Best Starts Express Delivery in Vietnam; Stock Jumps 5%
Best continued its expansion in Southeast Asia after establishing in Thailand last year.
The stock in Best Inc. (NYSE: BEST) rose 31 cents by Friday afternoon, to $5.28 per American depositary share, after the company announced the launch of its Vietnam business.
The Hangzhou-based logistics company said in a statement today that it now provides express parcel delivery in Ho Chi Minh City.
"Our entry into Vietnam is an exciting milestone for our global strategy. We hope that our technology-enabled solutions will contribute to the advancement of logistics and digital economy in Vietnam and across the region," Johnny Chou, Best's founder, chairman and chief executive officer, said in the statement.
The company added that it plans to set up seven warehousing centers across Vietnam and is building the first in Ho Chi Minh in partnership with BW Industrial.
The move marks Best's 19th venture overseas as it continues its global expansion in Southeast Asia, the company said.
Best began to branch out overseas in 2015 and by 2018 operated an international parcel service delivering across the United States, Germany, Australia, the U.K. and Spain. It also set up operations in Thailand, where e-commerce has been developing, as reported by the Bangkok Post in December 2018.
Alibaba Group Holding Ltd. (NYSE: BABA) has been one of Best's largest shareholders, holding a stake of 23%.
In 2017, Best raised $450 million in a downsized IPO in New York, priced at the lower end of the company's expectations, Reuters reported.
Founded in 2007, Best focuses on big data, information technology, digitalization, artificial intelligence and last-mile delivery service, Chou said in May at the 2019 Global Smart Logistics Summit in Hangzhou. He added that Best is taking advantage of opportunities the fast-growing e-commerce in lower-tier cities in China