In the Agility Emerging Markets Logistics Index 2021, Vietnam moved three places up the rankings to 8th place overall. The country’s consistent economic growth over the past few decades, as well as its recent success in controlling the spread of the coronavirus, has positioned it as a promising emerging market according to the 2021 Index.
In recent years, Vietnam has emerged as a very popular manufacturing location, especially for global companies determined to reduce the risk of producing exclusively in China. The country has recently positioned itself as a viable, cost-effective and proximate alternative to China for manufacturers looking to escape the growing costs of sourcing in China or fearing over-reliance on production there. Increasing levels of ‘optionalization’, as the trend has been termed, will continue to benefit Asian countries that are able to build out the necessary industrial ecosystems.
The survey found that, once again, Vietnam tops the ranking as the emerging market best placed to benefit from any shift away from China. Vietnam, along with India, which remains in second place, is rated as the best alternative option by meaningfully fewer respondents this year. Throughout the survey, respondents stress that China remains a vital supply chain location and that cost is an extremely important and complex calculation when determining geographic locations. While the vulnerabilities of overexposure to China have become more apparent during the COVID-19 pandemic, so too has the time, cost and complexity required to relocate.
Read more in an article from Transport Intelligence.< Return