Asia-Pacific nations lead all emerging market regions with China, India and Indonesia being the world’s top emerging markets in the 12th annual Agility Emerging Markets Logistics Index, a broad gauge of competitiveness based on logistics strength and business fundamentals.
The Index ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors.
Among Asean countries, Vietnam climbs three spots to No. 8 overall. Indonesia (3), Malaysia (5) and Thailand (11) are strong; the Philippines rises one spot to No. 21.
China and Vietnam were virtually alone in the world in 2020, posting positive gross domestic product (GDP) growth for the year after being hit early by economic fallout from the coronavirus disease 2019 (Covid-19) pandemic.
Early 2020 supply disruptions in China prompted some to question whether it would experience an exodus of manufacturing by multinationals seeking to diversify sourcing and production.
But the 1,200 logistics industry executives surveyed for Agility’s Index indicate little desire to uproot from China or other markets, preferring by a two-to-one margin to protect their supply chains by accelerating adoption of digital tools and technology (41.3 percent) as opposed to pursuing multi-shoring, near-shoring or reshoring strategies (21.9 percent).
Of those who would consider moving out of China, more respondents chose Vietnam as a preferred production hub than any other country (19.6 percent). Other Asian markets — India (17.4 percent), Indonesia (12.4 percent), Thailand (10.3 percent) and Malaysia — are the next leading choices. Only 7.8 percent of industry executives say relocating production from China would mean reshoring to their home countries.
Asia-Pacific is the region that more respondents believe will recover from the global pandemic by the end of 2021. Of those surveyed, 55.9 percent predict an Asia-Pacific economic recovery in 2021; 53.1 percent believe Europe will rebound. SOVEREIGNPH