KUALA LUMPUR (Oct 17): AGX Group Bhd (KL:AGX), which primarily provides third-party logistics services, said its Vietnam-based subsidiary has secured two service agreements with Sun PhuQuoc Airways LLC, marking a strategic entry into the country’s aviation logistics sector.

In a bourse filing on Friday, the company said AGX Logistics (Viet Nam) Co Ltd signed a cargo forwarding and transportation agreement, and a customs brokerage service agreement with the newly launched airline on Oct 16.

Under the terms of the agreements, AGX Vietnam will provide comprehensive aerospace logistics solutions, including aircraft-on-ground (AOG) shipment support, to facilitate Sun PhuQuoc Airways’ operations across Vietnam.

The customs brokerage agreement, which took effect on Oct 16, will be in force for two years, with automatic annual renewals thereafter.

The total contract value for the agreements will be determined by the actual shipment volume. Charges will be based on rates and fees notified by AGX Vietnam on a per-shipment basis.

Sun PhuQuoc Airways is a new entrant to Vietnam’s aviation market, offering both direct and charter flights that connect travellers to Phu Quoc’s resort destinations and other domestic locations.

As of Friday’s close, shares in AGX Group were up one sen, or 2.2%, at 47 sen, valuing the group at RM203.45 million. Year to date, the stock has declined 16%. The company was listed in February 2024.