Vietnam ranks 11th out of 50 emerging logistics markets

Vietnam ranks among the top 11 emerging logistics markets in the world and fourth in Southeast Asia, according to Agility's ranking.

Logistics and transportation service provider Agility has just released a list of the world's 50 most attractive emerging logistics markets. In which, Vietnam ranks 11th out of 50 emerging logistics markets.

In Southeast Asia, Vietnam is behind Malaysia, Indonesia and Thailand but ahead of the Philippines, Myanmar and Cambodia. Compared to the list published by Agility last year, this year, Vietnam dropped 3 places from 8th to 11th.

The logistics market in Vietnam has a lot of potential for development.

Agility's ranking of emerging logistics markets is evaluated based on four criteria including: domestic logistics opportunities, international logistics opportunities, digital indicators, and business principles.

Specifically, in terms of domestic logistics opportunities, Vietnam is assessed 5.02 points, ranked 18th, unchanged compared to 2021. According to the World Bank, GDP growth in Vietnam is forecasted to increase sharply from 2.6%. in 2021 to 7.5% in 2022. This is expected to open up domestic logistics opportunities for businesses.

In terms of international logistics opportunities, Vietnam ranks 4th in the world and is evaluated as a country with the leading logistics development potential in Southeast Asia. This ranking is explained by international businesses looking to diversify their supply options and reduce their dependence on the Chinese market.

According to statistics of the Ministry of Planning and Investment, as of December 2021, the manufacturing sector leads the way with a total investment of over 18.1 billion USD, accounting for 58.2% of the total registered investment capital. In 2021, in the manufacturing sector, Foxconn will increase its total investment in Vietnam to $2.2 billion and recruit 1,000 more workers during its operation.

In addition, low labor costs help maintain Vietnam's strengths in the textile and footwear sectors. Currently, Nike has 200 factories and Adidas is operating 76 factories in Vietnam market. The strengths are analyzed by Agility when assessing the international logistics potential in Vietnam.

Other indicators in Agility's report such as business principles and digital index ranked 20th and 14th respectively. Despite facing difficulties during the pandemic, Vietnam's logistics industry still thrived by taking advantage of the efficiency of the economy. enterprises in the Free Trade Agreements. Economic growth, domestic production and consumption, and the boom in e-commerce have brought real opportunities to the industry.

Phi Hung ( Source:Agility)