Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Falling one place to 11th inthe global index of emerging logistics markets, Vietnam was still seen as aclear winner in the US-China trade war.
According to the recently released 2020 Agility EmergingMarkets Logistics Index, with an overall score of 5.52 out of 10, Vietnam fellbehind several Southeast Asian peers, including Indonesia (4th), Malaysia (5th)and Thailand (9th).
As the world’s leading logistics company, Agility, ranked 50countries by factors that make them attractive to logistics providers, freightforwarders, shipping lines, air cargo carriers and distributors. The threefactors considered in the ranking were: domestic logistics opportunities,international logistics opportunities and business fundamentals.
At the same time, China remains the world's leading emerginglogistics market, followed by India and the United Arab Emirates (UAE).
Slipping one place, the report stated that Vietnam performedwell in international opportunities, ranking fourth globally, while it stood21st in domestic logistics opportunities and 20th in business fundamentals,which includes regulatory environment, credit and debt dynamics, contractenforcement, anti-corruption safeguards, price stability and market access.
The report said: "Vietnam and Indonesia also saw theirinternational logistics opportunities scores improve, with gains made via acombination of volumes won as manufacturers switched production locations fromChina, as well as moderate increases in domestic demand."
Despite leading its Southeast Asian peers in the businessfundamentals sub-index, Malaysia followed Vietnam, Indonesia and Thailand ininternational logistics opportunities.
Malaysia saw sea freight exports to the US rise 24 percent inthe first eight months of 2019 as a result of the trade war, but its wider seafreight market remains small by comparison with its neighbours which each havea sea freight market around three times larger.
The group of six markets identified by survey respondents ashaving the most potential as future logistics markets was unchanged in 2020,with India and China maintaining a marked lead and Vietnam still third thanksto its improved infrastructure and domestic market in recent years, in additionto the export growth it has seen as trade shifts from China.
Though fewer survey respondents this year suggested SoutheastAsia as a region would benefit from the US-China trade war, most of them thoughtthe benefit was narrowing to a few markets, adding that Vietnam – both in termsof survey sentiment and trade data – emerged as a clear winner.
If businesses are going to relocate from China, Vietnam andIndia are the most likely investment destinations, according to 48 percent ofthose surveyed. Mexico and Cambodia were the lowest rated relocation optionsamongst survey respondents.
The report also said: “While growth in some regional marketsremains robust – including key export markets like Vietnam as well as in morenascent manufacturing locations such as Cambodia – export growth has slowed.”
According to the Vietnam Logistics Business Association'slatest survey, there are around 30,000 logistics companies in the country,including 4,000 international ones.
The industry has been growing at 12-14 percent annually andis now worth 40-42 billion USD./.
According to the recently released 2020 Agility EmergingMarkets Logistics Index, with an overall score of 5.52 out of 10, Vietnam fellbehind several Southeast Asian peers, including Indonesia (4th), Malaysia (5th)and Thailand (9th).
As the world’s leading logistics company, Agility, ranked 50countries by factors that make them attractive to logistics providers, freightforwarders, shipping lines, air cargo carriers and distributors. The threefactors considered in the ranking were: domestic logistics opportunities,international logistics opportunities and business fundamentals.
At the same time, China remains the world's leading emerginglogistics market, followed by India and the United Arab Emirates (UAE).
Slipping one place, the report stated that Vietnam performedwell in international opportunities, ranking fourth globally, while it stood21st in domestic logistics opportunities and 20th in business fundamentals,which includes regulatory environment, credit and debt dynamics, contractenforcement, anti-corruption safeguards, price stability and market access.
The report said: "Vietnam and Indonesia also saw theirinternational logistics opportunities scores improve, with gains made via acombination of volumes won as manufacturers switched production locations fromChina, as well as moderate increases in domestic demand."
Despite leading its Southeast Asian peers in the businessfundamentals sub-index, Malaysia followed Vietnam, Indonesia and Thailand ininternational logistics opportunities.
Malaysia saw sea freight exports to the US rise 24 percent inthe first eight months of 2019 as a result of the trade war, but its wider seafreight market remains small by comparison with its neighbours which each havea sea freight market around three times larger.
The group of six markets identified by survey respondents ashaving the most potential as future logistics markets was unchanged in 2020,with India and China maintaining a marked lead and Vietnam still third thanksto its improved infrastructure and domestic market in recent years, in additionto the export growth it has seen as trade shifts from China.
Though fewer survey respondents this year suggested SoutheastAsia as a region would benefit from the US-China trade war, most of them thoughtthe benefit was narrowing to a few markets, adding that Vietnam – both in termsof survey sentiment and trade data – emerged as a clear winner.
If businesses are going to relocate from China, Vietnam andIndia are the most likely investment destinations, according to 48 percent ofthose surveyed. Mexico and Cambodia were the lowest rated relocation optionsamongst survey respondents.
The report also said: “While growth in some regional marketsremains robust – including key export markets like Vietnam as well as in morenascent manufacturing locations such as Cambodia – export growth has slowed.”
According to the Vietnam Logistics Business Association'slatest survey, there are around 30,000 logistics companies in the country,including 4,000 international ones.
The industry has been growing at 12-14 percent annually andis now worth 40-42 billion USD./.
VNA
