According to a representative of Southern Steel One Member Limited Liability Company (VNSTEEL), the inauguration of the Khanh Hoa regional warehouse on 7/5 expanded the distribution network. This marked a strategic step to complete the supply chain and enhance the company's logistics capability. This move aims to strengthen the distribution system as demand for construction materials in the central coastal region increases.

Southern Steel in the South Central Region. *Photo: Southern Steel*

Khanh Hoa is a dynamically developing province, home to many large-scale infrastructure, urban, and tourism projects. According to VNSTEEL, demand for construction steel is forecast to remain high. Establishing a transit warehouse in the area helps the company reduce reliance on inter-regional transportation and improves its rapid response capability.

A complete supply chain, with logistics as a key advantage, will serve as the foundation for Southern Steel to enhance operational efficiency and strengthen its position in the construction steel industry.

The Khanh Hoa warehouse is designed as a hub connecting agents, distributors, and contractors. "Shortening geographical distances optimizes transportation costs and helps ensure timely material supply for projects," the company representative added.

The Khanh Hoa warehouse helps the enterprise shorten market distance, enhancing supply and delivery capabilities. *Photo: Southern Steel*

Logistics costs are significant in the steel industry due to the heavy and bulky nature of products, directly impacting business efficiency. In recent years, Southern Steel has prioritized developing a closed supply chain, with logistics at its core. The company operates a steel melting and rolling plant with a designed capacity of about 500,000 tons annually, and a network of Southern Steel /V/ plants producing over one million tons per year. This is complemented by a system of warehouses and a deep-water port capable of handling vessels up to 50,000 DWT, enabling direct import of raw materials and export of finished goods. This integrated approach reduces intermediary costs and transportation times.

This seamless operational chain connects the seaport, factories, and warehouses. Raw materials enter production immediately upon port arrival, while finished products can be stored and dispatched as needed. This model allows the company to proactively coordinate goods and manage costs effectively.

VNSTEEL's leadership congratulates Southern Steel on the ribbon-cutting ceremony for the Khanh Hoa warehouse. *Photo: Southern Steel*

Prior to Khanh Hoa, the company launched a general warehouse in Da Nang, marking its return to the Central region after a distribution system restructuring. Reducing long-distance transportation optimizes logistics costs and shortens delivery times, a crucial factor in the increasingly competitive market.

Alongside infrastructure expansion, Southern Steel is also advancing technology application in warehouse and transportation management. This enhances operational efficiency, improves goods flow control, and strengthens demand forecasting capabilities.

Following its development strategy, the company is building a comprehensive logistics and customer service ecosystem. The objective is to create a synchronized supply chain, reduce reliance on intermediaries, and enhance added value.

(Source: Southern Steel)