Warehouse fulfillment service in Vietnam for foreigners

By Macy
24/10/2023 UTC.

Looking for a warehouse fulfillment service is an important concern for foreign sellers when doing business in Vietnam. This article provides an overview of warehouse fulfillment in Vietnam and highlights the key benefits, cost comparisons, and factors to consider when selecting a provider.

Understanding Warehouse Fulfillment Service in Vietnam

Warehouse fulfillment refers to the complete range of order processing and logistics services provided by a third-party company to store, manage and ship products on behalf of another business. Services typically include warehousing, inventory management, picking/packing, shipping, returns processing and customer service. 

In Vietnam, the warehouse fulfillment industry has grown rapidly in recent years, driven by rising domestic consumption and cross-border e-commerce demand. Large-scale logistics companies have invested heavily in constructing state-of-the-art warehouses in key economic zones. In 2023, Vietnam had 850,000 square meters of warehousing space, and the number has since increased, enabling businesses to store and manage inventory effectively. 

>>> Read more: Guide to start a business in Vietnam 

warehouse center and fulfillment serivce
Warehouse fulfillment service in Vietnam has grown rapidly in recent years

Experienced fulfillment providers in Vietnam offer modern warehouse facilities, innovative software systems and  end-to-end fulfillment solutions tailored for overseas businesses.

What benefits will foreign businesses gain from using Warehouse Fulfillment Services in Vietnam?

Partnering with a reliable fulfillment provider in Vietnam offers abundant benefits for overseas companies:

  • Reduced logistics costs - Outsourcing warehousing services can reduce warehousing costs by 50-70% compared to operating warehouses in Vietnam on your own.

  • Improved cash flow - Eliminates the need for upfront capital investment in warehouse infrastructure and inventory systems. The 3PL provider handles it all.

  • Focus on core business - Management can focus on sales, marketing and product development while fulfillment operations are handled by specialists.

  • Access to advanced systems - Gain technologies like Orde Management systems, Warehouse Management Systems, inventory optimization and digital tracking at a fraction of cost.

  • Rapid salability - Services can be flexibly scaled up during periods of high demand like holiday sales, new product launches etc.

  • Duty deferral - Shipments can be consolidated in Vietnam warehouses before cleared for export. Deferred import duties enhance capital efficiency.

  • Local market insights - Experienced providers offer insights into regulations, consumer preferences and other factors to boost overseas success.

  • Reduced risk - Outsourcing to a proven operator minimizes supply chain disruptions, compliance issues and other problems.

Proper due diligence is vital for selecting the right fulfillment partner to maximize these advantages for foreign businesses in Vietnam.

Factors to consider when outsourcing Warehouse Fulfillment Services in Vietnam

Choosing the right fulfillment partner is crucial to maximizing benefits for foreign businesses in Vietnam. Here are some main factors that you should consider when selecting fulfillment provider:

  • Experience - Proven expertise in cross-border e-commerce and integrations with local marketplaces in Vietnam like Shopee, Lazada, TikTok Shop,...

  • Compliance - Stringent quality control, product safety processes and compliance with overseas regulations. Certifications like ISO, GMP etc.

  • Location - Proximity to key logistics hubs, airports and seaports for efficient global distribution. Facilities near Ha Noi and Ho Chi Minh City are preferred.

  • IT Capability - Robust OMS, WMS and inventory tracking systems seamlessly integrated with client ERP and sales channels.

  • Flexibility - Ability to smoothly scale operations across peak seasons, mega sales, new product launches and business growth.

  • Security - Secure warehouse facilities, controlled access, video surveillance and loss prevention capabilities.

  • Cost structure - Competitive and transparent pricing. Avoid providers padding up ambiguous "hidden" charges.

  • Client portfolio - Proven experience across the client's specific industry vertical like pharma, electronics, retail etc.

Selecting a provider that excels across these parameters is key for foreign companies to maximize the advantages of outsourcing fulfillment to Vietnam. Some well-known fulfillment companies you can take into consideration include Ezbuy JapanEFEX,...

How much does it cost to outsource Warehouse Fulfillment Services in Vietnam?

The cost of hiring fulfillment services in Vietnam can be broken down into several key factors, each with specific numerical considerations:

1. Business size:

  • Larger companies may enjoy economies of scale, leading to more competitive rates.

  • Small to medium-sized enterprises might expect fulfillment costs ranging from $2,000 to $6,000 per month, depending on the complexity of services required.

2. Location impact:

  • Fulfillment centers in major cities like Ho Chi Minh City and Hanoi tend to have higher operating costs, resulting in higher service fees.

  • Smaller cities or towns offer more competitive pricing, with costs potentially 10-20% lower compared to major urban centers.

3. Service specifics:

  • Basic warehousing and order processing services can cost approximately $0.50 to $1.50 per order, or $5 to $10 per cubic foot of storage per month.

  • Specialized services like kitting, gift wrapping, and customized packaging can add an additional $1 to $3 per order, depending on complexity.

4. Shipping costs:

  • Shipping expenses vary based on the shipping method, destination, and weight. On average, businesses might allocate 5-10% of their total budget for shipping costs.

Businesses can tailor their fulfillment strategies to fit your budget and service requirements effectively by taking these details into account.

Ezbuy Japan - reliable Warehouse Fulfillment Service in Vietnam for overseas businesses

Founded in 2017, Ezbuy Japan is an experienced warehouse fulfillment provider dedicated to serving overseas e-commerce sellers from their 25,000 sqm facility in Ha Noi and Ho Chi Minh City.

So, what makes Ezbuy Japan different from other fulfillment service providers?

  • FREE Order Management Systems: We provide our out-standing OMS for customers who use fulfillment service, helping them effectively manage their products on multiple sale channels.

  • Multi sales channel integration - Seamless integration with Shopee, Lazada, TikTok Shop and other leading e-commerce platforms in Vietnam.

  • Secure storage - Climate-controlled warehouse with 24/7 monitored access and dual custody practices.

  • Fast picking & packing - High efficiency processes ensure same-day shipping for orders received before 1 pm.

  • Speedy shipping - Integrated with major domestic carriers like Ship4P, Giaohangnhanh, Giaohangtietkiem,...Low rates negotiated.

  • Returns management - Inspection, processing and asset recovery services for rejected/returned items.

  • Dedicated consulting - Advice on import-export, product registration and launching products in Vietnam.

Ezbuy has served over 60 foreign brands with its cost-effective and compliant fulfillment solutions tailored for the Vietnam market. Our expertise helps overseas companies streamline logistics, improve sales and expand their presence in Vietnam.