ITL accelerates investment post-pandemic

Investment in internal resources to accelerate

Despite the industry’s long stagnation and disrupted supply chain, ITL keeps investing in new assets and upgrading its transportation fleet with 60 prime movers imported from UD Trucks, a Japanese truck company incorporated by Volvo and Nissan. This showed a sustainable development strategy, unaffected by external forces, and the solid financial potential of the leading logistics group in Vietnam.

Huynh Minh Sang, branch manager of the Road Transport Centre and representative of ITL, gave his remarks at the handover ceremony for the prime movers

“Investing in freight vehicles will help ITL strengthen its transportation capacity in the forthcoming time to approach large-scale projects and customers, including new foreign-invested enterprises with enormous potential,” said Huynh Minh Sang, branch manager at the Road Transport Centre and representative of ITL at the handover ceremony.

After receiving these 60 new UD Trucks, ITL has increased the number of vehicles to 250 prime movers, more than 500 trailers, and nearly 100 trucks of all kinds, distributed at its major transfer stations across Vietnam.

The handover ceremony of 60 prime movers between ITL and Nam Han Company took place in Binh Duong province

At the end of March, the company kicked off the construction of the Danang ITL Logistics Centre, valued at approximately $8.7 million in an area of more than 31,000 square metres. In the first phase, the office and warehouse occupy more than 18,660sq.m while the cold storage covers 5,200sq.m with a capacity of more than 10,000 pallets.

With exceptional infrastructure and services, the Danang ITL Logistics Centre has become one of the key contributions to the development of Danang as a regional logistics hub.

ITL continues to invest in facilities and applies modern technology to foster its cold storage system, aiming for 50,000 pallets capacity and becoming a leading cold storage service provider in the Vietnamese market in 2022-2023.

With solid internal capacity, in 2021, ITL has achieved a growth rate of 150 per cent compared to 2020 and maintained its second ranking among transportation support service providers among the 500 Largest Enterprises in Vietnam, going up 92 ranks on the list. ITL also went up 148 places in the Top 500 Most Profitable Enterprises in Vietnam, Top 50 Vietnam The Best, and the Top 10 Most Prestigious Logistics Companies in 2021.

According to Ben Anh, CEO of ITL, the primary momentum for the company’s constant growth is the internal empowerment strategy. ITL has agilely responded to new market requirements and invested in technical equipment and state-of-art technology and human resources.

Sustainable development strategy

Established in 2000, ITL provides services and solutions, general agent services for airlines, warehousing services, international freight forwarding, and import and export freight forwarding, leveraging a nationwide transportation network.

From 2012 to 2017, ITL made its first transformation, becoming a leading logistics enterprise in Vietnam. The year 2022 marks an important milestone in the group’s second transformation period from 2019 to 2024 to become an influential enterprise pioneering the domestic logistics industry in the region.

ITL plans to invest more in logistics infrastructure and effectively avail new services such as cold chain, international trade, and energy. Moreover, the company strategy encompasses technology transformation and integrated transportation to optimise operational expenses, improve work efficiency, and fulfill the needs of large enterprises.

One of ITL’s long-term strategies focuses on green values, such as developing green distribution centers using solar energy and wind power and investing in energy-efficient vehicles.

ITL aims at green transportation and protecting the environment when choosing means of transport

For example, the choice of UD trucks was based on their fuel-efficient engine and Euro 4 emission standard. At ITL, technical management is prioritised to reduce environmental emissions and ensure sustainable development criteria.

More than 80 per cent of Vietnam’s logistics industry businesses are small and medium, making it difficult to compete with foreign enterprises. The country’s logistics costs remain relatively high, accounting for more than 20 per cent of the country’s total GDP, much higher than the global average of 11-12 per cent. ITL’s long-term investment efforts are aimed at helping the Vietnamese logistics market grow more sustainably.