Leading Thai logistics group JWD to expand into Indonesia, Vietnam
Leading Thai logistics group JWD to expand into Indonesia, Vietnam
Thailand’s JWD Infologistics Pcl expects to make acquisitions in Indonesia and Vietnam, part of plans to expand in the region to tap growing demand and boost growth, its chief executive said on Wednesday.
The company expects to buy one third of a cold storage company in Indonesia later this year, and a majority stake in a Vietnamese freight forwarding company early next year, CEO Charvanin Bunditkitsada told reporters. He did not name the companies.
Both deals are worth a combined about 400 million baht ($12 million), he said.
Logistics and fractured supply chains remain a challenge for businesses in the $2 trillion regional economy. Scattered urban centers, archipelagos, and poor infrastructure development present an opportunity for companies that can offer solutions.
Burgeoning industries in Southeast Asia like e-commerce that rely on efficient logistics also increases demand for providers.
JWD, which has operations in Myanmar, Laos and Cambodia, joins others in expanding into the region. Last month, DHL Supply Chain said it was investing 70 million euros in Southeast Asia.
JWD has about 5 billion-6 billion baht in loans, bonds and asset sales to support future expansion, he said, without elaborating.
The company expects double-digit revenue growth next year after completing domestic and foreign acquisitions, Charvanin said. The company expects 12-15 percent of revenue to be generated abroad next year, up from the current 10 percent.
