Two Japanese international freight forwarders expanded their operations into Indochina, a Southeast Asian region sandwiched by two Asian giants -- China to the east and India to the west.
“K” Line Logistics said that it established a new subsidiary in Hanoi, Vietnam’s capital, to further expand its operations in the country by “offering improved quality and closer service to customers.”
In Vietnam, the company previously had only representative offices in Hanoi and Ho Chi Minh City, the country’s commercial hub.
The new subsidiary, “K” Line Logistics Vietnam is capitalized at $300,000. It is a joint venture with Hanoi-based Marina Logistics and Agencies. “K” Line Logistics owns a 51 percent stake in the joint venture and Marina Logistics and Agencies holds the remaining 49 percent stake.
“K” Line Logistics Vietnam will open for business on May 16. It will also open a branch office in Ho Chi Minh City on June 1.
The company is the logistics arm of Kawasaki Kisen Kaisha (“K” Line), Japan’s third-biggest shipping firm by group sales, after Nippon Yusen Kabushiki Kaisha (NYK Line) and Mitsui O.S.K. Lines (MOL).
The establishment of the new subsidiary in Vietnam brought the number of “K” Line Logistics’ overseas subsidiaries to 19.
Meanwhile, Yusen Logistics, the logistics arm of NYK Line, also said that it opened a new representative office in Phnom Penh, Cambodia’s capital, to “provide even greater customer satisfaction” in the country, which has the potential for “dramatic” growth in the future.
Yusen Logistics already has a subsidiary in Vietnam.