Sumitomo tapping port operation business in Vietnam
HO CHI MINH CITY, NNA - Major Japanese trading house Sumitomo Corp. is tapping port terminal operations in Vietnam by jointly acquiring a 10 percent stake in local integrated logistics service provider Gemadept Corp. with two other Japanese partners.
Sumitomo said Tuesday it will purchase the stake for an undisclosed sum via its Vietnamese joint venture with Japan Overseas Infrastructure Investment Corp. for Transport & Urban Development, a government-backed infrastructure fund, and Japanese transporter Suzuyo & Co.
Gemadept owns and operates seven ports such as Nam Hai port in the northern city of Hai Phong, Dung Quat port in central Vietnam, Phuoc Long port in Ho Chi Minh City and Binh Duong port in the southern province of Binh Duong, according to Sumitomo's statement
The local firm has a 12 percent share of the domestic container cargo market by volume in 2018, making it the second-largest container terminal operator in the Southeast Asian country.
Vietnam has seen rising logistics demand on the back of its rapid economic growth while productions have been relocated to the country amid the lingering U.S.-China trade row.
The Japanese trader has secured a board member seat at Gemadept and is set to form business alliance with it, aiming to boost efficiency in logistics services linking the ports to industrial parks across the country it operates, the statement said. (NNA/Kyodo)