Viet Nam was featured among the world’s top ten emerging markets by logistics industry performance, according to a recent ranking by global logistics company Agility.
Viet Nam surpassed Thailand to rank tenth by Agility Emerging Markets Logistics Index 2019 with an overall score of 5.48.
The Agility Emerging Markets Logistics Index 2019 examined domestic logistics opportunities, international logistics opportunities and business fundamentals to measure logistics market development of 50 emerging markets.
According to Agility, Viet Nam’s international logistics market was the standout driver of its overall performance in the 2019 index.
“On the international side, Viet Nam has developed real strength. It rates as the fifth largest market for logistics intensive goods trade by value,” Agility’s report wrote. “This advantage is expected to strengthen further as strong growth in both imports and exports is expected over the next five year.”
“Viet Nam’s ability to negotiate and sign new bilateral and multilateral trade agreements has bolstered its ability to access new markets and should see it continue to grow over the longer term too.”
The report said that Viet Nam’s sea freight market also played a key role in strong international logistics performance, adding that the country had a network of more than 160 ports throughout the country with annual capacity of more than 11 million TEU.
It was estimated that Viet Nam’s sea freight market would grow at 15.3 per cent annually to 2022.
Domestically, Viet Nam had solid but not remarkable logistics opportunities in the domestic market, Agility said, adding that both contract logistics and domestic express markets were around US$750 million in value per year with healthy growth rates together with GDP per capita amongst the higher of the 50 emerging markets in the index, reinforcing likely positive development.
However, with the rank of 20th in the business fundamentals which measured regulatory environment, credit and debt dynamics, contract enforcement, price stability, market accessibility and domestic stability, Agility suggested that there was room for further improvement with the need to address regulatory burdens in the logistic industry.
“Building a significant advantage in business fundamentals through regulatory environments which create confidence for investors has proven a viable strategy for driving performance and potential as a logistics market,” the report wrote.
China held the top rank in Agility Emerging Markets Logistics Index 2019 with a score of 8.87, followed by India with a score of 7.39.
UAE, Indonesia, Malaysia, Saudi Arabia, Mexico, Qatar and Turkey were also featured in the top ten. — VNS