Japan investors launch logistics business in Vietnam
The undertaking by the two Tokyo-based stakeholders, Sojitz Corporation and Kokubu Group Corporation, was made in collaboration with major Vietnamese logistics company, New Land Co. Ltd.
New Land Vietnam will provide modern cold chain logistics services by using its own four-temperature (room temperature, fixed temperature, refrigerated, and frozen) logistics centres and trucks to consistently manage temperatures across all food product operations, from storage to store shipment.
The management of New Land envisions reaching US$9.7 million annual sales within 10 years, said the news release.
It will also serve to complement an existing joint venture – Huong Thuy Manufacture Service Trading Corporation – of the three stakeholders and act as a catalyst to further expand their food value chain in Vietnam.
Sojitz has substantial business experience across multiple fields in the Southeast Asian country, said the news release, having fist established its presence in 1986. The company is in the process of developing a food value chain capitalizing upon its vast manufacturing experience in Vietnam.
Kokubu’s management team possesses extensive know-how when it comes to the distribution and logistics across a wide spectrum of food products from perishables to processed foods.
In addition, Kokubu can draw upon its successful experience implementing cold chain logistics operations in East Asia and other Southeast Asian countries.
New Land Co. Ltd., the news release continued, has been a leader in the logistics industry in Vietnam with substantial experience in warehouse and logistics operations in addition to its strong relations with Sojitz and Kokubu.
In recent years, economic growth in Vietnam has resulted in increased purchasing power of the country’s consumers and substantial growth in the number of modern retail business establishments such as supermarkets and conveniences store throughout the country.
While the need for cold chain logistics services is rising, the release noted that Vietnam does not yet have a sufficient infrastructure systems in place to meet the demand, creating a perfect opportunity for New Land Vietnam to rapidly establish market entry and gain market share.
Through this business, Sojitz and Kokubu will contribute to the development of a modern logistics infrastructure while simultaneously working towards increased customer satisfaction in Vietnam.
New Land Vietnam conducts its operations from facilities located at the Binh An Garment and Textile Industrial Zone, Binh Thang Ward, Di An Town, Binh Duong Province, Vietnam.
The company has 11,000 square metres of office and floor space at its warehouse with a storage capacity for 13,000 pallets. It has an initial fleet size of 50 trucks.
The facilities are located within a one hour drive of Cat Lai Port (the largest container terminal in Vietnam) and Long Thanh International Airport, expected to begin operations in 2025.
