Samsung SDS's headquarter office in Seoul. Photo: Yonhap
SDS, an IT solutions and logistics unit of South Korean conglomerate Samsung Group, will partner with Hanoi-based Aviation Logistics Service JSC to set up a joint venture to enter the Vietnamese aviation logistics market, according to The Korea Herald.
Through the joint venture, Samsung SDS will provide its integrated logistics service, including global and inland transportation, warehousing service, and customs brokerage. For its part, ALS adds value to the deal through its local customer network and external sales force.
The company said it had decided to establish the new partnership because of the rapid growth of Vietnam's logistics market, which is increasing by 15%-20% per year, and free trade agreements will boost the country’s economy.
This is Samsung SDS’s second joint venture in Southeast Asia, after forming a joint venture with Acutech, Thailand’s number one customs clearance company, last month.
Samsung Electronics Vietnam, Samsung SDS’s largest customer, raked in $32 billion from exports in 2015, accounting for one fifth of Vietnam’s export turnover.
ALS was set up in 2007 with capital from flag carrier Vietnam Airlines, Interserco and Noi Bai Cargo Terminal Services JSC. It is the first company in Vietnam providing off airport cargo terminal system.