JWD InfoLogistics Pcl. or JWD has already completed the deal to hold 23.66% of the shares of Transimex Corporation, the 3rd largest integrated logistics service provider in Vietnam. JWD received the right to hold one seat on the Board of Directors of Transimex and can expect to see profit sharing from its investment starting from the second quarter of 2019, which will support its performance this year. JWD is confident in the overall outlook of the logistic industry in Vietnam over the next five years since it shows a trend for continuous growth.
Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and CEO of JWD, ASEAN top specialized supply chain solutions, revealed that the Board gave approval for JWD Asia Holding Private Ltd., a subsidiary in Singapore, and Prosper Logistics Joint Stock Company, a subsidiary in Vietnam, to purchase 23.66% of shares in the Transimex Corporation. Transimex offers an integrated service that provides land, water and air logistics in Vietnam. It is registered in the Ho Chi Minh Stock Exchange and has assets worth that places it among the top 500 firms in the country. An investment of 527.4 million baht (or about 390 billion Vietnamese dong) was made and the shares have already been transferred. JWD also received the right to hold one position in the Board of Directors of Transimex Corporation. This was a big and important investment which will expand JWD’s business to cover nine countries in ASEAN within the year.
The investment is expected to benefit JWD's performance this year as it will start to receive profit sharing according to the shareholding ratio in Transimex Corporation from Q2/2019. At present Transimex is the third largest integrated logistics service provider in Vietnam which last year earned revenues of around three billion baht and a net profit of 300 million baht. It is expected that the company will continue to see growth this year.
The Transimex Corporation has been operating since 1983 and its main businesses include Inland Container Depots and Distribution Centers (ICD & DC), logistics and transportation, freight forwarding & shipping agency, and logistical real estate. It has a combined total service area of about 400,000 square metres and a logistics network that is strong and will help to build a strong business base in Vietnam.
The Chairman of the Executive Committee and CEO of JWD said that one factor for investing in Transimex Corporation is to expand the logistics service business in Vietnam. This is one of the company’s target for business expansion in ASEAN since Vietnam has good growth potentials, with an economy that is in the expansion phase and is an important production base in this region. It will have continuously growing demands for logistics services and from 2019 to 2024 the outlook for the logistics service and import-export agent business is expected to see an average growth of 14-16% a year, an excellent prospect.
“We consider that the investment in Vietnam will not only be good for expanding the logistics service but will also help to support our plan to branch out into food services because Transimex Corporation recently entered into the cold storage business and is one of the logistics providers offering an integrated service. In the future we can further cooperate to expand to other types of logistics services such as storage of chemical products, dangerous goods and motor vehicles with which JWD has expertise and long operational experience in Thailand,” Mr Charvanin said.