LVMC Holdings to Launch Total Solution Logistics Company Within the Year

[Asia Economy Reporter Yoo Hyun-seok] LVMC Holdings announced on the 10th that it has decided to integrate the group's maritime and inland transportation logistics, which had been outsourced until now, and plans to launch an integrated logistics company within the year.

LVMC Holdings handles shipments to various business sites on the Indochina Peninsula from countries including Korea, India, China, the United States, Mexico, Taiwan, Indonesia, and Malaysia, totaling about 10,000 40-foot containers annually. This volume is expected to continue increasing alongside sales growth. Additionally, inland transportation volume from production plants in each country to directly operated showrooms, dealers, and customers is about 40,000 units annually. With the launch of the integrated logistics company, it is expected to achieve a large sales volume and quickly surpass the break-even point.

The Indochina Peninsula is home to 250 million people and has an economic growth rate of 7%. Especially since the ASEAN integration in 2016, which expanded human and material exchanges, the volume of goods transported between Vietnam, Thailand, Myanmar, Cambodia, and Laos has been increasing significantly every year. However, a leading logistics company that dominates inland transportation services between these countries has yet to establish a substantial scale. Therefore, LVMC Holdings plans to leverage the economies of scale achieved solely from the group's existing volume to gain advantages in pricing and management competitiveness and actively promote a total solution logistics business covering the entire Indochina Peninsula.

Currently, LVMC Holdings explains that it can offer low-cost services for export volumes in each country by utilizing the fact that containers and trucks arriving in each Indochina Peninsula country often return empty. Furthermore, by utilizing the return of empty trucks used for vehicle deliveries nationwide in each country, it is expected that logistics efficiency can be achieved in regional product deliveries as well.

The company has presented a vision to become the top O2O (Online-to-offline) service provider in the Indochina Peninsula in the long term. This involves creating an online platform for supply and purchase targeting the entire population of the Indochina Peninsula to activate transactions, with goods traded on this platform being delivered to homes using the '4+2 (4 wheel (car) + 2 wheel (motorcycle))' method.

First, the company plans to develop a platform to activate transactions in agriculture and fisheries, which account for more than 60% of the Indochina Peninsula's industries, and later expand to various household products.

Households in the Indochina Peninsula have a culture of cooking at home and eating meals with family. With a high proportion of young people, most couples continue working after marriage, and since distribution networks are not well established, traditional markets are still mainly used.

LVMC Holdings emphasized, "We will provide a platform where verified agricultural and fishery products from across the Indochina Peninsula can be purchased online," adding, "By delivering to homes at prices cheaper than buying at traditional markets based on bulk purchasing and logistics competitiveness, this will contribute significantly to increasing farmers' incomes and improving the quality of life for citizens in each country, as well as enhancing the company's image."

Additionally, by analyzing traded products through big data, the company expects to identify items with continuous sales, which it can directly produce or brand, thereby discovering various future business opportunities. A company official stated, "Having operated in the Indochina Peninsula for 30 years, we believe we understand the culture and lifestyles of each country better than anyone else. Until now, we have focused on businesses such as automobiles and motorcycles, but with production plants completed in each country and showing steady sales and profit growth, this is a stable point to calmly advance the total solution logistics business step by step based on the sales and profits utilizing the existing company infrastructure. In the long term, this can establish a new growth engine for the group."

This content was produced with the assistance of AI translation services.