Vietnam continues to stay in the 3rd place due to recent development in infrastructure and domestic market, as well as export growth benefiting from commercial war.
According to the latest logistics market index report Agility 2020, if companies decide to leave China because of the commercial war, Vietnam and India will be the most potential destinations. Mexico and Cambodia are moving selections rated the lowest by survey participants.
In this year's rankings, Vietnam stands at 11th place, down 1 level compared to last year. Vietnam ranks 4th in the South East Asia region, while Indonesia, Malaysia, and Thailand taking the top 3 positions. Despite leading South East Asia in the fundamental trading index, Malaysia still follows Vietnam, Indonesia, and Thailand regarding international logistics opportunities.
Malaysia witnessed an increase of 24% in the amount of aquatic goods export to America in the first 8 months of 2019 as a result of the commercial war, however, the aquatic goods export market of this nation is still smaller compared to those of nations with sea where the goods export markets are about 3 times larger.
The report also shows that out of the 6 most potential markets, India and China are still in the lead. Vietnam continues to rank 3rd due to recent development in infrastructure and domestic market, as well as export growth benefiting from commercial war.
Several survey participants confirmed: “Vietnam is currently the “commercial war winner” as both air and aquatic export to America are estimated to have increased by 23% and 25% in 2019, respectively.”
In terms of quantity, the container goods exported the most to America by China via aquatic export in 2018 are furniture, bedding, and lighting, accounting for 14% of the total goods aquatically exported to America.
As these Chinese exporting sectors to America suffer, Vietnam has gained lots of benefits. It is estimated that Vietnam could export more than 2.1 billion tons of furniture to America. Currently, this is the fastest growth speed, as indicated by the press.
>> Vietnam’s logistics industry: 5-year potential
