UPS becomes 100 percent wholly-owned in Vietnam
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.
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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 AuthorJeff 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. Contact Jeff Berman
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