Vietnamese e-commerce company Tiki on June 4 signed an agreement with Unidepot to builda new 10,000 sqmfulfillment centre in HCM City. — Photo courtesy of Tiki

Vietnamese e-commerce company Tiki on June 4 signed an agreement with Unidepot to build a new 10,000 square- metre fulfillment centre in HCM Citys Nha Be District.

Rahul Awasthi, vice president of Tiki's warehouse management, said: “We have chosen this location as it serves our customers and sellers well.”

Unidepot provides large-scale logistic enterprises with warehousing services for storage and safe-keeping of commodities.

Tiki is targeting to triple its fulfillment area from 30,000 sqmetres to 100,000 sqmetres, and this is one step towards that journey, Awasthi said, adding that italso demonstrates Tikis firm commitment to Viet Nams logistics and e-commerce sectors.

However, Tran Ngoc Thai Son, founder andCEO of Tiki, said the supply chain industrys effectiveness wasstill not high.An order worth VND10 ($0.0004), for instance, includes logistics costs that cango up toVND2.5, he added.

Developing warehouses helps reduce additional costs and speeds up the time for goods delivery, he said.

According to a survey conducted by Tiki atthe end of last year, customers said they wereattracted to online shopping because of convenience and therapid delivery time, which is adecisive element. — VNS