The Philippines still has some ways to go having ranked only the 22nd of 50 countries in the Agility Emerging Markets Logistics Index 2020’s overall ranking, down two places from a year ago.
The Top 10 emerging logistics markets (EM) include China, India, UAE, Indonesia, Malaysia, Saudi Arabia, Qatar, Mexico, Thailand and Turkey, according to the index prepared by logistics market research service Transport Intelligence and logistics firm Agility.
“The strongest clusters of emerging markets are in the Arabian Gulf and Southeast Asia, thanks to business-friendly conditions and core strengths,” the 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 ranked 19th, down four places from a year ago. Still leading the pack is 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 Malaysia — rose 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.