UPS forms JV in Vietnam
UPS and P & T Express have established UPS Vietnam as a joint stock company to expand UPS’s footprint in Vietnam. Through the Ho Chi Minh City-based joint venture, UPS will invest in new facilities in key commercial and industrial centres across Vietnam to widen access to growing intra-Asian capability and connect to the global UPS network. UPS will extend its express pickup and delivery service to 63 provinces in Vietnam and will also offer later pick-up and cut-off times. Terms of the deal were not disclosed. The new company will be a convenient single source for Vietnamese businesses to use UPS express and expedited small package services as well as the company’s transportation and supply chain capabilities, including freight forwarding, customs brokerage and contract logistics warehousing and distribution. According to UPS, immediately after Vietnam joined the World Trade Organisation in 2007, US exports to Vietnam alone grew by 73% to reach US$1.9 billion, and the US is Vietnam’s biggest trading partner after China. Vietnam’s GDP is expected to grow by 6.2% this year and 6.9% in 2011. UPS began its services in Vietnam in 1994 with VN Post as its service agent, a position that P & T Express took over when it was established in 2006 as a wholly owned subsidiary of VN Post. |
