[PangyoTechnoValley] Coconut Silo services cargo transportation brokerage platform in Vietnam

– Provides one-stop cargo mobility solution from transportation to dispatch and payment

– Focuses on acquiring global customers in ASEAN countries beyond Vietnam

Coconut Silo started as Hyundai Motor Group’s H Startup and spun off in June 2020. Now, it is servicing cargo transportation platform in Vietnam. The company provides faster and cheaper transportation services by connecting consumers to logistics companies and truck drivers upon the request for cargo transport. In the beginning of the business, the company had targeted Korean companies in Vietnam, and its business model had been verified for the excellence in the Vietnamese market. Based on this, it is expanding its cargo transportation platform service to ASEAN countries like Singapore, Philippines, Thailand, Malaysia, and Indonesia, focusing on making global customers.

Coconut Silo is a startup founded in March 2020 after completing the development of the “cross-border logistics intermediary platform” that has been running for two years since 2018. This platform service matches cargo owners (corporates, individuals) and truck owners (corporates, individuals) wanting to transport domestic and international cargo in the ASEAN market including Vietnam by using mobile apps or web, taking care of transport, dispatch, and payment at once.

Coconut Silo CEO Kim Seung-yong said, “Vietnam is bordering with neighboring countries like Laos, Cambodia, Thailand, and China, so cargo can be transported over land, but the logistics service was inefficient and unsystematic because it was not made into a platform, making it difficult to do the export/import tasks.” He then explained, “We are taking over the market by providing services to those who need cargo that moves through ports, including major industrial complexes in southern Vietnam and international cargo transportation through land, and small and medium-sized enterprises that do not have their own logistics infrastructure.”

Currently, the cargo transportation market in Vietnam is worth 11.1 trillion won and is growing continuously by more than 20% every year. “The Vietnamese cargo transport market is in the early stages of the ICT platform implementation,” said CEO Kim, adding, “Many companies that have factories in the industrial complex in Vietnam have factories in neighboring countries, so the demand for international cargo is high.”

Providing the first cargo transport intermediary platform service in Vietnam, Coconut Silo was evaluated positively by the local community in that it improved work efficiency by improving the unnecessary multi-step structure of the existing transport intermediary process, and contributing to stimulating the cargo import and export business with neighboring countries. Kim said, “We are developing an algorithm for efficient cargo transportation for higher user profitability compared to competitive platforms. We will continue to improve and advance our platform services so that our platform can evolve into a cross-border logistics platform that encompasses the entire ASEAN countries.”

With this, Coconut Silo seeks to build a cooperation system with local companies and foreign companies other than Vietnam and ASEAN countries, and develop new business models based on related industrial infrastructure and human networks to develop its business. For this, Coconut Silo is establishing corporations in Vietnam, the US, China, and India. Also, it is developing a separate item in cooperation with Daimler Truck Korea with the aim of commercialization in the first half of 2021.

Coconut Silo is in its ninth months in the business, and it has been awarded the Grand Prize in the Jeju Public Data Utilization Startup Contest, MSS Minister’s citation (Grand Prize) for young people contest, in a contest where young people lead youth, and MSIT Minister’s citation for Mobile Technology Grand Prize, proving that it is a startup that has secured innovative ideas and technology in Korea. Particularly, the company was also ranked as one of the TOP 5 companies in CodeLaunch, a major startup competition in the US held in July. This achievement is the first not only in Korea but in Asia as well.

Kim said, “We have established a base in Pangyo because it is easy to do networking, technology exchange, and information sharing. Above all, many companies with outstanding technologies are willing to start new businesses in Pangyo, so it is good for the company in the sense that we can cooperate mutually.” As the last word, he said, “We expect to be able to communicate and cooperate closely with these startups in Pangyo without any distance or physical restrictions.”