South Korea’s Ministry of Oceans and Fisheries has established a public-private joint venture in order to open a logistics center in the southern province of Dong Nai.
The primary aim of the center will be to support South Korean export firms by helping store goods under room or low temperatures, the ministry said in a Thursday statement.
The joint venture, K-UPA, has been formed by the state-run Ulsan Port Authority in collaboration with Korean logistics firm KCTC.
Dong Nai province is located adjacent to Ho Chi Minh City, Vietnam's economic hub, which hosts the Cat Lai port, Vietnam's largest.
The province is used as a manufacturing base by Korean export companies. But they have been facing difficulties in storing cargo in the area, the ministry said.
The center will be built at an estimated cost of KRW18.8 billion ($14.3 million) and have a warehouse area of 12,000 square meters. It will have a storage capacity of 4.3 million pallets of goods per year, including 1.08 million at room temperature and 3.24 million at low temperatures.
The Ulsan Port Authority holds an 80% stake in the project and the remaining 20% is held by the Vietnamese arm of KCTC.
“When the center opens its doors, it will significantly enhance the export competitiveness of Korean firms operating in Southeast Asia,” said Kang Do-hyung, South Korea’s Minister of Oceans and Fisheries.
The center will open in two stages, starting with normal temperature cargo in December 2024 and low-temperature cargo in July 2025.
It will offer discounts of around 10% to 15% for Korean small and medium companies.