The Korean Chamber of Business (Korcham) wants to build a large wholesale market to connect local producers with buyers in Seoul and other cities in northeast Asia, including Tokyo and Beijing.

A wholesale market in HCM City.

Hong Sun, the secretary general of Korcham in Vietnam, said the market will cover 300ha and provide information and technology to promote international sales by auction. It will also have hotels and a retail trade centre.

Total capital is estimated to be USD1bn, rising to USD2bn, funded by the governments of South Korea and Vietnam, and private companies. The main trading centre is estimated to cost USD200-400m and is expected to be completed within three years.

Sun said a better distribution system will improve Vietnam's competitiveness.

He said logistical costs in Vietnam are high, accounting for an average 20 percent of costs, which has hindered development in the agriculture sector.