Listed logistics enterprises attract foreign capital

Logistics businesses attract the attention of foreign investors, especially after the disruption of supply chains, recovering demand and increasing freight rates.

Viettel Post has just switched to listing on HoSE. Photo : Duc Thanh

Attractive prospects

Vietnam’s logistics industry is very promising, but domestic enterprises in the industry are less competitive than foreign corporations. Many domestic enterprises do not have enough resources and will choose to “sell themselves” and the buyers are often foreign partners because of the attractive growth prospects of this industry in Vietnam.

This is the sharing of the leader of a logistics company specializing in providing transportation and cold storage, which is preparing documents to register for trading on the UPCoM floor. This company is listed on the stock exchange to fulfill its commitment to shareholders, the PE fund that has invested in the company for many years, and when the deadline comes, they will "exit". The ownership ratio of the founder and senior leaders will be maintained to ensure the right to decide on the company's strategy and development direction.

According to the above leader, outside partners are always welcome, but the company has no intention of selling a controlling stake. “I have the profession, understand the company’s prospects and values, so mobilizing resources for development is always in the plan, but selling the company is not,” he said.

In the warehousing sector - considered the most attractive segment in Vietnam's logistics industry, both foreign and domestic investors have stepped up activities to meet the growing demand due to the wave of factory relocation to countries outside of China, especially in the face of the vibrant e-commerce trend.

FiinGroup forecasts that there will be about 25 projects entering the market in the period of 2024 - 2027, adding 1.87 million square meters of net leasable area. With the recovery of the economy and the increasing demand for high-quality storage solutions, the Vietnamese warehouse sector is forecast to continue to attract significant investment in the coming time.

The prominent names in this field are Mapletree, SLP, JD Property, Gemadept and Transimex... Foreign investors account for nearly 75% of the market share in terms of net leased floor area. In terms of shareholder structure, there is a differentiation in the ownership ratio of foreign investors. At Gemadept, foreign shareholders account for about 48%, at Hai An it is less than 4%, Viconship 1.6%, SCSC is 27.1%.

Attraction in the stock market

Gemadept is regularly invited to attend meetings with foreign institutional investors organized by leading securities companies. In addition to impressive business results, this enterprise is always highly appreciated by shareholders, investors and domestic and foreign financial funds for its corporate governance, technological innovation and green development.

Gemadept is a leading enterprise in the port exploitation and logistics industry of Vietnam, with an output of more than 3 million Teu in 2023. The enterprise owns a chain of ports along the North - Central - South, with a variety of types from dry ports to river ports, sea ports, especially the deep-water port Gemalink that can accommodate the largest Megaship generation ships today.

Viettel Post's VTP shares have attracted attention with their impressive price increases, up more than 41% compared to the beginning of the year. In 2020, the VTP auction attracted 13 registered investors, including 10 foreign institutional investors, 2 domestic organizations and 1 individual investor. The number of orders was 7.4 million VTP shares, 1.5 times the offering amount, of which foreign investors registered to buy 6.14 million units.

Viettel Post maintains its cash flow attraction because it is positioned as a high-tech logistics enterprise. This enterprise is focusing all its resources on promoting investment in developing delivery and logistics activities, with the goal of increasing its market share to 19.5% by the end of this year, and at the same time planning to deploy and build a national logistics system.

The strong catalyst for VTP shares is the information that Viettel Post has signed a cooperation agreement with the authorities of Nanning City and Pingxiang City of China to build two logistics centers in these cities, helping to reduce the connection time between Guangxi and Hanoi , reduce logistics costs for traded goods, and lay the first foundation for the process of building and exploiting the delivery network in China and neighboring countries of Viettel Post in the future.

Vietnam Logistics Conference 2024

The 2nd Vietnam Logistics Conference 2024 with the theme "Transformation for breakthrough" organized by Investment Newspaper under the auspices of the Ministry of Planning and Investment will take place on Thursday, October 31, 2024 at JW Marriott Saigon Hotel (82 - Hai Ba Trung, District 1, Ho Chi Minh City).

With the participation of more than 300 domestic and international guests, the Conference will analyze and discuss in depth the most pressing issues of the industry, such as new challenges and trends, modernizing logistics infrastructure, enhancing supply chain efficiency, promoting digital transformation, and developing new logistics business models.

Source: https://baodautu.vn/doanh-nghiep-niem-yet-logistics-hut-von-ngoai-d226363.html