Apr 30, 2012

Vietnam - Korea-backed CJ Group jumps into Vietnam


CJ Group has further big plans for Vietnam following a $73.6 million controlling stake purchase of Vietnam’s leading cinema owner and film distributor.

The investment into Megastar Media Company will be conducted via the business cooperation contract signed between CJ GLS, one of its member companies and CT Land, a member company of CT Group, one of leading logistics developers in Vietnam. Under the agreement, CJ GLS will corporate with CT Land to develop and operate CT Land’s logistics projects in Binh Duong province, Danang City and Bac Ninh province.

Tran Kim Chung, chairman of CT Group, said that CJ GLS invested at least $20 million for facilities and machines into the 18,000 square metre Song Than logistics zone, located at the 7.64 hectare Song Than complex zone in Binh Duong province, while CT Land poured about $12 million to develop the logistics zone’s basic infrastructure.

Chung said the 18,000sqm Song Than logistics zone was opened in 2012’s first quarter. The alliance between CT Land and CJ GLS was part of a plan to expand a 8,000sqm logistics zone nearby the existing Song Than logistics zone, construct the 30,000sqm logistics area in Bac Ninh province and the CT Song Than Danang logistics zone in Danang.

CT Land’s expected investment capital for the logistics area in Bac Ninh province and Danang City was $15 million and $8 million, respectively, according to Chung. Chang Bok Sang, president of CJ GLS Vietnam did not reveal CJ GLS’ total investment in the above logistics zones, but was expected to be larger than CT Land’s investment.

“The market is bigger than expectation and still offers golden opportunities for professional foreign logistics and supply chain management service providers,” said Sang. With total logistics services are available across the globe with 71 partners and 25 own subsidiaries in 12 countries, CJ GLS is considered as one of the world’s leading logistics and supply chain management service providers. In Vietnam, CJ GLS provides container transportation, warehousing, products export, and inland transport in Ho Chi Minh City and Hanoi.

Due to Vietnam’s geographical landscape, the company plays an important role in connecting the north and the south through container transportation. In Hanoi, its major business is in air freight forwarding for portable telecommunications equipments for multinational enterprises and constantly expanding our air freight services. Currently, an exclusive air cargo charter is being operated once a week from Hanoi to Singapore, North Africa, Turkey, Middle East, and other countries.

In addition, CJ GLS also provide freight forwarding, ground transportation, and warehousing services.

Thanh Thuy | vir.com.vn



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