VIETNAM LISTED AMONG WORLD’S TOP 10 EMERGING LOGISTICS MARKETS

Vietnam has jumped three spots to eighth from 50 countries in the global freight forwarder Agility’s ranking of Emerging Market Logistics Index 2021

Accordingly, China remained the world's leading emerging logistics market followed by India, while Indonesia ranked in third position. Qatar and Turkey ranked behind Vietnam in 9th and 10th position. Among ASEAN countries, Indonesia ranked third, Malaysia ranked fifth, Vietnam ranked 8th, Thailand ranked 11th, Philippines ranked 21st and Cambodia 41st.

Vietnam’s handling of the Covid-19 pandemic has been one of the most successful globally. “The steps taken by Vietnam in 2020 have propelled it into the top 10 ranking in 2021 – its rise of three positions to 8th is the fastest ever in the top half of the Index and has displaced regional partner Thailand in the top 10.”, Agility wrote.

The report added that in recent years, Vietnam has added significant hi-tech manufacturing capacity, helping attract investment from producers higher up the value chain as costs in China increase. Avoiding additional costs associated with the US-China trade war has added further motivation for manufacturers to choose Vietnam.

However, the report pointed out that investment and the arrival of new businesses has created challenges.

According to the Action Plan to improve competitive capacity and develop Vietnam’s logistics services by 2025, the contribution of logistics services to GDP will reach 5-6%, the growth rate of logistics services will be at 15-20%, the logistics outsourcing rate will reach 50-60%, logistics costs will decrease to 16-20% of GDP, and the industry ranking on the LPI index (national logistics capacity index) will be more than 50 .

Source: VCCI

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