ajunews Thursday,29 February 2024

S. Korea to set up logistics center in Viet Nam's key manufacturing province

By Park Sae-jin Posted : January 4, 2024, 15:50 Updated : January 4, 2024, 15:50
Courtesy of the Ministry of Oceans and Fisheries
[Courtesy of the Ministry of Oceans and Fisheries]

SEOUL -- The South Korean government has established a private-administrative joint venture in a bid to establish a mega logistics center in Viet Nam's southern province of Dong Nai. The region located west of Ho Chi Minh City is one of Viet Nam's key manufacturing powerhouses.

Dong Nai Province has some key industrial characteristics that make the region an important area in Viet Nam's map of manufacturing. Cat Lai Port, Viet Nam's biggest maritime gateway, is located in the province, making the region the key waypoint for exports and imports. More than 9,000 South Korean companies, mainly manufacturers, are nested in Viet Nam.

However, despite the geological significance of the Dong Nai region, it lacks logistics centers and warehouses where South Korean traders can safely store and manage shipments including raw materials and imports from home before distributing them throughout the Southeast Asian country.

According to South Korea's marine ministry and the Ulsan Port Authority on January 4, the government organizations and KCTC, a South Korean logistics company, established a joint venture through an 18.8 billion won ($14.3 million) investment that is scheduled to start operation in December 2024.

The logistics center with a warehouse area of 12,000 square meters, about the size of two and a half football fields, will have room-temperature storage areas as well as low-temperature storage areas with refrigerating facilities. The logistics center will offer up to 15 percent discounted fees for South Korean companies, the marine ministry said.

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