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From left, CP Group Senior Vice Chairman Korsak Chairasmisak, CP Group Executive Director for e-commerce Tarin Thaniyavarn, Hyundai Glovis CEO Kim Jung-hoon and Hyundai Glovis Vice President Park Man-soo pose during a memorandum of understanding signing ceremony at Four Seasons Hotel Bangkok (Courtesy of Hyundai Glovis) South Korea’s Hyundai Glovis Co. set up a logistics joint venture in Thailand to expand its business in Southeast Asia.The logistics unit of South Korea’s top carmaker Hyundai Motor Group said on Thursday it has established the JV – Hyundai Glovis Logistics Thailand – with local companies including an auto parts maker and a logistics service provider. It is easier for a foreign company to start a logistics business in the country with domestic partners as the government caps foreigners’ stake in a logistics company at 50%.Hyundai Glovis opened its first Southeast Asian operation in Vietnam in 2019, followed by a unit in Indonesia last year.“We will expand businesses in the ASEAN market based on a triangle formation of Thailand, Vietnam and Indonesia,” said a Hyundai Glovis official, referring to the Association of Southeast Asian Nations – Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Laos, Myanmar and Cambodia.STRONG DEMANDThailand’s logistics demand is strong as the country is the production and distribution base for global carmakers and electronics manufacturers, as well as food companies. The government provides various measures to support the logistics sector, selecting it as one of 12 core industries, Hyundai Glovis quoted Korea Trade-Investment Promotion Agency (KOTRA) as saying.Hyundai Glovis aims to build partnerships with strong local food and logistics firms, establish distribution networks for the automotive industry and seek out logistics business opportunities with global manufacturers there.The company is set to improve the logistics sector of Thailand’s top agro-industrial conglomerate, Charoen Pokphand Group (CP Group). Hyundai Glovis will transport products for CP Group-operated 7-Eleven convenient stores with 150 electric trucks. It will gradually increase the number of the eco-friendly trucks in the next five years as the group needs more vehicles for logistics. The two companies also agreed to develop various business modes for eco-friendly logistics services with electric and hydrogen vehicles, as well as smart services using drones.In addition, Hyundai Glovis plans to transport auto parts produced by Summit Auto Body Industry, one of its local JV partners. The South Korean company is pursuing the business to transport vehicles manufactured by carmakers in the country.Hyundai Glovis is also poised to cooperate with another JV partner Eastern Air Logistics in logistics contractor services for global manufacturers in Thailand.By Hyung-Kyu Kimkhk@hankyung.comJongwoo Cheon edited this article.
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