Lotte Global Logistics and Korea Ocean Business Corporation recently signed a memorandum of understanding to boost global logistics supply chains and introduce eco-friendly shipping solutions.

The MOU was signed in Ho Chi Minh City on May 10 by Lotte Global Logistics CEO Kang Byong-ku and KOBC CEO Kim Yang-soo.

To improve its global logistics capabilities, Lotte Global Logistics plans to invest approximately KRW500 billion (US$364 million) in various projects over the coming years.

The funds will be injected into constructing a cold chain logistics center in Vietnam, setting up logistics hubs in Hungary and other Eastern European locations, deploying ammonia-fueled ships for sustainable maritime transport, and investing in specialized containers.

LOTTE Global Logistics will support Korean businesses to enhance their competitiveness in the field of import and export through improving global logistics infrastructure, said Kang.

LOTTE Global Logistics Vietnam, a subsidiary of Lotte, the RoK’s largest food business group, has operated cold storage for rent with a capacity of 25,000 pallets at Long Hau industrial park in Long An province, southern Vietnam, since 2008. LOTTE Global Logistics has planned to expand its operations to other provinces in the Mekong Delta region, including Vinh Long and Dong Nai provinces.