NYK Line, a provider of global logistics, land, ocean and air transportation services, said earlier this week it has received clearance from the Vietnamese government to establish a joint venture with the Vietnam Ocean Shipping Agency (VOSA) to provide shipping and logistics services.

Under the terms of the agreement, NYK will be own 51 percent of the joint venture, and VOSA will own 49 percent. The organizations submitted $400,000 to the Vietnamese government to open its office in Ho Chi Minh City in January.

NYK spokesman Atsushi Matsumoto told Logistics Management that prior to this joint venture, NYK only had a representative office in Vietnam and was not permitted to conduct any business transactions. But, he said, when the office opens in January, it will be allowed to conduct ocean liner business transactions. He added that this endeavor gives NYK the opportunity to strengthen its liner and logistics-related business efforts, as well as provide opportunities to invest in container ports.

Other benefits of this joint venture will include building terminal and harbor facilities, purchasing Vietnam-made vessels and making upgrades to the Cap Mep-Thi port.

“Buyer consolidation activities will start growing in Vietnam [which is a major benefit for Vietnam-based and global shippers]…and those retailers that use our consolidation service will have the same services available that NYK offers in China,” said Matsumoto.

Along with collaborating with VOSA, earlier this year NYK announced it plans to invest $200 million over the next five years on various shipping and transportation projects in Vietnam.