CJ Logistics doubles down on Vietnam with full takeover of joint venture unit

Executives of CJ Logistics and Gemadept pose for a commemorative photo at CJ Building in Ho Chi Minh City, Wednesday. Courtersy of CJ Logistics

CJ Logistics is tightening its hold on Vietnam’s fast-growing logistics sector, taking full control of a key joint venture as it pivots away from shipping toward higher-margin contract logistics.

The company said Wednesday that it would acquire the remaining stake in its Vietnam-based affiliate, CJ Gemadept Logistics Holding, as part of a broader restructuring agreement with its longtime partner, Gemadept.

The deal will give CJ Logistics 100 percent ownership of the unit, while transferring its stake in a separate shipping business back to Gemadept, effectively splitting the two operations and allowing each company to focus on its core strengths.

CJ Logistics and Gemadept had jointly operated two entities since 2018: CJ Gemadept Logistics Holding, which oversees logistics operations, and CJ Gemadept Shipping Holding, which handles maritime transport. Before the restructuring, CJ Logistics held 50.9 percent of the logistics unit and 49 percent of the shipping unit.

The agreement calls for a stake swap, with CJ Logistics taking the remaining 49.1 percent of the logistics unit and ceding its 49 percent stake in the shipping arm to Gemadept, leaving each with full ownership and independent control.

The restructuring reflects CJ Logistics’ strategy to concentrate on contract logistics, a segment that has seen rapid growth alongside Vietnam’s expanding manufacturing and consumer markets.

According to Expert Market Research, Vietnam’s logistics market is projected to reach about 75 trillion won ($56 billion) in 2025, with annual growth averaging around 15 percent in recent years. The expansion of industries such as consumer goods, retail, electronics and chemicals has increased demand for integrated supply chain services beyond basic transportation and storage.

CJ Logistics said it plans to accelerate investment in logistics infrastructure, including new distribution centers, while deploying advanced technologies developed by its TES logistics research institute in Korea to improve productivity and scale.

A company official said the stake swap reflects a “selection and focus” strategy that allows both firms to concentrate on areas where they hold a competitive edge. “We will actively transfer our core, or warehouse and distribution, capabilities to Vietnam and grow together with local customers,” the official said.

Founded in 1990 as a state-owned enterprise and later privatized, Gemadept has grown into one of Vietnam’s leading logistics providers, with operations spanning inland transport, international shipping, warehouse management and port services.

After entering Vietnam in the 1990s, CJ Logistics has expanded its presence by leveraging Gemadept’s nationwide network and infrastructure, building out a full-service logistics platform in one of Asia’s most dynamic markets.

This article was published with the assistance of generative AI and edited by The Korea Times.