Shipping giant UPS deployed a large investment in logistics networks in Vietnam

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The UPS Supply Chain Solutions (SCS) division said that it would invest more in the Vietnamese market with the transition to a fully owned UPS model, creating new jobs in HCMC and Hai Phong.

Hãng vận tải khổng lồ UPS triển khai đầu tư lớn vào mạng lưới logistics tại Việt Nam.

Shipping giant UPS deployed a large investment in logistics networks in Vietnam.

President of UPS’s global logistics, logistics and distribution division in Asia-Pacific, Mr. Sebastian Chan said, in the context of the global pandemic continuing to develop complicatedly, many companies have chosen cut down the costs. However, UPS has chosen to operate in a different direction in the Vietnamese market: focusing on investment in smart logistics networks.

Accordingly, thanks to the wave of FDI shifting to Vietnam, which has increased the number of production orders for export, many carriers have invested more supply chain solutions to take advantage of this trade opportunity.

Mr. Sebastian Chan added that by the end of 2019, Vietnam was recognized as one of the fastest growing economies in Southeast Asia for three consecutive decades. In 2020, Vietnam also won the “war” against the Covid-19 pandemic, becoming one of the few prominent highlights of the region.

Recently, Vietnam has also signed EVFTA – an important trade agreement with the European Union, aiming to eliminate 99% of tariffs between the two sides. This has helped Vietnam once again assert its strategic position in the regional and global supply chains.

According to a survey by McKinsey, nearly 25% of fashion supply chain executives want to increase production in Vietnam more than in other Asian countries.

Foreign investment in Vietnam in the two manufacturing and processing sectors in recent years has recorded a significant increase. These are also the industries that require a strong operation of logistics. Besides, the rapid increase in domestic consumption created a boom in Vietnam’s logistics industry.

As a result, UPS’s supply chain solutions (SCS) division in Vietnam has transformed to a fully owned UPS model. This transformation has created 45 new jobs in Ho Chi Minh City and Hai Phong, along with a warehouse rental service up to 15,000m2 in Cat Lai ports in Ho Chi Minh City and the North of Hai Phong city.

In addition, the transformation will also provide local businesses more opportunities to directly access UPS’s air freight network, connecting more than 14,000 departures and destinations, plus Modern infrastructure is built to accommodate the transportation of goods of all sizes on 2,300 direct routes.

Currently, UPS’s SCS division provides international air and sea freight services. Combining multilateral shipping can save Vietnam about 35% compared to shipping only by air, 55% faster than standard sea freight service.

Finally, the UPS representative concluded: “Strengthening the presence of supply chain solutions in Vietnam is a very important milestone, marking UPS’s long-term commitment to Vietnam can help customers capture new growth opportunities with innovative, comprehensive and cross-cutting supply chain solutions.

Source: ndh.vn – Translated by fintel.vn