UPS helps boost trade growth

Jeff McLean, UPS Vietnam’s general manager

Samsung, Nokia and LG have recently announced greater investments in Vietnam. How do you view Vietnam’s current position in the global hi-tech electronics manufacturing supply chain?

Vietnam has successfully positioned itself as a major contender for hi-tech production, ranking 12th globally last year in terms of hi-tech export share as compared to 24th in 2000. In addition to offering competitive wages and an educated workforce, the Vietnamese government is also focused on growing the industry by attracting foreign investment to upgrade infrastructure, encourage technological innovation and develop intellectual capital. While Vietnam has proved itself to be an attractive manufacturing destination for the assembly of hi-tech goods, we are also seeing a stronger push to move up the value-chain towards the production of more complex components and spare parts.

How can logistics companies in Vietnam meet the requirements of those electronics manufacturers?

Hi-tech manufacturers have the uphill task of maintaining a competitive balance in managing service, cost and product quality. In today’s competitive global business environment, it is imperative that hi-tech organisations develop a well-designed supply chain to remain competitive and respond to the needs of a more demanding customer.

These are some of the challenges faced by the industry, and the areas whereby third-party logistics providers, such as UPS, can add value. As companies look for more efficiency, growth, and market leadership, they are reconsidering their models, with increasing focus on outsourcing their non-core activities in order to better concentrate on what they do best.

To effectively support hi-tech companies in meeting their business goals, logistics companies will need to have global and regional reach, be reliable, flexible and innovative with their solutions. In a globalised economy with complex supply chains, logistics companies will also need to meet international supply chain standards in areas such as supply chain security and compliance to facilitate international trade.

As both local and global logistics players in Vietnam are competing in terms of delivery costs and time, how is UPS working with hi-tech customers to help them integrate more effectively into the global supply chain?

Companies should view their supply chains as a key strategic tool, and seek to engage with logistics partners like UPS to implement transformative supply chain strategies to drive business goals. Through our working experience of over 100 years with major international corporations across various sectors, UPS has accumulated in-depth knowledge about customers around the world and industry best practices.

Hi-tech companies can take advantage of UPS’ multi-modal global network serving more than 220 countries and territories, contact logistics services, inventory management, strict security processes, technology tools, customs brokerage expertise and contingency planning to ensure success at every stage of the product lifecycle.

A key strength is our deep expertise of our customers’ vertical industries, which allows us to deliver segment-specific solutions to empower our customers despite their different business needs. UPS works with customers to develop a strong partnership, working as an extension of their business.

UPS last year became the first wholly-owned foreign logistics company in Vietnam. How has the new investment status strengthened your business operations here?

Our move to become wholly-owned last year is a testament to UPS’ commitment to Vietnam, and we remain focused on delivering world-class solutions to customers and continuing to grow our business profitably.

One of the biggest advantages of becoming wholly-owned in Vietnam is that it has allowed us to become more nimble in adapting our operations to market conditions. This market is rapidly evolving, and we have been investing in intelligence and developing solutions for other fast-growing segments such as retail, car manufacturing, healthcare, in addition to hi-tech, where few companies can match our ability to provide the sophisticated services that these shippers demand. Moving forward, it is of critical importance that we stay ahead of these changes, and continue to be the strategic logistics partner that helps businesses connect in an evolving global marketplace.

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