The Associated Press May 11, 2010, 11:56AM ET

UPS announces joint venture in Vietnam

UPS announced a new joint venture in Vietnam on Tuesday, a country with an expanding economy where the shipping company sees opportunity for growth.

UPS Vietnam, a partnership with P&T Express, will offer express pickup and delivery service to 63 provinces.

Economic growth has averaged more than 7 percent annually over the last decade in Vietnam, and per capita income has risen from $400 in 2000 to $1,000 today.

In Hanoi, the capital and Ho Chi Minh City, where UPS' joint venture is based, income is about double that.

"With this joint stock company and the strong relationship we have with our local service partner, UPS gains greater flexibility to grow transportation and logistics capabilities in Vietnam," said Derek Woodward, president of UPS's Asia Pacific Region.

Financial terms were not disclosed.

United Parcel Service Inc. launched service in Vietnam in 1994 with VN Post as the service agent. P&T Express was created in 2006 as a wholly owned subsidiary of VN Post to take over work with UPS.

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