Japan-based Yusen Logistics Co., Ltd. recently announced they have created Yusen Logistics (Lao) Co., Ltd. in Lao People’s Democratic Republic. The new division of the Yusen Group is set to commence operations in January 2019.
Laos which as a landlocked country surrounded by Cambodia, China, Myanmar, Thailand and Vietnam is expected to receive an increase in demand for logistics solutions as the country becomes a strategically located hub at the heart of the Mekong region, connecting the surrounding countries.
Along with the initial investment from Japan and China, many foreign companies that have already started operations in Thailand as Thailand+1 are attracting attention.
While the GDP growth rate in Lao has continued at around 7 per cent over the last few years, high economic growth rates are continuing.
Yusen Logistics (Thailand) Co., Ltd. Opened in 2014 and since then has provided logistics services to Lao through their network of distributors, however, the company felt that the time was now right to establish the Lao Corporation due to the anticipated demand for logistics in line with the projected economic growth in the region.
The new division will help bolster Yusen’s sales capabilities in anticipation of rising demand for logistics, along with creating efficient and seamless operations. Head Office will be located in the Lao capital of Vientiane, with a satellite branch in Pakse. The new Lao operation will offer customers in the region a wide scope of logistics services, such as cross-border truck transportation, ocean and air freight forwarding, domestic delivery, and customs clearance along with warehousing and logistics consultancy services.