Vietnam rose three places to eighth in this year’s global index of emerging logistics markets, after establishing itself as a favoured manufacturing hub.
According to Retail News Asia, Vietnam scored 5.67 out of 10 overall in the 2021 Agility Emerging Markets Logistics Index, published by the leading logistics company Agility.
Agility ranks 50 economies on three factors that make them attractive to logistics providers, freight forwarders, shipping lines, airlines and distributors: domestic logistics opportunity, international logistics opportunity, and business fundamentals.
Vietnam performed well on international opportunity, ranking fourth globally. It ranked 18th on domestic logistics opportunity and 21st on business fundamentals, which cover the legal environment, credit and debt dynamics, contract enforcement, protection against corruption, price stability and market access.
“Vietnam has made strides as a manufacturing destination as a handful of companies have sought to reduce their reliance on Chinese manufacturing, driven by the US–China trade conflict, rising costs and the Covid-19 crisis,” the report said.
Vietnam’s three-place rise to eighth shows it contained the spread of the virus effectively, positioned itself skilfully to attract manufacturers looking to leave China, and holds an enviable investment pipeline across several sectors, including fashion and electronics. The report expects Vietnam’s rise to continue into 2022.
China remains the world’s leading emerging logistics market, followed by India. Indonesia (3rd) and Malaysia (5th) are the South-East Asian countries ranked above Vietnam.
According to the latest survey by the Vietnam Logistics Business Association, the country has around 30,000 logistics companies, of which 4,000 are foreign-owned.
The industry has grown 12–14% a year and is now worth USD 40–42 billion.
Duy Khoi
