The Republic of Korea is working to open a logistics centre in Vietnam. Illustrative image (Photo: VNA)

Seoul – The Ministry of Oceans and Fisheries (MOF) of the Republic of Korea (RoK) said on January 5 that it has kicked off a corporate body in Vietnam, paving the way for the operation of a logistics centre in the Southeast Asian country to support small- and medium-sized enterprises.

The launch of K-UPA came as the ministry has been working with the state-run Ulsan Port Authority to open the centre in Vietnam’s southern province of Dong Nai to help Korean firms store goods under room or low temperatures.

Under the collaboration with Korea-based logistics firm KCTC, the project valued at 18.8 KRW (14.3 million USD), focuses on the construction of a 12,000-square-metre centre which is able to store 4.3 million pallets of goods.

The Ulsan Port Authority holds an 80% stake in the project, with the Vietnamese KCTC taking up the remainder.

Minister of Oceans and Fisheries Kang Do-hyung said when the centre opens its doors, it will significantly enhance the export competitiveness of Korean firms operating in Southeast Asia.

The centre is expected to become operational in December this year, with the full service set to begin by July 2025. It will offer discounts of around 10-15% for small and medium-sized companies of the RoK.