Hyundai Glovis Vietnam, which was launched last Thursday, would transport automotive products and supply them to a local factory which has an annual capacity of 80,000 vehicles, Yonhap News Agency reported.

The company will also transport non-automotive products such as food, cold chain products, textile, and apparel.

It plans to open an office in Ho Chi Minh City in the first half of next year to manage non-automotive logistics, according to the Korea Herald. 

The company said it sees huge potential in cold chain logistics involving transport of food and other products sensitive to temperatures, given the climate in Southeast Asian. 

The Vietnam office is Hyundai Glovis’ 71 overseas. Earlier this year it opened offices in Shenzen in China and Delhi and Mumbai in India.

Logistics in Vietnam, despite being crucial to the economy, are typically expensive and make a relatively low contribution to GDP of 3-4 percent. But their cost was 25 percent of the GDP last year compared to just 9.5 percent in the U.S., 11 percent in Japan, 16 percent in South Korea, and 21.6 percent in China, the Vietnam Chamber of Commerce and Industry said.

The World Bank country director for Vietnam, Ousmane Dione, said the country’s logistics sector has a lot of potential to grow since over $1 billion worth of goods cross Vietnam’s borders every day and the value is increasing by 10 percent a year.