UPS eyes opportunities in Vietnam's free trade zone, airport projects

Leading global shipping and logistics firm UPS is eyeing business opportunities at the Danang city-based free trade zone and the Long Thanh International Airport in Dong Nai province.

UPS is interested in learning more about Danang Free Trade Zone and Long Thanh International Airport, said Michael Kielly, president of global government affairs at UPS, at a meeting with Vietnam's Minister of Industry and Trade Nguyen Hong Dien in Hanoi last Friday.

Prime Minister Pham Minh Chinh in mid June approved the establishment of Danang Free Trade Zone (FTZ), which will cover approximately 1,881 hectares.

Danang, a tourism and economic hub in central Vietnam, will also be home to an international financial center. The parliament in late June issued a resolution that okays the development of one international financial center located in both Ho Chi Minh City and Danang.

Long Thanh International Airport, located about 40 kilometers east of HCMC, is a mega project with a total investment of VND336.63 trillion ($14.12 billion) that will be built in three phases. It is set to welcome the first plane to make landing or take off this year.

During the meeting, Kielly also informed Minister Dien about the response of UPS customers to the U.S. imposing reciprocal tariffs on countries. He proposed solutions to support Vietnamese small and medium enterprises (SMEs) in coping with these changes.

Dien said he appreciates the efforts and contributions of UPS in supporting Vietnamese export enterprises over the past time.

Regarding UPS’s proposal on solutions to support SMEs in Vietnam to adapt to the tariff context, the Minister said such solutions will not only help reduce the burden of costs and procedures for SMEs but also provide them with necessary tools and knowledge to adapt to and develop in a challenging international trade environment.

"This affirms the important role of large logistics corporations in supporting trade promotion and the global business community," he told Kielly.

Regarding UPS's proposal to support Vietnam in seizing opportunities from supply chain diversification and trade shifts, the Minister emphasized that Vietnam has a golden opportunity to become a more important link in the global value chain.

He suggested UPS accompany the country in promoting the application of science and technology, innovation, and digital transformation in logistics activities.

The Minister emphasized that the Vietnamese Government is ready to create favorable conditions for businesses, especially large corporations like UPS, to implement initiatives to support SMEs, promote digital transformation in logistics, and develop high-quality human resources.

Dien added that his ministry is finalizing a draft strategy for Vietnam's logistics service development for the period 2025-2035, with a vision to 2050.

Accordingly, one of the guiding viewpoints is to develop logistics services and connect deeply and widely to the global supply chain and value chain, based on the application of science and technology, innovation, digital transformation, green transformation, and international integration.

Dien said he believes that with its global experience and extensive expertise, UPS will be a strategic partner in supporting Vietnam to build an effective and modern free trade zone model, promoting trade, investment, and supply chains in the region.

UPS, with revenue in 2023 reaching $91 billion, has presence in more than 220 countries and territories.

Leading courier services provider FedEx is seeking to boost activities in Vietnam, especially in the expanded Tan Son Nhat and Noi Bai airports and the under-construction Long Thanh and Gia Binh airports.

Fedex founder and chairman Frederick Smith made the statement at a meeting with Party General Secretary To Lam on February 25.

FedEx can help Vietnam improve its logistics capacity and further integrate with the global supply chain, the executive noted. Vietnam can develop into a key logistics hub of the region and the world, he added.