By Yoon Sung-won
Samsung SDS will establish a joint venture in Vietnam with the country's largest airport terminal logistics business Aviation Logistics Service (ALS), the IT affiliate of Samsung said Thursday.
The company pledged to boost its presence in the Southeast Asian logistics market through the new joint venture, added to their portfolio including the partnership with Thailand's top customs clearance business Acutech made last month.
"Considering ALS's local network and diverse business capabilities we decided that Vietnam is the most optimized partner for Samsung SDS," said Kim Hyung-tae, executive vice president of Samsung SDS's Smart Logistics Business Unit. "With this agreement we will continue to expand our business in the Southeast Asia market."
The system integration service provider said the decision to establish a joint venture in Vietnam has been made as the country's logistics market is recording about 15 to 20 percent annual growth on increasing trade volume and foreign investments. Multinational businesses relocating their global manufacturing bases after the arrival of the Trans-Pacific Partnership and the ASEAN Economic Community have also contributed to the decision, the company said.
"Handsets and mobile components have become Vietnam's biggest export items since 2013," Samsung SDS said. "We believe that we can expand external business by utilizing our existing international shipping capacity."
Samsung SDS said it is handling about 40 percent of operations at Noi Bai International Airport in Hanoi, the largest airport in northern Vietnam.
The company said it will seek new customers in Vietnam by providing integrated logistics services and expanding local sales channels on the back of ALS's existing customer base.
In particular, Samsung SDS said it will utilize storage and terminal capacity owned by local partners to stably manage the rapidly growing logistics volume in Vietnam.
Other than the partnerships in Thailand and Vietnam, the company said it is in discussions with Chinese companies to seek sustainable growth in the logistics business.
Samsung SDS will establish a joint venture in Vietnam with the country's largest airport terminal logistics business Aviation Logistics Service (ALS), the IT affiliate of Samsung said Thursday.
The company pledged to boost its presence in the Southeast Asian logistics market through the new joint venture, added to their portfolio including the partnership with Thailand's top customs clearance business Acutech made last month.
"Considering ALS's local network and diverse business capabilities we decided that Vietnam is the most optimized partner for Samsung SDS," said Kim Hyung-tae, executive vice president of Samsung SDS's Smart Logistics Business Unit. "With this agreement we will continue to expand our business in the Southeast Asia market."
The system integration service provider said the decision to establish a joint venture in Vietnam has been made as the country's logistics market is recording about 15 to 20 percent annual growth on increasing trade volume and foreign investments. Multinational businesses relocating their global manufacturing bases after the arrival of the Trans-Pacific Partnership and the ASEAN Economic Community have also contributed to the decision, the company said.
"Handsets and mobile components have become Vietnam's biggest export items since 2013," Samsung SDS said. "We believe that we can expand external business by utilizing our existing international shipping capacity."
Samsung SDS said it is handling about 40 percent of operations at Noi Bai International Airport in Hanoi, the largest airport in northern Vietnam.
The company said it will seek new customers in Vietnam by providing integrated logistics services and expanding local sales channels on the back of ALS's existing customer base.
In particular, Samsung SDS said it will utilize storage and terminal capacity owned by local partners to stably manage the rapidly growing logistics volume in Vietnam.
Other than the partnerships in Thailand and Vietnam, the company said it is in discussions with Chinese companies to seek sustainable growth in the logistics business.
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