UPS SCS transitions to wholly-owned operations in Vietnam

Investment will bring greater control over operations and service standards

While the global pandemic continues to run its course and many companies are cutting back costs, UPS is looking to do the opposite in Vietnam: Investing for the future in this part of its smart global logistics network. UPS’s Supply Chain Solutions (SCS) unit in Vietnam is announcing its transition to wholly-owned operations, creating 45 new jobs in HCMC and Hai Phong, as well as leasing some 15,000 m2 of storage in the ports of Cat Lai in HCMC, and the northern city of Hai Phong.

From a customer standpoint, the introduction of wholly-owned operations in Vietnam allows UPS SCS greater control over its operations and service standards. This in turn gives local businesses more direct access to UPS’s air cargo network which connects more than 14,000 origins and destinations, in addition to well-established shipping infrastructure which offers service on over 2,300 direct lanes for cargo of nearly any size.

By the end of 2019, the country had seen an almost unbroken run as one of the fastest growing economies in Southeast Asia for three decades, thanks to its reform policies in the 1980s that transformed the mostly agricultural country into a manufacturing powerhouse.

Current 2020 GDP projections for the country are 2.7% as Vietnam continues to run ahead of its neighbours. The country also recently sealed a momentous trade deal with the European Union that will eventually remove 99.0% of tariffs between both markets, affirming Vietnam’s continued strategic position in regional and global supply chains.

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Combined with a decisive Covid-19 containment strategy that has been largely successful, and notwithstanding an emerging second wave, Vietnam is in a prime position for a quick recovery. These are important contributory factors that have shaped UPS SCS’ decision to ramp up its presence in the country.

UPS SCS currently offers international air and ocean freight services with port-to-port and door-to-door options, for both palletised and loose freight shipments across the world. Its multi-modal transportation offering combines ocean and air freight on some of the world’s longest trade routes; and depending on a variety of factors, it can deliver potential savings up to 35.0% over air freight while providing up to 55.0% faster transit times than standard ocean service.

UPS has been in the country since 1994 and UPS SCS’s transition to wholly-owned operations in Vietnam joins its Small Package business, which has been wholly-owned since 2013.


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