The International Monetary Fund (IMF) is forwarding a $70 million financial package to Vietnam-based lndo Trans Logistics Corporation (ITL), the media reported.
This is the International Monetary Fund’s first investment in Vietnam’s logistics sector.
High logistics costs impact the overall cost of doing business and negatively affect Vietnam’s competitiveness both globally and domestically.
Kyle Kelhofer, IFC country manager for Vietnam, Cambodia, and Lao PDR told the media, “This is why, despite uncertainties amid the ongoing pandemic, the IFC is steadfast in its commitment to support essential investment in Vietnam’s logistics supply chain to help facilitate more efficient and competitive trade.”
He added, “The IFC’s investment in companies like ITL aims to support the growth of domestic private logistics firms capable of providing comprehensive and efficient logistics services. This will help improve the sector’s capacity to serve the growing higher value-added manufacturing and processing industries, which require a more sophisticated, efficient, and lower-cost logistic function.”
According to reports, around 95 percent of service providers in Vietnam’s logistics sector are local small- and medium-sized enterprises with modest operations and lower competitiveness. Due to the pandemic, the logistics sector have been dealt the heaviest blow worldwide.
Ben Anh, chief executive officer at Indo Trans Logistics told the media, “The IFC’s long-term funding and international expertise, especially in the context of the current pandemic, is a highly valuable support which will certainly enable us to improve the efficiency of the ITL’s existing logistic assets and to expand our network and business portfolio to better serve our customers.”