CJ Logistics (000120.KS), South Korea's largest logistics company, is strengthening its logistics business in Vietnam.
CJ Logistics said Thursday it has acquired additional shares in the logistics division of its Vietnam-based CJ Gemadept joint venture to expand its contract logistics (CL) business in the high-growth market. The company had established a joint venture with Vietnamese logistics firm Gemadept, holding 50.9% of GLH (CJ Gemadept Logistics Holding), the logistics arm, and 49.1% of GSH (CJ Gemadept Shipping Holding), the shipping arm.
The two companies recently agreed to restructure their governance by swapping stakes in GLH and GSH. CJ Logistics acquired Gemadept's 49.1% stake in GLH, bringing its ownership to 100%. In return, CJ Logistics transferred its 49% stake in the shipping division GSH to Gemadept.
As a result, CJ Logistics and Gemadept will each fully own and independently manage GLH and GSH, respectively. CJ Logistics plans to use the stake swap as a springboard to accelerate its local logistics operations. Specifically, the company is reviewing investments in logistics center assets and plans to transplant innovative technologies from its domestic TES Logistics Technology Research Center to Vietnam, aiming to boost productivity and strengthen capabilities.
"This stake swap was carried out as a 'select and focus' strategy, with Gemadept and us each taking charge of the business segment we do best," a CJ Logistics official said. "We will actively transplant the competitiveness of our core W&D (Warehouse & Distribution) business to Vietnam and grow into a comprehensive logistics company that achieves mutual growth with local clients."
According to Expert Market Research, a global consulting firm, Vietnam's logistics market is estimated at approximately $52 billion (approximately 75 trillion won) in 2025, having recorded an average annual growth rate of about 15% over several years.
