Hyundai Glovis, Ulsan Port Authority to build logistics center in Ho Chi Minh City

South Korea’s Hyundai Glovis Co. and a local port authority will build a logistic center in Vietnam’s Ho Chi Minh City to use it as a distribution base for auto parts in the Southeast Asian nation.

Hyundai Glovis, the logistics unit of Hyundai Motor Group, said on Jan. 14 that it has signed a memorandum of understanding with the Ulsan Port Authority on the construction of the logistics center.

The two companies plan to build the facility on a plot of 30,000 square meters in the port area of Ho Chi Minh City, the most populous and largest city in Vietnam. Hyundai aims to put the logistics center into operation in 2022.

The facility will serve as a cold chain supply base for refrigerated and frozen products as well as a warehouse for auto components, according to Hyundai Glovis.

The company said the logistics center will become a one-stop service hub for customs clearance, storage of goods and the point of departure for inland transportation in Vietnam.

Once the construction of the facility is completed, Hyundai Glovis also plans to look for new business opportunities in the e-commerce logistics sector.

“We aim to turn the logistics center into a successful business model, not just in Vietnam but throughout Southeast Asia,” said a company official.

Write to Sun A Lee at suna@hankyung.com
In-Soo Nam edited this article.