Samsung SDS said Thursday it will enter the Vietnamese market in joint venture with Aviation Logistics Service, a leading air freight terminal operator there.
Vietnam is the second destination for the company’s market expansion strategy in the Southeast Asian region.
Last month, the company agreed to set up a joint venture with Thailand’s Acutech.
Samsung SDS, an IT solutions and logistics unit of South Korea’s largest conglomerate Samsung Group, pins hopes for the rapid growth of Vietnamese logistics market, which has been growing around 15-20 percent a year.
Vietnam has been favored as new manufacturing location by a number of global companies seeking benefits from the changing trade environment due to the U.S.-led Trans-Pacific Partnership and the formation of the ASEAN economic community.
Samsung Electronics, Samsung SDS’s largest customer, also accounted for 20 percent of all Korean exports to Vietnam last year amounting to $32 billion, the company said, quoting local reports. Samsung SDS currently handles about 40 percent of cargo entering and leaving Hanoi airport.
Through the joint venture, Samsung SDS will provide its integrated logistics service, including global and inland transportation, warehousing service, and customs brokerage. The company also plans to utilize ALS’ customer network to seek potential customers as well.
“Considering ALS’s local network and diverse business capabilities we decided that Vietnam was the most optimized partner for Samsung SDS,” said Kim Hyung-tae, executive vice president of smart logistics business unit at Samsung SDS. “With this agreement we will continue to expand our business in the Southeast Asian market.”
ALS is a Hanoi-based air cargo terminal operator. It set up the first off airport freight terminal in Vietnam in 2007, Samsung said.
By Cho Chung-un (email@example.com)