Samsung SDS announced that it has signed a contract to establish a joint venture with Vietnam's MP Logistics to expand its logistics business in Vietnam.

This establishment agreement will mark the creation of the fourth overseas local logistics joint venture, following existing ones in Thailand and China.

Vietnam is emerging as a global production base, attracting increasing foreign investment. Fueled by free trade agreements with Korea, China, Japan, and the EU, and its membership in the ASEAN Economic Community, the country is recording an annual logistics market growth rate of 15-20%, centered on consumer goods and distribution logistics.

Vietnam's road transport market accounts for a significant portion of the local freight transport market, reaching 65%. Therefore, collaboration with companies with sufficient transport capabilities is essential for entering the local logistics market.

Samsung SDS plans to actively expand its business from its existing high-tech focus to the consumer goods and textiles logistics markets by combining its strengths in IT, logistics consulting, and global transportation with MP Logistics' local logistics capabilities.

Samsung SDS is currently conducting various projects to monitor temperature, humidity, shock, and security of refrigerated/freezed containers, trucks, warehouses, etc., particularly based on an IoT platform.

Kim Hyung-tae, Vice President and Head of SL Business Division at Samsung SDS, said, “This joint venture establishment agreement will serve as an opportunity to accelerate our expansion into the rapidly growing Vietnamese logistics market,” and added, “We will continue to strengthen our partnerships with competitive companies in various countries to ensure the continued growth of our global logistics business.”