Update: 15:38 | 20/08/2020
Australian company Logos plans to invest $350 million in the logistics real estate segment in Vietnam to take advantage of rising demand in the country.
It has established Logos Vietnam Logistics Venture, a joint with an unidentified global investor.
Logos said in a statement that it wants to develop logistics real estate in Ho Chi Minh City, Da Nang and Hanoi to cover the entire country.
A logistics complex of Logos in Auckland, New Zealand.
The company’s managing director and Co-CEO, Trent Iliffe, said: "Being able to establish this new venture in the midst of the Covid-19 pandemic is testament to Vietnam’s exciting growth story, which is driven by the global trade wars, decentralization of supply chains and a natural evolution of this market."
Logos said Vietnam’s significant growth in e-commerce makes it an attractive market for investors and customers alike.
The country has seen growing competition in e-commerce between local players like Tiki and Sendo and Singapore’s Shopee and Lazada in recent years. The market grew by 32 percent last year to $11.5 billion, according to the Vietnam E-commerce Association.
Glenn Hughes, head of Logos Vietnam Logistics Venture, said: "The long-term potential of the Vietnam logistics market is supported by strong tailwinds as companies seek to diversify their supply chains across multiple countries and further invest in technology within their facilities to meet the growing demand of e-commerce."
Logos has a portfolio of 100 logistics estates in nine countries.