A.P. Moller Capital expand portfolios in logistics and transportation

This investment, executed through a proprietary bilateral process, is AP Moller Capital's second investment in the air cargo sector and its first entry into Vietnam's transport sector, building upon investments already made in the country by the fund's renewables platform, Verdant Energy. It represents a significant opportunity to capitalise on Vietnam's rapidly growing trade with international markets and reflects AP Moller Capital's strong conviction in the country's long-term economic fundamentals.

The investment marks the launch of a broader platform strategy in Vietnam's transport and logistics sector by AP Moller Capital in partnership with VinaCapital, one of Vietnam's largest investment management companies, through its logistics platform (LogiVest Ltd).

ALS Cargo Terminal (ALSC) is a leading air cargo handling company operating at Noi Bai International Airport in Hanoi, with a strong market position and a reputation for high-quality service among major international airlines including Korean Air, Emirates, and Cathay Pacific.

The terminal currently handles up to 250,000 tonnes of cargo annually, with plans to expand to meet growing demand.

ALSC is marking the third investment in South and Southeast Asia from AP Moller Capital - Emerging Markets Fund II (Fund II), where the fund is targeting 50 per cent of its deployment in the region.

According to Jens Thomassen, partner at AP Moller Capital, gaining access to this sector requires trust, local partnerships, and a proven ability to deliver.

“Our heritage in global transport and long track record of building infrastructure businesses in high-growth markets were key to opening that door. We are now focused on unlocking ALS Cargo Terminal's potential through automation and process optimisation, strategic expansion, pricing and contract enhancements, and a strong focus on sustainability and environmental, social, and governance (ESG) initiatives, what we call doing well by doing good,” said Thomassen.

Don Lam, CEO and founding partner of VinaCapital, commented that the improvements of infrastructure and logistics in Vietnam are critical to continued robust economic growth.

"We are pleased that the inaugural investment of our partnership with AP Moller Capital is in ALSC, a leader in air freight logistics at Noi Bai International Airport. We look forward to working with the management team, which has built an exceptional business, and helping them take the company to even more success," said Lam.

Phung Tien Toan, founder of Aviation Logistics Corporation (ALS), said that the company welcomes the investment from AP Moller Capital and VinaCapital, who offer not just capital but a combination of global expertise, local knowledge, and best practices, especially around ESG.

“This partnership and investment will enable ALS and ALSC to continue to expand and strengthen our position at Noi Bai and play a leading role in Vietnam's logistics growth,” said Toan.

The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close by the end of Q3.

AP Moller Capital, drawing on over 120 years of AP Moller Group's industrial heritage and a culture of hands-on value creation, has built a strong track record of successful transport businesses and a well-established presence in Asia, supported by its dedicated Singapore-based team that is actively expanding its investment footprint across South and Southeast Asia. AP Moller Group has been active in Vietnam since 1923.

VinaCapital is one of Vietnam's largest investment managers, with over 20 years of experience of investing across all major asset classes. VinaCapital has more than 200 professionals in Ho Chi Minh City, Hanoi, and Singapore, and this is the first investment it has made as part of its logistics platform in partnership with AP Moller Capital.

AP Moller Capital, drawing on over 120 years of AP Moller Group's industrial heritage and a culture of hands-on value creation, has a track record of building successful transport businesses globally

VinaCapital funds performed well in 2024 The 2024 funds market report released by fmarket, a marketplace for open-ended funds in Vietnam, revealed that the VinaCapital Modern Economy Equity Fund (VINACAPITAL-VMEEF) was the best-performing open-ended fund in the market last year, with a return of 34 per.

Investor sentiment rise can lead to wins Overall investment are good prospects for Vietnam this year. Michael Kokalari, the chief economist for VinaCapital, talked to VIR's Bich Ngoc about the prospects of foreign investment in Vietnam and the company's investment strategy in 2025.

VinaCapital Vietnam Opportunity Fund divests from Tam Tri Medical VinaCapital Vietnam Opportunity Fund (VOF), the London-listed closed-end fund managed by VinaCapital, announced on June 9 that it has sold one of its top five holdings, its stake in Tam Tri Medical JSC (TTMC), Vietnam's leading private healthcare network, to a dedicated healthcare private equity firm based in South and Southeast Asia.