - 8
4 Key Players 9 - 14
5 Sector Summary 15
6 About StoxPlus 16 - 24
3
Logistics Sector in Vietnam can be segmented into three main categories namely
Transportation, Forwarding and Warehousing
Figure 1: Vietnam Warehousing Market Structure
Source: StoxPlus
Vietnam Warehousing Market Preview | Market Structure & Description
VIETNAM
LOGISTICS
International
Forwarding
Domestic
4 main types are: roads, railways, sea/rivers and air. Local companies
dominate this segment, e.g. Vietnam Railways Corp, Vinalines,
Vietnam Airlines. In terms of infrastructure, domestic roads & railways
network are obsolete and low efficiency, while shipping lines and
airlines are considered high costs and time consuming.
Global logistics companies dominate this segment, including Maersk
Logistics, APL Logistics, NYK Logistics, MOL Logistics.
Warehousing
Transportation
Other value-
added services
ICD & CFS services
Customs clearance
Cold Storage
Warehouse
Packing, Inspection,
Fumigation, etc.
Container loading &
unloading
Local companies are very active in this segment. Key players are
Sotrans, Vinatrans, Vinalink, Tan Cang Logistics, Vinafreight, etc.
Demand for other value-added logistics services is increasing.
Nevertheless, a large portion of these services is operated in-house, so
it will take time before outsourcing becomes more prevalent.
Cold chain is one of the most potential logistics segment for growing
in Vietnam, since Vietnam is an agriculture economy. Few foreign &
local companies tapped in this segment and none of them provides
the whole chain service.
Distribution Center
Distribution center is the next generation of warehousing. The
segment is dominated by Vinafco, Indo-Trans, Gemadept, DKSH.
Domestic companies build and own dry warehouse while foreign-
owned companies are normally the operators.
4
Nearly 70% of surveyed warehouses are located in the Southern part of Vietnam
Source: StoxPlus
Vietnam Warehousing Market Preview | Market Size & Potential
Figure 2: Key players Warehouse Distribution
Methodology
• Warehousing companies (defined as firms providing warehousing and storage services including cold storages, distribution center, bonded
warehouse and dry warehouses) are identified in our Biinform database with 800,000 businesses registered in Vietnam by the main business line,
following Vietnam Standard Industry Classification (VSIC). Key players in the segments in each region are picked up as in Figure 2.
102,000
59,000
54,351
21,850
16,200
Vinafco
Saigon Newport
Mappletree
Draco
INDO-TRANS
NORTH
80,000
35,000
18,600
PTSC Thanh Hoa
Vinafco
Transimex
CENTRAL
SOUTH
616,650
529,632
178,700
143,172
92,000
91,000
80,000
80,000
69,000
61,500
49,400
38,200
24,300
Saigon Newport
Mappletree
SOTRANS
Gemadept
Vinafco
DHL
Thang Long
Phuc Long Port
Ych - Protrade Co.,Ltd
Damco
Transimex
INDO-TRANS
Draco
5
Demand for warehousing comes from retail sectors and exported products such as
electronic devices, textile & footwear, seafood, or wooden products
Source: StoxPlus
Vietnam Warehousing Market Preview | Market Size & Potential
END-USE SECTOR MARKET SIZE
2016 (US$bn)
CAGR
2011-2016
MARKET MOVEMENT
IMPLICATION
RETAIL 127.8 13.1%
 Modern grocery retailing is increasing
tremendously with lots of investment plans from
giant international corporations (LOTTE, AEON).
 CVSs are expected to boom in the future
(Vinmart+, Circle K, Family Mart)
Modern trade posts the
needs of distribution
centers, which could be
warehousing’s key driver
ELECTRONIC DEVICES 52.8 36.7%
 FDI in manufacturing in Vietnam is increasing
thanks to low labor cost and tax benefit (ITA),
with approx. US$10bn from big names including
Samsung, Foxconn, LG, Panasonic, Intel,
Electronics, Nokia.
Key clients include giant
MNCs including Samsung,
Foxcom, LG, Electronux
TEXTILE & FOOTWEAR 37.0 12.4%
 Free trade agreements such as EVFTA is
expected to push the development of this
industry. Export value from textiles & footwear
is estimated to increase by 13-14% in 2017. The increasing export value
suggests a surge of bonded
warehouse demand
WOODEN PRODUCTS 7.0 12.0%
 Increasing global furniture demand, especially
for products from Vietnam is expected to boost
wooden product export
SEAFOOD 7.1 7.6%
 Increasing seafood re-processing & export from
Vietnam. Seafood companies tend to build in-
house cold storage.
Big impact on small cold
storage providers , yet
tapping the demand for
exporting seafood is very
potential
Figure 3: Warehousing Demand Source in Vietnam, 2016
6
There are 4 main types of warehouse serving different target customers. Distribution
Center with its demand-driven activities are viewed as the future of warehousing
Source: StoxPlus
Figure 4: Warehousing Market Segmentation Analysis
Vietnam Warehousing Market Preview | Market Segmentation
• It can be segmented into two segments
including in-house cold storage (for
internal demand) & commercial cold
storage.
• Total designed capacity of commercial
cold storages in Vietnam reaches
450,000 pallets in 2017.
• Big names include SWIRE, PFS, LOTTE
Logistics, Mekong Logistics, Phan Duy,
Hoang Lai and Hung Vuong.
• The segment is expected to grow
healthily thanks to increasing demand
from export (seafood, F&V) and grocery
retail.
• Dry storage serves a wide range of
customers, especially textile &
footwear, electrical devices,
wooden products and retail.
• Both foreign-owned and domestic
companies actively participate in
this segment.
• Key players include Sotrans,
Transimex, Gemadept, Vinafco, DHL,
Fedex.
• The total area of distribution centers in
Vietnam is estimated to be 300
hectares.
• Gamedept, Transimex and other foreign
companies such as ITL Lgostics, DHL
Logisics, Damco are the key players in
this promising segment.
• Key clients include FMCG companies such
as Unilever, P&G, Vinamilk, Masan.
• There are 155 bonded warehouses
nationwide, which mainly concentrated
at seaports and airports, recorded in
December, 2015. Hai Phong is the
leading province with 24 bonded
warehouses
• Since bonded cold storage requires a
specialized licenses, many players have
not focused on this segment yet.
2017
7
Foreign-invested players leverage professional management and portfolio of clients while
domestic firms have competitive advantages of land bank and facilities
Vietnam Warehousing Market Preview | Market Segmentation
Figure 5: Key Groups of Players in Vietnam Warehousing
Source: StoxPlus
• Top players: Gemadept, Saigon New
Port, Vinafco, Sotrans, Transimex
• Key advantages:
 Huge land bank to build
warehouse
 Low price
 Limited add-value service
• Top players: DHL, DKSH, Damco, ITL,
Mappletree Logistics, FedEx
• Key advantages:
 Professional management
 Add value services such as packaging,
labeling
 Automatic system with tracking
function and inventory management
 Optimal process
DOMESTIC
FOREIGN-OWNED
8
Value added services and professional management are the key for quick winning big
contracts with multinational companies
Figure 6: Value Added Services by Key Players
Vietnam Warehousing Market Preview | Market Segmentation
DHL
 Assembly, Kitting
and Packaging
Services
 Pre-retail Services
 Other Services
(QA/QC Control,
Customs
Compliance,
Bonded
Warehousing,
Business Support
Center)
Damco
 Inventory management and
control
 Order processing, inbound and
outbound
 Bar-coding, re-packaging,
labeling and quality control
 Yard management
 Vendor/carrier performance
 Cross-docking / flow distribution
 Static and dynamic
replenishment
 Load building
 Kitting and value added
services. )
Source: StoxPlus
• Multinational
companies such as
Nike, Unilever, P&G,
Electrolux normally
choose foreign-owned
warehousing
companies as their
professional
management as well as
value-added services.
ITL
 Bar-coding, re-packaging,
labeling and quality control
 Inventory management and
control
 E-possibility to monitor
clients’ inventory
 Extend of tracking
service for clients’
sales/distribution trend
9
Warehousing companies posted good performance in 2011-2015 period
Figure 7: Financial Performance Listed Warehousing Companies in Vietnam – Operating Profit Margin
Source: StoxPlus, Fiinpro
Sales data covers the company’s ALL BUSINESS LINES
Vietnam Warehousing Market Preview | Key Players
13.25%
12.20%
9.33%
13.36%
15.35%
4.68%
5.53%
6.34%
9.62%
10.41%
2011 2012 2013 2014 2015
Operating Profit Margin
Listed Warehouse Company Listed Logistics Company
4.57% 4.35% 4.28%
9.38%
6.75%4.05% 4.11%
5.81%
9.10%
9.63%
2011 2012 2013 2014 2015
Net Profit Margin
Listed Warehouse Company Listed Logistics Company
• It is highlighted that listed warehouse companies outperform listed logistics one in operating profit margin. Net profit margin for both typesof
companies moved closely from 2011 to 2014, however, 2015 witnessed the decrease of listed warehouse company’s ratios comparing to that of
logistics company. It can be indicated that general listed warehouse companies have to bear high interest expenses or income taxes.
10
Key Business Lines
• Registered name: SAIGON NEWPORT CORPORATION
• Head office: 722 Dien Bien Phu Street, Ward 22, Binh Thanh
District, HCMC. Email: marketing@saigonnewport.com.vn
• Establishment Year: 1989
• Principal businesses: Saigon Newport Corporation is one of the
leading professional container terminal operator in Vietnam with a
wide range of services including cargo handling, logistics, maritime
services and multi-modal transportation services. Tan Cang – Cai
Mep, a joint venture with Mitsui O.S.K Lines, Hanjin Shipping and
Wan Hai Lines, is its biggest container terminal.
Warehousing Sites & Facilities
Company Profiling
Vietnam Warehousing Market Preview | Key Players
Saigon Newport Corporation
No. Warehouse Area(sqm) Location
1 TanCang - Long Binh ICD 335,000 Dong Nai
2 TanCang - Song Than ICD 200,000 Binh Duong
3 TanCang - Hai Phong 54,000 Hai Phong
4 TanCang - Cat Lai 46,250 Ho Chi Minh City
5 My Thoi Terminal 8,500 An Giang
6 TanCang - TraNoc 7,200 CanTho
7 TanCang - Cao Lanh 7,200 Dong Thap
8 TanCang - Cai Mep Thi Vai (TCTT) 6,400 Ba Ria - Vung Tau
9 TanCang - 128 5,000 Hai Phong
10 Vegetable Oil Terminal 2,600 Ho Chi Minh City
11 TanCang - Phu Huu (Cat Lai TerminalC) 2,500 Ho Chi Minh City
12 Phuc Long ICD 1,000 Ho Chi Minh City
TOTAL 675,650
The Company has three main business lines as follows:
SAIGON
NEWPORT
Port Operation
Logistics
Services
Warehousing
Custom clearance services
Cargo forwarding services
Domestic
Shipping
Other services
Regarding warehousing sector, Saigon Newport is one of the leading
companies with facilities located along Vietnam including the South
(Ho Chi Minh, An Giang, Dong Nai, Binh Duong) and the North (Hai
Phong). Total warehouse area stayed at 675,000 sqm as of December
2016.
11
527 511
782
1,139 1,182
1,086
2011 2012 2013 2014 2015 2016
Vinafco Joint Stock Corporation
• Registered name: Vinafco Joint Stock Corporation
• Head office: Tu Khoat Village, Ngu Hiep Commune, Thanh Tri
District, Hanoi
• Establishment Year: 2001
• Charter capital: VND340bn
• Principal businesses: The company operates in transportation and
sea transportation which account for 70% of total revenue and
more than 75% of profit. With the sufficient infrastructure,
distribution centers and approximately 23,000sqm warehouses and
depots, mechanical means of loading and road transport force,
Vinafco is able to meet requirements of customers nationwide and
abroad.
Company Profiling
Figure 8: Vinafco’s Net Sales (VNDbn)
Source: StoxPlus
It is noted that net sales include revenue from all Vinafco’s business lines.
Vietnam Warehousing Market Preview | Key Players
Financial Performance
No. Warehouse Area(sqm) Location
1 DC Tien Son 35,000 Bac Giang
2 DC Binh Duong 14,000 Binh Duong
3 DC Hoa Cam 35,000 Da Nang
4 DC ThanhTri 40,000 Hanoi
5 DC Gia Lam 24,000 Hanoi
6 DC Hau Giang 78,000 Hau Giang
7 DC Bach Dang 3,000 Quang Ninh
TOTAL 229,000
Warehousing Sites & Facilities
Key Business Lines
VINAFCO
Transportation Freight Forwarding Warehousing
Vinafco provides a wide range of logistics services in supply chain
including transportation, warehousing and freight forwarding. Key
clients include Coca-Cola Beverage Vietnam, Foxcom, Big C, Saigon
Co.op and Huawei.
12
South Logistics Joint Stock Company (SOTRANS)
Warehousing Sites & Facilities
• Registered name: South Logistics Joint Stock Company
• Head office: 1B Hoang Dieu, Commune 13, District 4, HCMC
• Establishment Year: 1975
• Company type: Joint Stock Company
• Charter capital: VNDbn854.38
• Principal businesses: SOTRANS has four main business division
including International & Domestic freight forwarding,
Warehousing, Port operation and Petroleum trading. SOTRANS has
been selected by many multinational companies such as Scavi,
Cargil, Holcim, Uni Presdent, PepsiCo, Samsung, P&G, Colgate
Palmolive, etc. as reliable freight forwarders in Vietnam.
Financial Performance
Company Profiling
Vietnam Warehousing Market Preview | Key Players
620 607 661
873
1,011
1,258
2011 2012 2013 2014 2015 2016
Figure 9: SOTRANS’s Net Sales (VNDbn)
Source: StoxPlus
It is noted that net sales include revenue from all SOTRANS’s business lines.
No. Warehouse Area(sqm) Location
1 SOTRANSPhu My 50,000 Ba Ria - Vung Tau
2 SOTRANSCanTho 3,000 CanTho
3 SOTRANSLong Binh 22,000 Dong Nai
4 SOTRANSNgoc Hoi 8,500 Hanoi
5 SOTRANSLong Bien 2,500 Hanoi
6 SOTRANSThanhTri 1,400 Hanoi
7 SOTRANSThuDuc 35,000 Ho Chi Minh City
8 SOTRANSHung Dien 15,000 Ho Chi Minh City
9 SOTRANSChoDem 15,000 Ho Chi Minh City
10 SOTRANSDongAnh 6,300 Ho Chi Minh City
11 SOTRANSBen Suc 5,800 Ho Chi Minh City
12 SOTRANSHiep Phu 5,000 Ho Chi Minh City
13 SOTRANSVan Thanh 4,000 Ho Chi Minh City
14 SOTRANSLinh Xuan 2,600 Ho Chi Minh City
15 SOTRANSLong An 10,000 Long An
TOTAL 186,100
Total warehouse area stays at 186,000 sqm, focusing on the South of
Vietnam (Ho Chi Minh City, Ba Ria Vung Tay).
13
Gemadept Corporation
Key Business Lines
• Registered name: Gemadept Corporation
• Head office: Floor 21, 6 Le Thanh Ton, Ben Nghe Ward, District 1,
HCMC
• Establishment Year: 1990
• Company type: Joint Stock Company
• Charter capital: VND1,794bn
• Principal businesses: Gemadept Corporation, initially was a state-
owned company, founded in 1990. Gemadept has been unceasingly
developing with dozen of subsidiaries in 4 business categories: Port
operation, Logistics, Rubber plantation and Real estate stretching
over provinces, big cities in Vietnam, some Asean countries as
well. Of which, Port operation is its core business.
Warehousing Sites & Facilities
Company Profiling
Vietnam Warehousing Market Preview | Key Players
No. Warehouse Area(sqm) Location
1 DistributionCentreNo. 1 8,800 Binh Duong
2 DistributionCentreNo. 2 24,000 Binh Duong
3 DistributionCentreNo. 3 11,000 Binh Duong
4 DistributionCentreNo. 4 10,372 Binh Duong
5 Di An Bonded Warehouse 40,000 Binh Duong
6 Bonded warehousefor coffee 29,000 Binh Duong
7 CFS Phuoc Long 5,000 Ho Chi Minh
8 Nam Hai Port 16,000 Hai Phong
9 Mekong Logistics 15,000 Hau Giang
TOTAL 159,172
GEMADEPT
Port Opreation
(Core Business)
Logistics
Services
Distribution
Centre &
Warehousing
Trucking
Shipping
Freight
Forwarding
Air Cargo
Terminal
Forestry Real Estate
14
Key Business Lines
• Registered name: INDO-TRANS LOGISTICS
• Head office: 52-54-56 Truong Son Street, Tan Binh District, Ho Chi
Minh City. Email: info@itlvn.com. Website: www.itlvn.com
• Establishment Year: 1999
• Company type: Joint Stock Company
• Annual Sales: US$86mn (2012). Number of Employees: 600.
• Principal businesses: ITL is a private company which is engaged in
providing solution for integrated logistics, freight & transports
management and aviation services. In June 2011, Singapore Post
acquired 30% stake in ITL. In November 2012, CEVA Logistics
established a joint venture with ITL namely ITL CEVA Logistics Co.,
Ltd.
Warehousing Sites & Facilities
Company Profiling
Vietnam Warehousing Market Preview | Key Players
Indo-Trans Logistics (ITL Corp.)
No. LDC name Location Totalarea
1 Hiep Phuoc Ho Chi Minh 15,000
2 TanBinh Ho Chi Minh 3,000
3 TanBinh - New Development (4 facilities) Ho Chi Minh 20,000
4 ICDMy Dinh Hanoi 2,000
5 Tien Son Bac Ninh 14,000
TOTAL 54,000
ITL has 08 Logistics & Distribution Centres (LDC) in Ho Chi Minh, Hanoi
and Bac Ninh. These facilities are equipped with full racking system.
Except ICD My Dinh, air conditioned storage (cold & chilled) is
available. All warehouses are equipped with advanced security and
CCTV system as well as smoke/fire alarms and detectors.
ITL has 06 business divisions o provide the integrated solutions for
transport management as follows:
No. LDC name Location
1 Aviation Services Offering GeneralSales and Services Agency (GSSA) to
airlines companies
- CargoGSSA
- Passenger GSSA
- Charter and Brokerage
- Groundhandling and rampservices
- Flight support
- Interlines and Finance
2 Freight Management ITL offer a wide range of freight management:
- Air freight
- Sea freight
- Multi modal transportation
3 Leisure & Travel World Wide Agency (ITL'ssubsidiary) partnerswith
several prestige carriers including Vietnam airline,
Turkeyairline, Cebu Pacific, Qatar Airwaysto offer top
notch service for passengers
4 Rail Services - FCL DomesticsRailway Solution
5 Contract Logistics ITL provides customer with a full ranged logistics menu:
- Logistics DistributionCenters(LDC)
- Bonded warehouse
- Inventorymanagement
- Distribution& Transportation(DNT)
- Customsbrokerage
- Importer of Record (IOR)
- Other customizedlogistics solution
6 Last Mile & Express (CEP)
15
No Content Sector Summary
1
Market Size &
Potential Growth
• There are more than 300 ha distribution centres as well as 235 ha for surveyed warehouses.
• The positive outlook of customer industry has brighten the future for warehouse sectors.
2
Segmentation
Analysis
• Dry warehouse remains the largest segment in Vietnam warehouse and serves wide range of customers.
Distribution centre is the next development stage of dry warehouse with more demand-driven functions and
its main target customers are FMCG companies.
• Cold storage is a potential segment with least competitors. There are 2 subsectors of cold storage, which are
in-house and commercial warehouses. Seafood companies, meat or fruits, vegetable companies are cold
storage’s main customers.
• There are 155 bonded warehouses nationwide, which meet the demand of exporting or importing goods
storage such as computers, mobile phones and their components, textile products or seafood.
3 Key Players
• Foreign-owned companies such as Fedex, ITL, DHL, Damco are the key players, followed by local private
companies as Gemadept, Sotrans, Transimex or state-owned companies as Saigon New Port, Vinafco, Hai
Phong Port.
• While foreign-owned companies’ competitive advantages are value-added services provided with modern
facilities, domestic companies owned great land area and offered lower cost
4 Foreign ownership
• When foreign investors establish joint ventures with Vietnamese partners, it was required that their
contribution capital proportion was not allowed to exceed 51%.
• However, that limitation for foreign investors was no longer restricted as in 11 January, 2014; 100% foreign-
owned companie type was entitled. That explains for the fact that in 2014, many previous joint ventures
converted to 100% foreign-owned type and Vietnamese companies such as SFI, HMH received a great amount
of financial income as well after divestment.
Sector Summary
Vietnam Warehousing Market Preview | Sector Summary
16
STOXPLUS INTRODUCTION
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Our Strategic Partner and Shareholders:
StoxPlus Overview
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Table of Content
SNAPSHOT 3
SALES 3
OPERATION 5
OWNERSHIP STRUCTURE 7
LINKAGE 8
COMPANY INSIGHTS 9
APPENDIX: FINANCIALS 11
CONFIDENTIALITY 17
DISCLAIMER 17
Table of Content
SNAPSHOT 3
COMPANY HISTORY 4
SALES 5
OPERATION 6
OWNERSHIP STRUCTURE 7
MANAGEMENT AND ORGANIZATION 7
PROJECTS 7
LINKAGE 8
INDUSTRY ANALYSIS 9
COMPANY INSIGHTS 12
Z SCORE 14
FINANCIAL RATIOS 15
CREDIT INFORMATION 16
COMMENTARY 17
APPENDIX: FINANCIALS 18
CONFIDENTIALITY 22
DISCLAIMER 22
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‹#›
Contact Us
Lan Nguyen
Managing Director
+84 (8) 3933 3585 (ext. 205)
+84 (0) 964 946 760
lan.nguyen@stoxplus.com
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36 Hoang Cau Street, O Cho Dua Ward
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#Biinform-[Industry report][ vietnam warehousing preview 2017]

  • 1. ‹#› INDUSTRY PREVIEW Vietnam Warehousing Market 2017 Prepared by StoxPlus August 16th, 2017 @ 2017 StoxPlus Corporation. All rights reserved. All information contained in this publication is copyrighted in the name of StoxPlus, and as such no part of this publication may be reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means graphic, electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other means, without the express written consent of the publisher.
  • 2. 2 Vietnam Warehousing Market Preview Part Content Page 1 Sector Structure & Description 4 2 Market Size & Potential 5 3 Market Segmentation 6 - 8 4 Key Players 9 - 14 5 Sector Summary 15 6 About StoxPlus 16 - 24
  • 3. 3 Logistics Sector in Vietnam can be segmented into three main categories namely Transportation, Forwarding and Warehousing Figure 1: Vietnam Warehousing Market Structure Source: StoxPlus Vietnam Warehousing Market Preview | Market Structure & Description VIETNAM LOGISTICS International Forwarding Domestic 4 main types are: roads, railways, sea/rivers and air. Local companies dominate this segment, e.g. Vietnam Railways Corp, Vinalines, Vietnam Airlines. In terms of infrastructure, domestic roads & railways network are obsolete and low efficiency, while shipping lines and airlines are considered high costs and time consuming. Global logistics companies dominate this segment, including Maersk Logistics, APL Logistics, NYK Logistics, MOL Logistics. Warehousing Transportation Other value- added services ICD & CFS services Customs clearance Cold Storage Warehouse Packing, Inspection, Fumigation, etc. Container loading & unloading Local companies are very active in this segment. Key players are Sotrans, Vinatrans, Vinalink, Tan Cang Logistics, Vinafreight, etc. Demand for other value-added logistics services is increasing. Nevertheless, a large portion of these services is operated in-house, so it will take time before outsourcing becomes more prevalent. Cold chain is one of the most potential logistics segment for growing in Vietnam, since Vietnam is an agriculture economy. Few foreign & local companies tapped in this segment and none of them provides the whole chain service. Distribution Center Distribution center is the next generation of warehousing. The segment is dominated by Vinafco, Indo-Trans, Gemadept, DKSH. Domestic companies build and own dry warehouse while foreign- owned companies are normally the operators.
  • 4. 4 Nearly 70% of surveyed warehouses are located in the Southern part of Vietnam Source: StoxPlus Vietnam Warehousing Market Preview | Market Size & Potential Figure 2: Key players Warehouse Distribution Methodology • Warehousing companies (defined as firms providing warehousing and storage services including cold storages, distribution center, bonded warehouse and dry warehouses) are identified in our Biinform database with 800,000 businesses registered in Vietnam by the main business line, following Vietnam Standard Industry Classification (VSIC). Key players in the segments in each region are picked up as in Figure 2. 102,000 59,000 54,351 21,850 16,200 Vinafco Saigon Newport Mappletree Draco INDO-TRANS NORTH 80,000 35,000 18,600 PTSC Thanh Hoa Vinafco Transimex CENTRAL SOUTH 616,650 529,632 178,700 143,172 92,000 91,000 80,000 80,000 69,000 61,500 49,400 38,200 24,300 Saigon Newport Mappletree SOTRANS Gemadept Vinafco DHL Thang Long Phuc Long Port Ych - Protrade Co.,Ltd Damco Transimex INDO-TRANS Draco
  • 5. 5 Demand for warehousing comes from retail sectors and exported products such as electronic devices, textile & footwear, seafood, or wooden products Source: StoxPlus Vietnam Warehousing Market Preview | Market Size & Potential END-USE SECTOR MARKET SIZE 2016 (US$bn) CAGR 2011-2016 MARKET MOVEMENT IMPLICATION RETAIL 127.8 13.1%  Modern grocery retailing is increasing tremendously with lots of investment plans from giant international corporations (LOTTE, AEON).  CVSs are expected to boom in the future (Vinmart+, Circle K, Family Mart) Modern trade posts the needs of distribution centers, which could be warehousing’s key driver ELECTRONIC DEVICES 52.8 36.7%  FDI in manufacturing in Vietnam is increasing thanks to low labor cost and tax benefit (ITA), with approx. US$10bn from big names including Samsung, Foxconn, LG, Panasonic, Intel, Electronics, Nokia. Key clients include giant MNCs including Samsung, Foxcom, LG, Electronux TEXTILE & FOOTWEAR 37.0 12.4%  Free trade agreements such as EVFTA is expected to push the development of this industry. Export value from textiles & footwear is estimated to increase by 13-14% in 2017. The increasing export value suggests a surge of bonded warehouse demand WOODEN PRODUCTS 7.0 12.0%  Increasing global furniture demand, especially for products from Vietnam is expected to boost wooden product export SEAFOOD 7.1 7.6%  Increasing seafood re-processing & export from Vietnam. Seafood companies tend to build in- house cold storage. Big impact on small cold storage providers , yet tapping the demand for exporting seafood is very potential Figure 3: Warehousing Demand Source in Vietnam, 2016
  • 6. 6 There are 4 main types of warehouse serving different target customers. Distribution Center with its demand-driven activities are viewed as the future of warehousing Source: StoxPlus Figure 4: Warehousing Market Segmentation Analysis Vietnam Warehousing Market Preview | Market Segmentation • It can be segmented into two segments including in-house cold storage (for internal demand) & commercial cold storage. • Total designed capacity of commercial cold storages in Vietnam reaches 450,000 pallets in 2017. • Big names include SWIRE, PFS, LOTTE Logistics, Mekong Logistics, Phan Duy, Hoang Lai and Hung Vuong. • The segment is expected to grow healthily thanks to increasing demand from export (seafood, F&V) and grocery retail. • Dry storage serves a wide range of customers, especially textile & footwear, electrical devices, wooden products and retail. • Both foreign-owned and domestic companies actively participate in this segment. • Key players include Sotrans, Transimex, Gemadept, Vinafco, DHL, Fedex. • The total area of distribution centers in Vietnam is estimated to be 300 hectares. • Gamedept, Transimex and other foreign companies such as ITL Lgostics, DHL Logisics, Damco are the key players in this promising segment. • Key clients include FMCG companies such as Unilever, P&G, Vinamilk, Masan. • There are 155 bonded warehouses nationwide, which mainly concentrated at seaports and airports, recorded in December, 2015. Hai Phong is the leading province with 24 bonded warehouses • Since bonded cold storage requires a specialized licenses, many players have not focused on this segment yet. 2017
  • 7. 7 Foreign-invested players leverage professional management and portfolio of clients while domestic firms have competitive advantages of land bank and facilities Vietnam Warehousing Market Preview | Market Segmentation Figure 5: Key Groups of Players in Vietnam Warehousing Source: StoxPlus • Top players: Gemadept, Saigon New Port, Vinafco, Sotrans, Transimex • Key advantages:  Huge land bank to build warehouse  Low price  Limited add-value service • Top players: DHL, DKSH, Damco, ITL, Mappletree Logistics, FedEx • Key advantages:  Professional management  Add value services such as packaging, labeling  Automatic system with tracking function and inventory management  Optimal process DOMESTIC FOREIGN-OWNED
  • 8. 8 Value added services and professional management are the key for quick winning big contracts with multinational companies Figure 6: Value Added Services by Key Players Vietnam Warehousing Market Preview | Market Segmentation DHL  Assembly, Kitting and Packaging Services  Pre-retail Services  Other Services (QA/QC Control, Customs Compliance, Bonded Warehousing, Business Support Center) Damco  Inventory management and control  Order processing, inbound and outbound  Bar-coding, re-packaging, labeling and quality control  Yard management  Vendor/carrier performance  Cross-docking / flow distribution  Static and dynamic replenishment  Load building  Kitting and value added services. ) Source: StoxPlus • Multinational companies such as Nike, Unilever, P&G, Electrolux normally choose foreign-owned warehousing companies as their professional management as well as value-added services. ITL  Bar-coding, re-packaging, labeling and quality control  Inventory management and control  E-possibility to monitor clients’ inventory  Extend of tracking service for clients’ sales/distribution trend
  • 9. 9 Warehousing companies posted good performance in 2011-2015 period Figure 7: Financial Performance Listed Warehousing Companies in Vietnam – Operating Profit Margin Source: StoxPlus, Fiinpro Sales data covers the company’s ALL BUSINESS LINES Vietnam Warehousing Market Preview | Key Players 13.25% 12.20% 9.33% 13.36% 15.35% 4.68% 5.53% 6.34% 9.62% 10.41% 2011 2012 2013 2014 2015 Operating Profit Margin Listed Warehouse Company Listed Logistics Company 4.57% 4.35% 4.28% 9.38% 6.75%4.05% 4.11% 5.81% 9.10% 9.63% 2011 2012 2013 2014 2015 Net Profit Margin Listed Warehouse Company Listed Logistics Company • It is highlighted that listed warehouse companies outperform listed logistics one in operating profit margin. Net profit margin for both typesof companies moved closely from 2011 to 2014, however, 2015 witnessed the decrease of listed warehouse company’s ratios comparing to that of logistics company. It can be indicated that general listed warehouse companies have to bear high interest expenses or income taxes.
  • 10. 10 Key Business Lines • Registered name: SAIGON NEWPORT CORPORATION • Head office: 722 Dien Bien Phu Street, Ward 22, Binh Thanh District, HCMC. Email: [email protected] • Establishment Year: 1989 • Principal businesses: Saigon Newport Corporation is one of the leading professional container terminal operator in Vietnam with a wide range of services including cargo handling, logistics, maritime services and multi-modal transportation services. Tan Cang – Cai Mep, a joint venture with Mitsui O.S.K Lines, Hanjin Shipping and Wan Hai Lines, is its biggest container terminal. Warehousing Sites & Facilities Company Profiling Vietnam Warehousing Market Preview | Key Players Saigon Newport Corporation No. Warehouse Area(sqm) Location 1 TanCang - Long Binh ICD 335,000 Dong Nai 2 TanCang - Song Than ICD 200,000 Binh Duong 3 TanCang - Hai Phong 54,000 Hai Phong 4 TanCang - Cat Lai 46,250 Ho Chi Minh City 5 My Thoi Terminal 8,500 An Giang 6 TanCang - TraNoc 7,200 CanTho 7 TanCang - Cao Lanh 7,200 Dong Thap 8 TanCang - Cai Mep Thi Vai (TCTT) 6,400 Ba Ria - Vung Tau 9 TanCang - 128 5,000 Hai Phong 10 Vegetable Oil Terminal 2,600 Ho Chi Minh City 11 TanCang - Phu Huu (Cat Lai TerminalC) 2,500 Ho Chi Minh City 12 Phuc Long ICD 1,000 Ho Chi Minh City TOTAL 675,650 The Company has three main business lines as follows: SAIGON NEWPORT Port Operation Logistics Services Warehousing Custom clearance services Cargo forwarding services Domestic Shipping Other services Regarding warehousing sector, Saigon Newport is one of the leading companies with facilities located along Vietnam including the South (Ho Chi Minh, An Giang, Dong Nai, Binh Duong) and the North (Hai Phong). Total warehouse area stayed at 675,000 sqm as of December 2016.
  • 11. 11 527 511 782 1,139 1,182 1,086 2011 2012 2013 2014 2015 2016 Vinafco Joint Stock Corporation • Registered name: Vinafco Joint Stock Corporation • Head office: Tu Khoat Village, Ngu Hiep Commune, Thanh Tri District, Hanoi • Establishment Year: 2001 • Charter capital: VND340bn • Principal businesses: The company operates in transportation and sea transportation which account for 70% of total revenue and more than 75% of profit. With the sufficient infrastructure, distribution centers and approximately 23,000sqm warehouses and depots, mechanical means of loading and road transport force, Vinafco is able to meet requirements of customers nationwide and abroad. Company Profiling Figure 8: Vinafco’s Net Sales (VNDbn) Source: StoxPlus It is noted that net sales include revenue from all Vinafco’s business lines. Vietnam Warehousing Market Preview | Key Players Financial Performance No. Warehouse Area(sqm) Location 1 DC Tien Son 35,000 Bac Giang 2 DC Binh Duong 14,000 Binh Duong 3 DC Hoa Cam 35,000 Da Nang 4 DC ThanhTri 40,000 Hanoi 5 DC Gia Lam 24,000 Hanoi 6 DC Hau Giang 78,000 Hau Giang 7 DC Bach Dang 3,000 Quang Ninh TOTAL 229,000 Warehousing Sites & Facilities Key Business Lines VINAFCO Transportation Freight Forwarding Warehousing Vinafco provides a wide range of logistics services in supply chain including transportation, warehousing and freight forwarding. Key clients include Coca-Cola Beverage Vietnam, Foxcom, Big C, Saigon Co.op and Huawei.
  • 12. 12 South Logistics Joint Stock Company (SOTRANS) Warehousing Sites & Facilities • Registered name: South Logistics Joint Stock Company • Head office: 1B Hoang Dieu, Commune 13, District 4, HCMC • Establishment Year: 1975 • Company type: Joint Stock Company • Charter capital: VNDbn854.38 • Principal businesses: SOTRANS has four main business division including International & Domestic freight forwarding, Warehousing, Port operation and Petroleum trading. SOTRANS has been selected by many multinational companies such as Scavi, Cargil, Holcim, Uni Presdent, PepsiCo, Samsung, P&G, Colgate Palmolive, etc. as reliable freight forwarders in Vietnam. Financial Performance Company Profiling Vietnam Warehousing Market Preview | Key Players 620 607 661 873 1,011 1,258 2011 2012 2013 2014 2015 2016 Figure 9: SOTRANS’s Net Sales (VNDbn) Source: StoxPlus It is noted that net sales include revenue from all SOTRANS’s business lines. No. Warehouse Area(sqm) Location 1 SOTRANSPhu My 50,000 Ba Ria - Vung Tau 2 SOTRANSCanTho 3,000 CanTho 3 SOTRANSLong Binh 22,000 Dong Nai 4 SOTRANSNgoc Hoi 8,500 Hanoi 5 SOTRANSLong Bien 2,500 Hanoi 6 SOTRANSThanhTri 1,400 Hanoi 7 SOTRANSThuDuc 35,000 Ho Chi Minh City 8 SOTRANSHung Dien 15,000 Ho Chi Minh City 9 SOTRANSChoDem 15,000 Ho Chi Minh City 10 SOTRANSDongAnh 6,300 Ho Chi Minh City 11 SOTRANSBen Suc 5,800 Ho Chi Minh City 12 SOTRANSHiep Phu 5,000 Ho Chi Minh City 13 SOTRANSVan Thanh 4,000 Ho Chi Minh City 14 SOTRANSLinh Xuan 2,600 Ho Chi Minh City 15 SOTRANSLong An 10,000 Long An TOTAL 186,100 Total warehouse area stays at 186,000 sqm, focusing on the South of Vietnam (Ho Chi Minh City, Ba Ria Vung Tay).
  • 13. 13 Gemadept Corporation Key Business Lines • Registered name: Gemadept Corporation • Head office: Floor 21, 6 Le Thanh Ton, Ben Nghe Ward, District 1, HCMC • Establishment Year: 1990 • Company type: Joint Stock Company • Charter capital: VND1,794bn • Principal businesses: Gemadept Corporation, initially was a state- owned company, founded in 1990. Gemadept has been unceasingly developing with dozen of subsidiaries in 4 business categories: Port operation, Logistics, Rubber plantation and Real estate stretching over provinces, big cities in Vietnam, some Asean countries as well. Of which, Port operation is its core business. Warehousing Sites & Facilities Company Profiling Vietnam Warehousing Market Preview | Key Players No. Warehouse Area(sqm) Location 1 DistributionCentreNo. 1 8,800 Binh Duong 2 DistributionCentreNo. 2 24,000 Binh Duong 3 DistributionCentreNo. 3 11,000 Binh Duong 4 DistributionCentreNo. 4 10,372 Binh Duong 5 Di An Bonded Warehouse 40,000 Binh Duong 6 Bonded warehousefor coffee 29,000 Binh Duong 7 CFS Phuoc Long 5,000 Ho Chi Minh 8 Nam Hai Port 16,000 Hai Phong 9 Mekong Logistics 15,000 Hau Giang TOTAL 159,172 GEMADEPT Port Opreation (Core Business) Logistics Services Distribution Centre & Warehousing Trucking Shipping Freight Forwarding Air Cargo Terminal Forestry Real Estate
  • 14. 14 Key Business Lines • Registered name: INDO-TRANS LOGISTICS • Head office: 52-54-56 Truong Son Street, Tan Binh District, Ho Chi Minh City. Email: [email protected]. Website: www.itlvn.com • Establishment Year: 1999 • Company type: Joint Stock Company • Annual Sales: US$86mn (2012). Number of Employees: 600. • Principal businesses: ITL is a private company which is engaged in providing solution for integrated logistics, freight & transports management and aviation services. In June 2011, Singapore Post acquired 30% stake in ITL. In November 2012, CEVA Logistics established a joint venture with ITL namely ITL CEVA Logistics Co., Ltd. Warehousing Sites & Facilities Company Profiling Vietnam Warehousing Market Preview | Key Players Indo-Trans Logistics (ITL Corp.) No. LDC name Location Totalarea 1 Hiep Phuoc Ho Chi Minh 15,000 2 TanBinh Ho Chi Minh 3,000 3 TanBinh - New Development (4 facilities) Ho Chi Minh 20,000 4 ICDMy Dinh Hanoi 2,000 5 Tien Son Bac Ninh 14,000 TOTAL 54,000 ITL has 08 Logistics & Distribution Centres (LDC) in Ho Chi Minh, Hanoi and Bac Ninh. These facilities are equipped with full racking system. Except ICD My Dinh, air conditioned storage (cold & chilled) is available. All warehouses are equipped with advanced security and CCTV system as well as smoke/fire alarms and detectors. ITL has 06 business divisions o provide the integrated solutions for transport management as follows: No. LDC name Location 1 Aviation Services Offering GeneralSales and Services Agency (GSSA) to airlines companies - CargoGSSA - Passenger GSSA - Charter and Brokerage - Groundhandling and rampservices - Flight support - Interlines and Finance 2 Freight Management ITL offer a wide range of freight management: - Air freight - Sea freight - Multi modal transportation 3 Leisure & Travel World Wide Agency (ITL'ssubsidiary) partnerswith several prestige carriers including Vietnam airline, Turkeyairline, Cebu Pacific, Qatar Airwaysto offer top notch service for passengers 4 Rail Services - FCL DomesticsRailway Solution 5 Contract Logistics ITL provides customer with a full ranged logistics menu: - Logistics DistributionCenters(LDC) - Bonded warehouse - Inventorymanagement - Distribution& Transportation(DNT) - Customsbrokerage - Importer of Record (IOR) - Other customizedlogistics solution 6 Last Mile & Express (CEP)
  • 15. 15 No Content Sector Summary 1 Market Size & Potential Growth • There are more than 300 ha distribution centres as well as 235 ha for surveyed warehouses. • The positive outlook of customer industry has brighten the future for warehouse sectors. 2 Segmentation Analysis • Dry warehouse remains the largest segment in Vietnam warehouse and serves wide range of customers. Distribution centre is the next development stage of dry warehouse with more demand-driven functions and its main target customers are FMCG companies. • Cold storage is a potential segment with least competitors. There are 2 subsectors of cold storage, which are in-house and commercial warehouses. Seafood companies, meat or fruits, vegetable companies are cold storage’s main customers. • There are 155 bonded warehouses nationwide, which meet the demand of exporting or importing goods storage such as computers, mobile phones and their components, textile products or seafood. 3 Key Players • Foreign-owned companies such as Fedex, ITL, DHL, Damco are the key players, followed by local private companies as Gemadept, Sotrans, Transimex or state-owned companies as Saigon New Port, Vinafco, Hai Phong Port. • While foreign-owned companies’ competitive advantages are value-added services provided with modern facilities, domestic companies owned great land area and offered lower cost 4 Foreign ownership • When foreign investors establish joint ventures with Vietnamese partners, it was required that their contribution capital proportion was not allowed to exceed 51%. • However, that limitation for foreign investors was no longer restricted as in 11 January, 2014; 100% foreign- owned companie type was entitled. That explains for the fact that in 2014, many previous joint ventures converted to 100% foreign-owned type and Vietnamese companies such as SFI, HMH received a great amount of financial income as well after divestment. Sector Summary Vietnam Warehousing Market Preview | Sector Summary
  • 17. 17 A wide range of services based on a database aggregating 800+ quoted companies and 1200+ unlisted public companies: • FiinPro Platform • Data Feed Services A portal-based service built on an aggregated source of more than 400,000 Vietnamese companies for: • Company Report • Industry Report • Customized • Market Entry Advisory Financial Information www.fiinpro.com Business Information www.biinform.com StoxPlus Joint Stock Company www.stoxplus.com • Date of incorporation: March 11, 2008 • Number of staff: 80 (as of Dec 2016) including Data Analysts, Content Editors, Researchers, Product Developers. Our Strategic Partner and Shareholders: StoxPlus Overview
  • 18. 18 BIINFORM.COM: ONE-STOP-SHOP FOR ALL PREMIUM REPORTS COMPANY REPORTS INDUSTRY REPORTS CUSTOMIZED RESEARCH MARKET ENTRY SERVICES Company reports with credit and financial information available for sale and on request via portal: www.biinform.com In-depth industry reports of 15 key sectors of Vietnam (financial services, manufacturing, logistics, etc.) available for sale on: www.biinform.com More in-depth research tailored to clients’ specific segments of interest with insights input by industry experts. Actionable recommendation for clients’ entry strategies, including advisory on all stages: • Market assessment • Business Intelligence • Investment Screening • Trade Connection Our Biinform Services
  • 19. 19 • StoxPlus existing database • General Statistics Office • Stock Exchanges • The Media • Banks • VCCI • Credit Information Centre • Chambers of Commerce • Ministries (MOF, MOIT) • Self –contribution by businesses • Trade Associations • Field Survey • Exhibitors • Crowd Sourcing INTEGRATED DATA SOURCES BIINFORM – THE MOST HOLISTIC BUSINESS INFORMATION DATABASE IN VIETNAM 1. COMPANY REPORTS
  • 20. 20 TWO TYPES OF REPORT: STANDARD AND COMPREHENSIVE Standard Company Report – US$120 (Quotation for Package Subscription) 1. COMPANY REPORTS Table of Content SNAPSHOT 3 SALES 3 OPERATION 5 OWNERSHIP STRUCTURE 7 LINKAGE 8 COMPANY INSIGHTS 9 APPENDIX: FINANCIALS 11 CONFIDENTIALITY 17 DISCLAIMER 17 Table of Content SNAPSHOT 3 COMPANY HISTORY 4 SALES 5 OPERATION 6 OWNERSHIP STRUCTURE 7 MANAGEMENT AND ORGANIZATION 7 PROJECTS 7 LINKAGE 8 INDUSTRY ANALYSIS 9 COMPANY INSIGHTS 12 Z SCORE 14 FINANCIAL RATIOS 15 CREDIT INFORMATION 16 COMMENTARY 17 APPENDIX: FINANCIALS 18 CONFIDENTIALITY 22 DISCLAIMER 22 Comprehensive Company Report – US$250 (Quotation for Package Subscription)
  • 21. 21 Consumer Finance Cement PET Packaging Healthcare Services Banking State–owned Enterprises Building Materials Logistics Flexible Packaging Pharmaceuticals Fertilizer Food & Beverage OUR SECTOR EXPERTISE AND PARTICIPATION OF INDUSTRY EXPERTS ENSURE INFORMATION COMPREHENSIVENESS AND IN-DEPTH ANALYSIS 2. INDUSTRY REPORTS
  • 22. 22 WE COVER IN-DEPTH MANY SECTOR REPORTS No. Products Category Unit price Turnaround Time I. INDUSTRY REPORTS 1 Vietnam Bank Card Report 2016 Banking & Finance $2,500 Available 2 Vietnam SOE Investor Survey Banking & Finance $1,000 Available 3 Vietnam Banking Report Banking & Finance $2,500 Available 4 Vietnam Consumer Finance Market 2016 Banking & Finance $2,500 Available 5 Vietnam Consumer Finance Market Customer Survey 2016 Banking & Finance $2,500 Available 6 Vietnam Consumer Finance Report 2015 Banking & Finance $1,500 Available 7 Vietnam Consumer Finance Market Customer Survey 2015 Banking & Finance $1,500 Available 8 Vietnam Fertilizer Market 2015 Basic Materials $2,500 Available 9 Vietnam Flexible Packaging Market 2016 Basic Materials $2,500 Available 10 Vietnam Flexible Packaging Market 2015 Basic Materials $2,500 Available 11 Vietnam Cement Market Report 2016 Basic Materials $2,500 Available 2. INDUSTRY REPORTS
  • 23. 23 WE COVER IN-DEPTH MANY SECTOR REPORTS 2. INDUSTRY REPORTS No. Products Category Unit price Turnaround Time 12 Vietnam Plastic Packaging Report 2013 Basic Materials $1,500 Available 13 Vietnam Coffee Market 2015 Consumer Goods $500 Available 14 Vietnam Apparel Industry 2015 Consumer Goods $1,000 Available 15 Vietnam Animal Feed Market Report 2016 Consumer Goods $2,500 Available 16 Vietnam Food Services 2016 Consumer Goods $2,500 Available 17 Vietnam Food Processing Market 2016 Consumer Services $2,500 Available 18 Vietnam Healthcare Report 2012 Health Care $1,500 Available 19 Vietnam PET Packaging Market 2015 Industrials $2,500 Available 20 Vietnam Logistics Report Industrials $2,500 Available 21 Vietnam Cold Storage Market 2016 Industrials $2,500 Available 22 Vietnam M&A Report 2016 M&A $400 Available II. AD-HOC REQUESTS Upon Scope of Work
  • 24. 24 COMPREHENSIVE DATABASE LOCAL INSIGHTS GLOBAL EXPERIENCE FULL SPECTRUM OF SERVICES • A full database of key sectors and companies • Validation of data to provide most accurate information • On-the-ground study and in-depth knowledge of industries covered • Partners from industry players to Government agencies (CIC, NFSC, GSO,…) • Network with top experts in all sectors • Seasonal experts and analysts with international experience in the US, UK, and Australia • The only one-stop- shop for all your information needs, from basic company reports to premium advisory services to execution COMBINE DATA-DRIVEN ANALYSIS WITH LOCAL AND PRACTICAL MARKET INSIGHTS Our Differentiators
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  • 26. ‹#› Contact Us Lan Nguyen Managing Director +84 (8) 3933 3585 (ext. 205) +84 (0) 964 946 760 [email protected] Head Office 5th Floor, Anh Minh Building 36 Hoang Cau Street, O Cho Dua Ward Hanoi, Vietnam + 84 (4) 3562 6962 Ho Chi Minh City Branch 2nd Floor, May Plaza 63D Vo Van Tan, District 3 Ho Chi Minh City, Vietnam + 84 (8) 3833 3485