Samsung to stretch out into Vietnam's aviation logistics sector

By Ha Thu, Dam Tuan   August 23, 2016 | 04:07 pm GMT+7

The Korean giant plans to enter Vietnam’s market through a joint venture with a logistics company.

Samsung SDS has inked a deal with Vietnam’s largest aviation logistics company, Aviation Logistics Service (ALS), to provide global and inland transportation, warehousing and customs brokerage services focused on the Vietnamese and Southeast Asian markets.

The Korean conglomerate’s information technology solutions and logistics arm, Samsung SDS, will penetrate Vietnam's aviation logistics service sector as part of Samsung’s market expansion strategy in Southeast Asia, according to information published on Samsung SDS’ website.

Samsung SDS (Samsung Data System) will expand its local sales channels on the back of ALS’s current customer base. The Korean logistics firm already handles about 40 percent of cargo operations at Hanoi’s Noi Bai International Airport.

"Considering ALS's local network and diverse business capabilities, we decided that Vietnam is the optimal partner for Samsung SDS," said Kim Hyung-tae, the executive vice president of Samsung SDS's Smart Logistics Business Unit. "Through this agreement we will continue to expand our business in Southeast Asia."

samsung-to-stretch-out-into-vietnams-aviation-logistics-sector

Samsung SDS plans to work with ALS in Vietnam's logistics market. Photo from businesskorea.co.kr

Hyung-tae added that the main reasons for choosing Vietnam were the local logistics market’s rapid annual growth of 15 to 20 percent and a large number of multinational companies that are relocating to Vietnam thanks to the positive impacts of the U.S.-led Trans-Pacific Partnership Agreement and the ASEAN Economic Community.

“Mobile phones and components have become Vietnam’s largest export items since 2013. The current international freight transportation network will strengthen our business expansion strategy,” the Samsung official underlined.

The Korean giant established its first branch in Vietnam in 2012. It currently has three primary production complexes in the Southeast Asian country: Samsung Vina Electronics in Ho Chi Minh City, the $2.5 billion Samsung Vietnam Electronics complex in the northern province of Bac Ninh and the $5 billion Samsung Vietnam Electronics plant in Thai Nguyen Province.

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