PH ranks 22nd in emerging markets logistics index
MANILA – The Philippines still has some ways to go as it is currently no.22 in the Agility Emerging Markets Logistics Index 2020’s overall ranking, slightly above the halfway mark among the 50 most promising emerging logistics markets, down two points from a year ago.
The Top 10 emerging logistics markets are China, India, UAE, Indonesia, Malaysia, Saudi Arabia, Qatar, Mexico, Thailand, and Turkey, in that order, according to the index prepared by logistics market research service Transport Intelligence and logistics company Agility.
“The strongest clusters of emerging markets are in the Arabian Gulf and Southeast Asia, thanks to businessfriendly conditions and core strengths,” the recent report said.
Despite its trade and economic problems, China continues to lead the overall index, edging away from the other markets as improvements in core strengths across domestic and international logistics opportunities offset some declines in business fundamentals, the report said.
Notably, Vietnam is in 11th place, dropping from 10th as
Thailand enters the Top 10 for the first time.
The index ranks 50 countries by three factors that make them attractive to logistics providers, shipping lines, air cargo carriers, and distributors. These sub-indexes are domestic logistics opportunities, international logistics opportunities and business fundamentals.
In terms of domestic logistics opportunities, the Philippines is currently at no. 19, down four places from a year ago. Leading the pack is still China, followed again by India, then Indonesia, UAE, and Brazil.
The top emerging markets in terms of international logistics opportunities are China, India, Mexico, Vietnam and Indonesia. The Philippines is in 13th place, up one spot.
Vietnam and Indonesia 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.
Elsewhere in the top 10, two other Southeast Asian markets -Thailand and Malaysiarose in the international logistics ranking as a result of infrastructure investment programs.
In Thailand, the Eastern Economic Corridor is developing sea and airport connectivity, as well as highway infrastructure to improve export efficiency and build volumes.
In Malaysia, infrastructure projects are helping to fuel a rapid rise in exports of electronic devices, which have risen as US tariffs depressed Chinese export volumes.
Under the business fundamentals sub-index, the Philippines is way down in 30th place, but an improvement of four places from 2019. The best places to do business in are UAE in top spot, then Malaysia, Saudi Arabia, Qatar, and Bahrain.