UPS has bought out minority shareholder VN Post Express to gain full ownership of its Vietnambusiness as it builds up operations in the fast-growing Asian economy.
The US group announced today that it has become the first global express delivery company to bewholly-owned in Vietnam following its acquisition of the 49% interest of VN Post Express in the twocompanies’ express delivery joint venture.
UPS set up the joint venture with VN Post Express, a Vietnam Post subsidiary and its localagent, in 2010 with the aim of gradually investing in new facilities and improving its services inthe country.
UPS said it has enjoyed solid growth in Vietnam since it started its operations in 1994. Withthe country’s increased economic activity last year, UPS Vietnam’s export volume growth grew bymore than 20% in 2012.
“We are excited about this new opportunity,” said Brendan Canavan, UPS Asia Pacific President. “With UPS now wholly-owned in Vietnam, our customers in this growing market are better connected tothe world through the UPS global network. We would also like to thank the government of Vietnam forits support in recognising express delivery services as an enabler of trade and commerce. ”
UPS said the takeover of the minority stake would allow it to better connect Vietnam’s rapidlyexpanding economy to world markets through the UPS network. In total, UPS has some 265 employeesand 58 vehicles in Vietnam and operates flights to Hanoi and Ho Chi Minh City.
The company has invested in new facilities and technology in key commercial and industrialcentres across Vietnam, including Ba Ria, Binh Duong, Hai Duong and Bac Ninh provinces. The newcenters are strategically located in key business districts where there is a high demand forlogistics services. They provide Vietnamese businesses and exporters in these areas greater accessto UPS logistics services and capabilities.
In addition, UPS has made other significant investments in Vietnam during the last two yearsincluding the introduction of a Preferred LCL (less-than-container-load) Ocean Freight service thatprovides service that is up to 40% faster than traditional LCL services to the United States fromthe port of Ho Chi Minh City. In 2012, enhanced shipping and tracing solutions – such as InternetPickup and UPS Quantum View Manage – were made available in Vietnamese on UPS.com.
“UPS has served Vietnam since 1994, offering its wide range of logistics solutions tomultinational corporations and small and mid-sized enterprises alike,” said Jeff McLean, GeneralDirector of UPS Vietnam. “We have seen the transformation of the country to the dynamicexport-oriented economy it is today and UPS has grown in parallel with the market. Wholly-owned operations will give us the flexibility to further expand our operations and grow inpartnership with Vietnamese businesses.”
