United Parcel Service (UPS) announced it has become the first global express delivery company to be wholly owned in Vietnam after it acquired the 49 percent interest of VN Post Express in their joint venture.
The acquisition will allow U.S.-based UPS to better tap into Vietnam’s rapidly expanding economy, the company said in a media release.
“We have seen the transformation of the country to the dynamic export-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 in partnership with Vietnamese businesses,” said Jeff McLean, general director of UPS Vietnam.
The company has invested in new facilities in key commercial and industrial centers across Vietnam, including Ba Ria, Binh Duong, Hai Duong, and Bac Ninh provinces, where it said demand for logistics services is high.
And during the last two years it has introduced into the country its express LCL (less-than-container-load) ocean freight service, which is up to 40 percent faster than traditional LCL services from the port of Ho Chi Minh City to the United States.
UPS Vietnam, which started its operations in the country in 1994, saw its export volume grow by more than 20 percent in 2012.