Saigon Co.op and CJ Group sign an agreement for logistics co-operation in HCM City on January 30. — Photo courtesy of Saigon Co.op

The Saigon Union of Trading Co-operatives and South Korea’s CJ Group have signed an agreement to establish logistics services and a network of automated warehouses.

The partnership would help improve the circulation of Saigon Co.op's goods, ensuring locally-made goods can smoothly be transported to foreign markets.

The two companies will jointly develop and operate a warehouse project in the HCM City - Lê Minh Xuân Industrial Park 3.

Its construction began last October and is scheduled for completion in July 2024.

Additionally, the two parties will continue with new business initiatives and establish a task force of professionals for exploiting joint business opportunities in the future.

Speaking at the signing ceremony, Nguyễn Anh Đức, general director of Saigon Co.op, said: “In the current context of an increase in foreign retailers’ participation in the retail market, Saigon Co.op must exert ever greater efforts to serve customers, … delivering them quickly.

“Co-operation with CJ Group marks a strategic step to help Saigon Co.op achieve its goals: developing a warehouse network, investing in infrastructure, equipment and management systems in line with new technology trends in Logistics 4.0 (Automation, Big Data, AI, etc.) to modernise warehouse operations, meet the demand for goods and services, reduce costs, increase productivity, revenues and profits, and move towards a ‘logistics profit centre’ model – an independent logistics company that not only serves Saigon Co.op's retail networks but also provides services to other customers.

Kim Kwon-woong, head of CJ Logistics Asia Pacific unit, said “Through our experience in distribution logistics across various product categories and the application of automation technology, we aim to strengthen cooperation with Saigon Co.op by improving its logistics efficiency and stability.” — VNS