On January 4, the Ministry of Oceans and Fisheries in South Korea revealed the establishment of a corporate entity to launch a logistics center in Vietnam, aimed at supporting small- and medium-sized enterprises (SMEs) from South Korea.
According to Yonhap newswire, the K-UPA center will be situated in Dong Nai, offering storage facilities for South Korean SMEs at room or low temperatures. The Ministry of Oceans and Fisheries collaborated with the state-run Ulsan Port Authority and South Korean logistics firm KCTC to initiate the project.
Backed by an estimated capital of $14.3 million, the facility will encompass 12,000 square meters of warehouse space with a storage capacity for 4.3 million pallets of goods.
In the joint venture, the Ulsan Port Authority will hold an 80 percent stake, while the Vietnamese subsidiary of KCTC will retain the remaining 20 percent.
“When the center opens, it will significantly enhance the export competitiveness of South Korean firms in Southeast Asia,” remarked Oceans Minister Kang Do-hyung.
The center is set to commence preliminary operations in December 2024, with full services expected to launch by July 2025. South Korean SMEs will benefit from discounts of approximately 10-15 percent.
Established in 2008, KCTC Vietnam has evolved into one of the leading third-party logistics companies in the country, offering tailored solutions to meet diverse customer needs. Meanwhile, as the governing body of the port, the Ulsan Port Authority has transformed its site into a competitive hub for shipping and logistics.
