There Is A Long Distance Between The North And The South Of Vietnam.
With a land area of 1,650km between north-south and 650km between east-west, the Socialist Republic of Vietnam has the capital of politics and culture in Hanoi is located in the northern region, and the economic center of Ho Chi Minh is located in the southern region. The distance is 1,150km in a straight line, and it takes more than two hours to travel between Hanoi Noi Bai Airport and Ho Chi Minh Tan Son Nhat Airport by plane.
This means that the logistics (logistics efficiency) of producing in the northern suburbs of Hanoi and in the southern suburbs of Ho Chi Minh are completely different. It definitely that it is necessary to build a supply chain that considers about the destination of semi-finished products or finished products.
Vietnam does not have a highly developed distribution network with railroads and highways developed like network in Japan. For transportation in Vietnam domestics, it is possible to arrive the next day by plane in urban areas, but it will not arrive in the next day in areas far from urban areas and long land routes. In addition, it takes a minimum of 3 days by truck between Hanoi and Ho Chi Minh, and longer by railroads transportation.
In the case of domestic transactions in Vietnam, it is expected that there will be more than one situation of visiting to a local factory such as auditing, investigation, confirmation, etc., starting a meeting with a supplier regarding manufacturing. At that time, it is difficult to communicate with suppliers who are located far away. In that respect, PRONICS Group has offices in the northern and southern regions of Vietnam, and operates in a system that enables close communication with customers in both regions.
Strength of Owning 3 Branches in Vietnam
The PRONICS Group not only covers Vietnam’s land area extending from north to south, but also have the strength of having three branches in Vietnam for exports overseas. Where is the export partner country? We can flexibly propose the most suitable transportation method based on the packing, export frequency, transportation time, etc., and select the production site that suitable with the commercial distribution.
For example, in the case of molds exported only one time, or small-sized and small-lot molded products, we suggest air transportation, so we propose production at the Hanoi factory and Ho Chi Minh factory, which are close to the airport. On the other hand, when transporting large molds and large lots of molded products by many pallets packed in container ship, there is an advantage in shipping from the Ho Chi Minh factory near the port in the export processing zone. Also, if you are shipping to southern China, the Hanoi factory near Hai Phong port can delivery faster.
If Cambodia, which has been increasingly into the supply chain in recent years, is the destination, there is Long An Province, Vietnam, which is far 150 km from capital Phnom Penh , and PRONICS PRECISION Co., Ltd (Long An Factory) can delivery by truck. Alternatively, the Hanoi factory is a good location for truck transportation to industrial cities in southern China such as Guangzhou and Shenzhen.
With the development of the East-West Economic Corridor, that connects Vietnam-Laos-Thailand-Myanmar, where Japan is also involved in ODA, by land, it’s possible to cross the Indochina Peninsula by truck, which is significantly larger than sea transportation. An increasing number of Japanese logistics companies are offering cross-east-west transportation services that are faster and cheaper than air transportation. The PRONICS Group, which owns three branches in the Vietnam region, which has economic development tremendously with a real GDP growth rate of 7%, and has logistics network always change in real time, should be a reassuring partner for overseas procurement.
Please use the PRONICS Group, we can flexibility respond to your supply chain diversely.