Saigon Co.op and CJ Group sign strategic cooperation agreement on cargo transport

Saigon Co.op and the CJ Group signed a strategic cooperation agreement on cargo transport on January 30, which is expected to establish a leading cargo transportation unit in Vietnam based on the strengths of the economies of both Vietnam and South Korea to promptly meet all customer needs.

The cooperation aims to explore the joint development and operation of Saigon Co.op’s warehouse project in the west of Ho Chi Minh City, specifically the Saigon Co.op Warehouse Project towards West Ho Chi Minh City - Le Minh Xuan 3 Industrial Park. This project, part of Saigon Co.op’s warehouse cluster, began construction in October 2023 and is expected to be operational in July. It is designed to ease the pressure and risks of east-facing warehouses, enhancing the planning of the investment and reinvestment of a favorable warehouse system, zoning areas serving supermarkets / stores, and optimizing freight routes to reduce transportation costs. The Saigon Co.op Warehouse in West Ho Chi Minh City is equipped with semi-automation technology, progressing towards full automation, ensuring a sustainable supply chain to support the strategic development of Saigon Co.op’s retail network.

Following the Saigon Co.op Warehouse Project in West Ho Chi Minh City - Le Minh Xuan 3 Industrial Park, the two parties will continue to cooperate on new solutions, including innovative ideas and business cooperation models. Simultaneously, they will build a team of professional experts to seek and exploit future cooperative opportunities.

Mr. Nguyen Anh Duc, CEO of Saigon Co.op, said that in the current retail market landscape, with the increasing presence of foreign retailers, Saigon Co.op must exert greater effort in serving customers, ensuring not only quantity and product quality but also providing rapid delivery to customers.

Cooperating with the CJ Group is a strategic move that will help Saigon Co.op achieve its goals of expanding its network of warehouses and investing in infrastructure, equipment, and management systems aligned with new technology trends in logistics 4.0 (automation, big data, AI, etc.). This modernization aims to enhance warehouse operations, meet the demand for cargo services, improve productivity, increase revenue, reduce costs, and boost profits, moving towards the “Logistics profit center” model - an independent logistics company that not only serves Saigon Co.op’s retail models but also provides services to partner customers.

“Saigon Co.op is a partner of potential for the CJ Group and CJ Logistics to maximize the best logistics technology from South Korea and the capabilities of TES - technology, engineering, systems - and advanced solutions,” said Mr. Kim Kwon-woong from CJ Logistics. “In technology - accelerating future warehouse operations, in engineering - designing optimized models for the entire supply chain management process, and in systems and solutions - providing comprehensive end-to-end solutions with the latest technologies.”