Logistics Base for Southeast Asia
Samsung SDS is accelerating its invasion into the logistics market in Southeast Asia.
On August 18, Samsung SDS announced that it will put a spur to the expansion of business in the Southeast Asian market by agreeing to establish a joint venture with ALS, the largest company in the air transportation terminal sector in Vietnam that is growing fast as a newly emerging logistics market in Asia. This joint venture establishment agreement between Samsung SDS and ALS followed a similar one signed between Samsung SDS and Acutec, the first-ranked company in customs clearance in Thailand, last month. So the deal means that Samsung SDS carried out the second invasion into the Southeast Asian region.
Samsung SDS will establish the joint venture in Vietnam as global production bases are moving into Vietnam one after another due to changes in the international commerce environment such as the conclusion of the Trans-Pacific Partnership (TPP) and the inauguration of the ASEAN Economic Community (AEC). In addition, an increase in foreign investment and export and import volume leads to annual increases of 15% to 20% in the Vietnamese logistics market. This market situation was applied to the plan to establish the joint venture in Vietnam.
Further, it is said that since 2013, cell phones and parts have risen as Vietnam’s largest export items, Samsung SDS strategically judged that it will be able to easily expand its external business by utilizing its advanced international transportation capability.
At the moment, Samsung SDS is handling about 40% of air cargo volume at Hanoi Airport, the largest airport in northern Vietnam. ALS which made a deal to found a joint venture with Samsung SDS is the number one logistics company in Vietnam which operates most of the air terminals in Hanoi, Vietnam. Since 2007, the company has been running an air terminal outside the airport for the first time in Vietnam.
By utilizing ALS’s customer network via the joint venture, Samsung SDS will not only provide advanced general logistics services such as international and inland transportation, warehousing and customs clearance among others but also discover new customers by reinforcing sales power in Vietnam. Samsung expects to secure capabilities to manage rapidly growing cargo volume in Vietnam stably by making good use of warehouses and terminals of local companies.