ITL: national champion of Vietnam logistics industry

At the Logistics Summit 2023 jointly organised by VIR and SLP Vietnam on October 5, managers, experts and business leaders discussed the prospects and challenges of the logistics industry amid green changes in global supply chains.

Addressing the summit, Deputy Minister of Planning and Investment Tran Duy Dong noted that logistics was an important industry, which supports, connects and promotes national socioeconomic development. It also helps Vietnam bolster competitiveness.

In recent years, the Vietnamese government has improved mechanisms, policies and infrastructure to develop this important industry. The country’s logistics capacity has since markedly improved, ranking 64^th out of 160 countries in terms of logistics development and ranking fourth in the ASEAN region after Singapore, Malaysia and Thailand, according to the World Bank.

In 2022, Vietnam ranked 11^th in the top 50 global emerging logistics markets, published by Agility, with an annual growth rate from 14-16 per cent and value of $40-42 billion per year.

At the summit, experts assumed that pandemic and geopolitical fluctuations had created changes in the supply chain, for example transition from globalisation to regionalisation. This requires greater diversity, more reliability and safer. At the same time, sustainable commitments require the logistics industry to quickly go green.

Vietnam is becoming a major manufacturing hub in Southeast Asia. More high-tech factories come on stream, contributing to the resilient trading activities.

The vibrant domestic consumer market also creates needs for comprehensive logistics solutions, helping optimise time and costs.

Vietnam is ready to fulfill the needs with over 3,000 domestic transportation and logistics businesses and about 25 of the world's top forwarding corporations. In particular, with more than 23 years of experience in logistics and freight management, ITL has built a strong position as a national champion in the industry.

In addition to the “National Brand Vietnam Value” award, ITL demonstrates its commitment to continue to invest in Vietnam with an estimated $200 million in warehouses and infrastructure projects. With the ability to access extensive air, rail and sea networks, ITL is among the few to provide comprehensive End2End services to manage and optimise customers’ supply chain.

Alexander Olsen, vice president of Freight Management and Commercial of ITL Corporation, said an important part of ITL's strategy was to combine its 30+ barges, almost 500 trucks and freight solutions into one product, connecting End2End visibility and capacity control to all customers in Vietnam.

This helps ITL optimise the transportation of goods from seaports to final destinations, which is an important part of providing comprehensive logistics services to its customers.

Particularly, with the presence of tech giants such as Samsung, Apple, Foxconn in Vietnam, ITL is ready to provide clean rooms and warehouses specially designed to store microchips and other components for production.

“This is an area ITL is investing heavily in, and I believe Vietnam will succeed in the coming years in developing high-tech manufacturing, especially in the northern region,” Olsen said.

On the other hand, to support the vibrant consumer market and continue the record annual export of agricultural and food products, ITL's cold supply chain is continuously being improved.

It already has a cold chain in the central and is building one in the southern region. ITL has plans to expand into the northern in the forthcoming years.

“ITL will also continue to grow our refrigerated truck fleet and try to create special tailor-made solutions for retail customers, and of course import and export customers,” Olsen said.

Cross-border connectivity and transportation are becoming an important part of the global economy. ITL has expanded its cross-border shipping solutions to meet growing customer needs, including enhancing customs clearance management and optimising processes to reduce time and costs.

In addition, as a champion in logistics and freight management, ITL not only commits to offering exceptional customer services, but also invests in green and sustainable assets.

ITL has been awarded Label Leaf Level 3 by Green Freight Asia (GFA), to recognise its efforts in employing green transportation, with the aim of improving fuel efficiency and reducing carbon emissions in Vietnam.

In addition, the company also invests heavily in prime movers with fuel-efficient engines and meets Euro 4 emission standards to protect the environment.

ITL invests heavily in prime movers with fuel-efficient engines and meets Euro 4 emission

At the discussion panel titled “Creating opportunities for logistics to develop in the future,” Olsen said the company has also installed solar panels in warehouses.

In addition, they combine barge and truck transportation to reduce emissions because the CO2 amount of each tonne of goods on a truck is eight times greater than on a barge. “We are working with other agencies and companies to import the first batches of electric trucks into Vietnam,” he said.

Last but not least, by regularly investing in technology and advanced solutions, ITL demonstrates its commitment to maintaining a pioneering spirit, helping open up the promising ‘path ahead’ for the logistics industry and positively contributing to Vietnam's economy.

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