Reopening Hanoi branch office after thorough renovation

Hanoi, Vietnam - DB SCHENKER is pleased to announce the successful reopening of its Hanoi branch office on September 19th, 2023, following a thorough renovation. The event was attended by customers, employees, and the APAC management team. 

With the upgraded office facilities, DB SCHENKER is well-positioned to continue building strong relationships and offering a superior customer experience in Northern Vietnam ensuring a seamless and secure supply chain. 

The story of DB SCHENKER’s branch office in Hanoi is one of continuous growth, adaptation, and a deep understanding of the local market. As the company reopened its newly renovated branch office, with space for 100 full-time employees, it's worth reflecting on its early beginnings and accomplishments.  

The Early Years (2001-2018)

DB SCHENKER’s presence in Hanoi dates back to 2001 when a small representative office was set up. This office comprised just four employees, including one for air operations, one for ocean operations, and two sales professionals. 

Over the years, DB SCHENKER has consistently expanded its footprint: 

2007: Schenker Vietnam Co., Ltd. – Hanoi Branch was established, replacing the representative office, and employing approximately 20 FTE’s.

2008: The Hai Phong office was established, serving to extend DB SCHENKER's reach within Northern Vietnam.

2009: A significant milestone was reached as the first Contract Logistics Distribution Centre (CL DC) was set up in Quang Minh Industrial Park, Hanoi, covering around 3,000 sqm and employing six individuals to serve the first CL customer.

2010: DB SCHENKER further solidified its presence in the region by establishing the first Air onsite office in Bac Ninh.

2013: Continuing to meet client demands, two more Air onsite offices were set up in Bac Ninh and Thai Nguyen, focusing on serving overseas technology customers.

2018: Recognizing the significance of cross-border logistics, a new office was established in Lang Son to manage Cross-Border Trucking cargoes via the Vietnam-China border gate. This strategic location capitalizes on Vietnam's proximity to China, facilitating the straightforward import of goods from China via road.

Overcoming Challenges 

The journey wasn't without its challenges. In the early days, with just two operational employees, managing the entire logistics process for each shipment was an immense task. Additionally, introducing the DB SCHENKER brand to the local market proved challenging as it was relatively unknown in Vietnam. These difficulties, however, only increased the team's determination to succeed.

Achievements and Logistics Success Stories in Northern Vietnam

DB SCHENKER's strong dedication to excellence and innovation in Northern Vietnam has produced positive outcomes, including:

• Over 300 dedicated logistics experts are actively engaged in operations across Northern Vietnam, serving several of the country's leading MNCs and global corporations at various offices and warehouses located in Hanoi, Hai Phong, Bac Ninh, Thai Nguyen, Ha Nam, Vinh Phuc, and Lang Son.
• Notable figures in operations, including over 50,000 sqm in contract logistics space situated strategically in prime locations at key logistics infrastructure hubs and industrial parks. 
• Pioneering cross-border trucking solutions in the region, especially facilitating secure land transport between Vietnam and China, bridging the gap between air and ocean transport for customers. 
• Leadership in multi-transportation solutions, including Skybridge (Air Freight and Ocean Freight), Landbridge (Cross Border land transport), and Eurasia services (Land and Rail from Asia to Europe via China).
• Leadership in advising corporations on establishing supply chains in Northern Vietnam, from the early days of foreign companies setting up manufacturing in Vietnam to the present, as companies seek to diversify their supply chains.
• Leadership in operations for global and key customers in the automotive, technology, energy and consumer and retail markets. 
• Pioneering the Operation of VMI Hubs in Northern Vietnam.
• Logistics innovation in various areas, including the implementation of IoT for tracking domestic land transport vehicles in real-time. 
• The successful implementation of the i-Experts Training Program, promoting continuous improvement and skill development for employees.
• A unique DB SCHENKER culture founded on six core values.
• An active workforce engaging in CSR activities, contributing to the local community, and promoting corporate social responsibility. 

The Future of Logistics in Northern Vietnam 

The future of logistics in Northern Vietnam appears promising, with notable developments underway. Three new investors, including Haiphong port, Hateco Group, and Saigon New Port, are preparing to establish three additional terminals at Lach Huyen deep seaport. These terminals are anticipated to become operational within the next three years.
Additionally, approval has been granted for the construction of a new logistics center, Tan Cang Xuan Cau, situated nearby the Lach Huyen Deep Seaport. This facility is expected to serve as a precursor to Free Trade Zones in the region, marking a significant step in Northern Vietnam's logistics landscape. 

Advice for Businesses Entering Northern Vietnam 

For businesses considering logistics operations in Northern Vietnam, DB SCHENKER offers practical advice:

• Thoroughly research local laws and regulations related to tax, duty, and customs clearance to ensure proper preparation and compliance.
• Take human resource considerations into account when selecting locations for entry or expansion.
• Collaborate with professional, trustworthy, and experienced logistics service providers (LSPs) for an effective supply chain setup and seek their guidance.

DB SCHENKER's Expanding Presence and Commitment in Vietnam and the Mekong region

With a network of 21 offices and warehouse facilities in Vietnam and more than 1,000 logistics experts, DB SCHENKER has established a significant presence in the region. Its warehouse space, spanning over 103,000 square meters, demonstrates its commitment to bolstering trade and commerce not only in Vietnam but also across the wider region. 

Since early 2023, Vietnam has been part of DB SCHENKER's Mekong Cluster, which also includes Thailand, Cambodia, Myanmar, and Laos. The primary goal is to deliver excellent service to all customers throughout the region.