Samsung SDS announces second joint venture in VietnamSamsung SDS, the conglomerate’s IT and logistics affiliate, is gaining ground in the Vietnamese market through a joint venture with the country’s leading inland transportation service operator.
Samsung said in a statement that it closed a deal with Minh Phuong Logistics Corporation on Friday to establish a joint enterprise.
This is the fourth time Samsung SDS has launched a joint enterprise in order to establish itself in an overseas market, and the second time in Vietnam.
Minh Phuong Logistics Corporation is one of Vietnam’s leading logistics companies with a strength in inland transportation.
“Collaboration with a local company that has a large capacity for inland transportation is crucial when it comes to entering the Vietnamese market, where inland transportation accounts for 65 percent of the entire logistics market,” explained the company in a statement.
With global manufacturers constantly entering the country with production facilities, Vietnam’s logistics market is growing by an average 15 to 20 percent per year mainly on transporting retail and consumer goods.
Vietnam is a member of the ASEAN Economic Community and has signed free trade agreements with Korea, Japan, Chile and many others, which implies the possibility of further growth for production facilities and logistics demand.
On top of Minh Phuong Logistics’ capacity in the local market, Samsung SDS will use its experience in the global logistics market and strength in IT and logistics consulting to enforce its stance in Vietnam.
Samsung SDS is currently working on a system that uses Internet of Things technology to monitor temperature, humidity, damage and security for cold storage containers, trucks and warehouses.
Minh Phuong Logistics is also planning to expand its low temperature warehouses in Vietnam, as both companies seek to profit from the fresh food retail industry.
BY SONG KYOUNG-SON [email@example.com]
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