IFC provides a US $ 70 million loan to a Vietnamese logistics company
IFC, a member of the World Bank Group, will provide a $ 70 million loan to In Do Tran Shipping and Forwarding Company (ITL Corp) with the aim of supporting the development of the logistics industry, thereby promoting trade and enhancing the competitiveness of the economy in the context of the Covid-19 pandemic.
IFC’s financing package – Vietnam’s first investment in logistics – was right at a time when long-term funding was scarce due to the impact of the pandemic.
This loan will help ITL Corp, one of the leading domestic logistics companies in Vietnam, transform and grow by adding assets, developing new warehouses and facilities, and deploying new advanced information technology system.
Furthermore, this investment will enable ITL Corp to provide customers with higher quality and integrated logistics services, including domestic manufacturers and SMEs.
“IFC’s long-term funding package with international expertise, especially in the current pandemic context, is a very valuable support that will surely help us improve the efficiency of our logistics system. and expanding ITL Corp’s network and business portfolio to better serve customers, ”said ITL Corp’s General Director Ben Anh.
In addition, IFC will also help the company improve environmental, social and corporate governance standards for sustainable development.
Vietnam’s logistics industry has seen strong growth in recent years, partly due to record high levels of foreign investment, mainly in manufacturing and processing – two industries that require strong logistics operations. – the same boom in domestic consumption.
However, the logistics industry is still fragmented with over 95% of service providers being domestic small and medium enterprises with modest operating scope and low competitiveness.
As a result, only a few foreign invested companies are leading the market and providing high value added services. In this context, the government is implementing a comprehensive plan to boost the competitiveness of domestic logistics companies.
High logistics costs increase general business costs and negatively affect Vietnam’s competitiveness both globally and domestically. “Therefore, in the context of the world economic fluctuations caused by the Covid-19 pandemic, IFC still decided to invest in Vietnam’s logistics supply chain in order to enhance the efficiency and competitiveness of its operations. trade, ”said Mr. Kyle Kelhofer, IFC Country Director for Vietnam, Cambodia and Laos.
IFC’s investment in companies such as ITL Corp is intended to support the growth of private domestic logistics companies capable of providing efficient and comprehensive logistics services. Mr. Kyle Kelhofer said the investment will help improve the industry’s capacity to meet the needs of integrated, cost-effective, and cost-effective logistics services in value-added manufacturing and processing industries. Vietnam’s rapidly growing taller