Samsung SDS forms logistics partnership with ALS to capitalise on Vietnam’s growth

Samsung SDS – the IT solutions and logistics arm of Samsung – hopes to expand its business in Southeast Asia through a new partnership with Vietnam-based airfreight terminal operator Aviation Logistics Service (ALS).
Through the partnership, Samsung SDS, which provides logistics services to non-Samsung companies as well as the electronics giant, plans to provide an integrated logistics service.
This includes global and inland transportation, warehousing services, and customs brokerage.
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.
Samsung SDS added that since 2013, mobile phones and components have been Vietnam’s largest export.
“Thanks to the recent change of international trade environment related to Trans-Pacific Partnership and ASEAN Economic Community, global companies are relocating their manufacturing facilities to Vietnam, which leads to increasing foreign direct investments and export-import volume,” Samsung SDS said.
Samsung Electronics was responsible for 20% of all Vietnam’s exports last year, with a value of $32bn.
Hanoi based ALS is the leading air freight terminal operator in Vietnam. ALS is also the first and only company in Vietnam providing off airport cargo terminal system.
This is the second joint venture in Southeast Asia for Samsung SDS after announcing a joint venture with Thailand-based Customs clearance company, ACUTECH last month.
Alongside these partnerships, Samsung SDS also revealed it is discussing agreements with Chinese companies and will continue its efforts to provide its advanced logistics business to customers outside the Samsung group.