Logo of Phnom Penh Post newspaper Phnom Penh Post - Vietnam’s logistics wins in continuing Sino-US trade war

Vietnam’s logistics wins in continuing Sino-US trade war

Content image - Phnom Penh Post
Containers at Dinh Vu Port in Hai Phong city, Vietnam. AFP

Vietnam’s logistics wins in continuing Sino-US trade war

Falling one place to 11th in the global index of emerging logistics markets, Vietnam was still seen as a clear winner in the Sino-US trade war.

According to the recently released 2020 Agility Emerging Markets Logistics Index, with an overall score of 5.52 out of 10, Vietnam fell behind several Southeast Asian peers, including Indonesia (4th), Malaysia (5th) and Thailand (9th).

As the world’s leading logistics company, Agility, ranked 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. The three factors considered in the ranking were: domestic logistics opportunities, international logistics opportunities and business fundamentals.

At the same time, China remains the world’s leading emerging logistics market, followed by India and UAE.

Slipping one place, the report stated that Vietnam performed well in international opportunities, ranking fourth globally, while it stood 21st in domestic logistics opportunities and 20th in business fundamentals, which includes regulatory environment, credit and debt dynamics, contract enforcement, anti-corruption safeguards, price stability and market access.

The report said: “Vietnam and Indonesia also saw their international logistics opportunities scores improve, with gains made via a combination of volumes won as manufacturers switched production locations from China, as well as moderate increases in domestic demand.”

Despite leading its Southeast Asian peers in the business fundamentals sub-index, Malaysia followed Vietnam, Indonesia and Thailand in international logistics opportunities.

Malaysia saw sea freight exports to the US rise 24 per cent in the first eight months of last year as a result of the trade war, but its wider sea freight market remains small by comparison with its neighbours which each have a sea freight market around three times larger.

The group of six markets identified by survey respondents as having the most potential as future logistics markets was unchanged in 2020, with India and China maintaining a marked lead and Vietnam still third thanks to its improved infrastructure and domestic market in recent years, in addition to the export growth it has seen as trade shifts from China.

Though fewer survey respondents this year suggested Southeast Asia as a region would benefit from the Sino-US trade war, most of them thought the benefit was narrowing to a few markets, adding that Vietnam – both in terms of survey sentiment and trade data – emerged as a clear winner.

If businesses are going to relocate from China, Vietnam and India are the most likely investment destinations, according to 48 per cent of those surveyed. Mexico and Cambodia were the lowest rated relocation options amongst survey respondents.

The report also said: “While growth in some regional markets remains robust – including key export markets like Vietnam as well as in more nascent manufacturing locations such as Cambodia – export growth has slowed.”

According to the Vietnam Logistics Business Association’s latest survey, there are around 30,000 logistics companies in the country, including 4,000 international ones.

The industry has been growing at 12-14 per cent annually and is now worth $40-42 billion.

VIET NAM NEWS/ASIA NEWS NETWORK

MOST VIEWED

  • Municipal hall releases map detailing colour coded Covid risks by commune

    Phnom Penh municipal governor Khuong Sreng released an official map detailing the red, yellow and dark yellow zones within the city under the new lockdown orders for Phnom Penh announced on April 26. The designation of red, dark yellow and yellow corresponds to areas with high,

  • Inter-provincial travel ban lifted; Phnom Penh and Takmao not exempted

    The government on April 25 decided to lift the inter-provincial travel ban and the closure of tourist attractions across the country, effectively immediately. The travel ban and closures of all resorts were imposed on April 6 and 17 respectively in a bid to curb the spread of Covid-19,

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • Phnom Penh, Takmao lockdown extended for another week

    The government late on April 26 announced an extension of lockdown in Phnom Penh and adjacent Takmao town in Kandal province for another seven days – or longer if residents do not comply with Covid-19 preventive measures and the community outbreak does not subside – until May 5. According

  • Gov't mulls extension of Phnom Penh, Takmao lockdown

    The Inter-ministerial National Commission for the Control and Enforcement of Lockdown held a video conference meeting on April 25 to review a draft document on the extension of lockdown in Phnom Penh and adjacent Kandal province’s Takmao town. The meeting was chaired by Minister of

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a