In 2019, although the logistics industry has faced many challenges due to the impact of the world economic downturn, ITL has still steadily overcome the headwinds and become one of the 10 most reputable companies in the transportation and logistics industry of 2019.
VIR recently has an interview with COO of ITL – Chairwoman of Amcham Ho Chi Minh City – Ms. Amanda Rasmussen to understand more about the effort on maintaining the success as well as the business strategy of ITL in the near future.
|Ms. Amanda Rasmussen|
What were the challenges that ITL had to overcome under the effect of the world economic downturn during 2019?
Many sectors and companies faced challenges resulting from real or perceived potential world economic downturn in 2019. What we did see in the logistics industry and specific to this market, was a cooling off of transportation volumes in terms of volume growth compared to the last 2-3 years. Equally, we saw a more balanced equilibrium in terms of supply and demand in logistics resulting in a further downturn in overall rate levels and costs to shippers and importers globally. Domestically, Vietnam enjoyed greater than average GDP growth globally, closing 2019 with an estimated +7.02%. Ultimately, these challenges resulted in price pressure and greater competition in terms of market share.
What did ITL do to overcome the headwinds and affirm the position in the local and regional industry?
The key for ITL will be focusing on core businesses and customers to protect our existing market share while ensuring that we continue to deliver best in class levels and achieve our expected growth levels. Disruption and uncertainty are a key part of the challenges we face in the industry today locally and regionally and to overcome these challenges, we must remain focused and committed to our strategy. For ITL, we saw the launch of new domestically focused business units such as our new distribution business in 2018 and warehousing business in 2019. This enabled us to continue to benefit from our international play but also ensure we were in the right position to leverage on domestic growth. Equally, we have positioned ourselves to be a leader in international e-commerce cross border logistics which is a major game-changer and growth area in the industry.
|Amanda believes that the industry in Vietnam will remain steady in 2020|
What are the achievements of ITL that help bring the company into Top 10 most reputable companies in the transportation and logistics industry of 2019?
I believe the areas mentioned earlier such as the launch of new business units to diversify our product base and better ensure our strategic position in the industry as well as focus on key areas to strengthen our business such as our technology platform, customer-centric business model, health & safety initiatives and equally our employee well-being and CSR activities. In 2019, we launched our partner facility with Saigon Newport (SNP) in Binh Duong, which is not only the largest multi-user in the area at 51,000 sqm but also considered to be state of the art in comparison to other existing facilities in Southern Vietnam. We are heavily expanding across Vietnam in this area including complement products and services. We continue to invest in not only our capability and assets but our people as well. We consider ITL as a family and with a special DNA that sets us apart from the competition. Our vision is to be the ‘National Champion’ in the logistics industry in Vietnam as local hero also possessing the ability to compete internationally. This platform of technology, people and customer centric-focus are central to this strategy.
|“ITL will continue its vision of National Champion”, Amanda|
How will the Vietnam and global logistics industry be in 2020, as well as in the next 5 and 10 years, according to your prediction?
I believe that the industry in Vietnam will remain steady in 2020 and remains to be expected to be one of ASEAN’s top performers in 2020 resulting from positive developments and gains in industrial production, domestic consumption, and exports. The domestic economy continues to be a buffer against the potential slowing of the global economy or more localized offsets resulting from China/U.S. trade tension and potential to impact Vietnam due it its growing trade surplus. That said, the country is still expected to grow at a healthy 6.6% in 2020 and 6.5% in 2021.
Globally, I believe we will continue to see a balanced supply and demand in 2020 however with the potential impact of disruptors and global e-Commerce trade, we may see this change in the coming 12-24 months and beyond. Of course, Vietnam is vulnerable to the impacts of changes in the global economy and trade tensions. Looking ahead, growth should remain well above the ASEAN average due to fast-developing domestic demand, ongoing FDI, the manufacturing sector as well as even the growing tourism sector.
What will be ITL vision and strategy in the near future to catch the trend and overcome the upcoming challenges?
Our core focus is to provide the most integrated and innovative transportation, aviation and e-Commerce logistics services with mutual respect and extreme goodwill to those we serve.
Moreover, ITL will keep expanding cooperation with the strategic partner SNP and Maple Tree to keep up with the trend of developing and serving customers and partners better. In 2020, also celebrating 20 years of establishment and development, ITL will have more breakthrough developments.
It is said that ITL will invest 70 million USD more in 2020. What will this be for, ma’am?
The investment will be to further strengthen our position as a leading player in the Vietnam and Indochina market through further M&A activity and asset development. I believe the market will hear and see more of ITL in the near future as we expand our footprint and capacities.
Vietnam is expected to be the Air transport HUB of the region soon. Which role will ITL play in this important trend, and how will ITL contribute to the domestic and regional air logistics?
ITL will play a central in this area by leading the development of this new offering for Vietnam together with the industry leaders, customers, partners, local agencies and our own asset development. We will focus on this development not only on Air but also on Sea transport as well. This has a significant opportunity for the domestic and regional market by not only creating new revenue for Vietnam but equally allowing this volume to move closer to such an important center of gravity as an exporting and even importing market.
ITL is aiming to the goal of National Champion – becoming the leading logistics company of Vietnam and the region, as well as the ITL of 500 million USD in the next 2 years. Base on the current potential and position, why not a further goal for ITL, ma’am?
The goal of ITL as a 500 million USD company in the next 2 years is already ahead of our initial plan for this period due to our results over the last several years. This is our short-term goal. We believe the further goal is achievable and the market remains very exciting and buoyant long term in Vietnam. We look forward to sharing these plans and outcomes with the market, our customers and our partners soon.
Thank you, Ms. Amanda Rasmussen for sharing the interesting information about ITL and the Logistics industry.
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