Subscribe to our free, weekly email newsletter!


UPS becomes 100 percent wholly-owned in Vietnam

By Jeff Berman, Group News Editor
March 21, 2013

Earlier this week, UPS announced it became the first global express delivery company to be 100-percent owned in Vietnam.

Company officials said UPS has officially acquired the 49 percent interest of Vietnam-based VN Express in the joint delivery venture between the companies, whom initially first partnered in 1994, with VN Express serving at UPS’s authorized agent in Vietnam, prior to establishing a joint stock company in 2010.

UPS said that as part of its global growth strategy, it has invested in new facilities and technology in key commercial and industrial centers across Vietnam, including Ba Ria, Binh Duong, Hai Duong and Bac Ninh provinces. It added that the new centers are strategically located in key business districts where there is a high demand for logistics services and they provide Vietnamese businesses and exporters in these areas greater access to UPS logistics services and capabilities.

“UPS has made significant investments in our infrastructure, services and people in Vietnam and benefited a great deal from the expertise and support of our local partner,” said Jeff McLean, General Director of UPS Vietnam, in an interview. “With UPS volume growth in Vietnam reaching over 20 percent in 2012, we felt that the time was right to establish our own operations in Vietnam.”

And over the last two decades, McLean said UPS has seen the impressive transformation of Vietnam to the dynamic export-oriented economy it is today. In 2012, its GDP grew 6 percent, according to the Economist Intelligence Unit.  He added that as a critical enabler of trade and investment, UPS recognized the need for reliable logistics and express delivery services.

“Furthermore, the liberalization of the express delivery sector in accordance with WTO commitments gave UPS the opportunity to start the process of establishing our own operations in the country,” said McLean. “Having wholly-owned operations gives us greater opportunities to further expand our operations, network and service portfolio to better serve the growing needs of businesses in Vietnam who want to take their business global.”

In terms of customer benefits related to this announcement, McLean said that customers in Vietnam will continue to enjoy the same exceptional customer service they have experienced the last few years, noting that being wholly-owned gives the company a strong platform to apply UPS’s world class management techniques and to invest and expand for the future.

“Customers will have access to UPS’s integrated and extensive network that will enable them to do business globally and leverage UPS’s expertise in logistics and supply chain, including freight forwarding, customs brokerage, and contract logistics warehousing and distribution,” he said. “Our ultimate aim is to improve the customer experience in Vietnam. With our vast global network, innovative technology and comprehensive range of services, UPS is well positioned to provide superior express delivery and logistics solutions to the Vietnamese market.”

UPS has grown its employee base in Vietnam more than tenfold from just 25 in May 2010 to 265 today.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in November was up 3.5 percent compared to October, which was up 0.5 percent over September at 136.8 (2000=100), marking the highest SA on record.

UPS said that through this acquisition it will augment its healthcare expertise and network in Europe, specifically in the fast growing healthcare markets in Central and Eastern Europe.

Carloads were up 12.1 percent at 312,271, and intermodal at 280,337 containers and trailers saw a 4.5 percent annual gain.

Total November POLB volumes were up 2.1 percent year-over-year at 581,514 TEU, and POLA volumes in November decreased 3 percent compared to November 2013 at 663,346 TEU.

When railroads are doing business with a larger than large customer like UPS, it stands to reason, it can often be the best, and worst, of both worlds, depending on how things are going. That was one of the main takeaways from a presentation by UPS Vice President of Corporate Transportation Services Ken Buenker at this year’s RailTrends conference in New York.

Article Topics

News · Global Logistics · UPS · Express · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA