Vietnam expected to emerge as a prominent logistics player in Asia
Vietnam’s logistics industry is gaining recognition in the global market, with growing expectations that it will emerge as a “rising star” in Asia.
This is due in large part to the country’s efforts to develop its supply chain industry and benefits from ‘China plus’ sourcing strategies of major multinational manufacturers.
The industry has witnessed an annual growth of 14-16 per cent which has solidified its position as one of the fastest-growing and most stable sectors in the country with a total value of US$40 billion to $42 billion a year.
According to Agility Emerging Markets Logistics Index 2023, Vietnam moved into the top 10 of the Index among 50 global markets, advancing one position compared to the previous year.
Agility’s ranking is based on four criteria including domestic opportunities, international opportunities, business fundamentals and digital readiness.
This recognition can be attributed to several factors, including the country’s strategic location, favourable investment policies and the Government’s ongoing efforts to improve infrastructure and streamline regulations.
Among these criteria, Vietnam is leading Southeast Asia and ranks 4th globally in terms of global opportunities with a score of 6.03 out of 10. The country has benefited greatly from the “China plus” policy as major global manufacturers are seeking to diversify their supply chains to reduce reliance on the Chinese market.
According to Trần Thanh Hải, Deputy Director of the Import-Export Department under the Ministry of Industry and Trade, the country’s import-export value reached a record high of $732 billion in 2022, up 9.5 per cent on-year, was partly attributable to the improved quality and quantity of logistics services offered by businesses.
Moreover, the Vietnam Maritime Administration has recently embraced the trend of green technology in the shipping industry to reduce fuel consumption, lower carbon emissions, and mitigate the effects of climate change.
