CJ Logistics said on the 1st that it will acquire all the equity in the logistics joint venture (JV) it established with Gemadept, Vietnam's largest local integrated logistics company, and move to reorganize the business.

At the CJ Building in Ho Chi Minh City, Vietnam, Lee Jong-hoon, head of Management Support at CJ Logistics (third from left), Nguyen Thanh Binh, CEO of Gemadept (fourth from left), and officials from both companies pose for a commemorative photo at the signing ceremony for the Gemadept logistics-shipping equity transaction agreement. /Courtesy of CJ Logistics

The business reorganization will proceed by swapping the equity of CJ Gemadept Logistics Holdings (GLH), the logistics institutional sector JV the two companies established, and CJ Gemadept Shipping Holdings (GSH), the shipping institutional sector JV.

CJ Logistics acquired and holds 50.9% and 49% equity in GLH and GSH, respectively, from Gemadept in 2018. Of these, it will transfer its GSH equity to Gemadept and receive the remaining 49.1% equity of GLH.

CJ Logistics plans to expand its contract logistics (CL) business, which is expected to show strong growth, through this business reorganization. It will actively review asset investments such as logistics centers and transplant the innovative technologies of the domestic TES Logistics Technology Research Institute.

According to global consulting company Expert Market Research, Vietnam's logistics market size in 2025 was about $52 billion (75 trillion won), recording an average annual growth rate of 15% over several years.

A CJ Logistics official said, "This equity swap was carried out as part of 'selection and concentration,'" and added, "We will actively transplant the competitiveness of our core W&D (Warehouse & Distribution) business to Vietnam."

※ This article has been translated by AI. Share your feedback here.