China, India, Indonesia, Malaysia among leaders in global logistics ranking
SINGAPORE - Media OutReach - 10 February2021 - Asia-Pacificnations lead all emerging market regions with China, India and Indonesia beingthe world's top emerging markets in the 12th annual Agility EmergingMarkets Logistics Index, a broad gauge of competitiveness based on logisticsstrength and business fundamentals.
The Indexranks 50 countries by factors that make them attractive to logistics providers,freight forwarders, shipping lines, air cargo carriers and distributors. AmongASEAN countries, Vietnam climbs three spots to No. 8 overall. Indonesia (3),Malaysia (5), Thailand (11) are strong; the Philippines rises one spot to No.21.
China andVietnam were virtually alone in the world in 2020, posting positive GDP growthfor the year after being hit early by economic fallout from the COVID-19pandemic.
Early 2020supply disruptions in China prompted some to question whether it wouldexperience an exodus of manufacturing by multi-nationals seeking to diversifysourcing and production. But the 1,200 logistics industry executives surveyedfor Agility's Index indicate little desire to uproot from China or othermarkets, preferring by a two-to-one margin to protect their supply chains byaccelerating adoption of digital tools and technology (41.3%) as opposed topursuing multi-shoring, near-shoring or reshoring strategies (21.9%).
Of thosewho would consider moving out of China, more respondents chose Vietnam as apreferred production hub than any other country (19.6%). Other Asian markets --India (17.4%), Indonesia (12.4%), Thailand (10.3%) and Malaysia -- are the nextleading choices. Only 7.8% of industry executives say relocating productionfrom China would mean reshoring to their home countries.
Asia-Pacificis the region that more respondents believe will recover from the globalpandemic by the end of 2021. Of those surveyed, 55.9% predict an Asia-Pacificeconomic recovery in 2021; 53.1% believe Europe will rebound.
"Asia Pacific experienced great turmoil in thebeginning of 2020 due to the COVID-19 crisis, but it has rebounded strongly,led by the powerful performance of China and Vietnam. The region is on trackfor a full recovery this year," says Andy Vargoczky, SVP of Sales &Marketing Asia-Pacific, Agility GIL. "India, Indonesia, Malaysia, Thailand andVietnam continue to improve their supply chain infrastructure and capabilities,showing why they are leaders in domestic and international logistics."
Across 50 countries, China, India and Indonesiarank highest in the Index for domestic logistics. China, India and Mexico areon top for international logistics with Vietnam 4th, Indonesia 5th,and Malaysia 7th. UAE, Malaysia and Saudi Arabia have the bestbusiness fundamentals.
Transport Intelligence (Ti), a leading analysisand research firm for the logistics industry, compiled the Index.
John Manners-Bell, ChiefExecutive of Ti, says: "The strength of the Agility Emerging Markets LogisticsIndex has always been to differentiate between those emerging markets whichdemonstrate resilience in the face of adversity and those which are morefragile. This year is no exception. Although some -- especially China andVietnam -- have been able to rebalance around domestic industrial and consumerdemand, the majority are still highly dependent on international markets andinvestment. As the COVID crisis finally unwinds over the next two years, thosemost resilient will bounce back the fastest. Inevitably, those which havefailed to embrace market, trade, governmental and social reforms will behardest hit by the fallout from the pandemic."
2021 Agility Emerging Markets Logistics Index: www.agility.com/2021index
Agility is a global logisticscompany with $5.2 billion in annual revenue and 23,000+ employees in more than100 countries. It is one of the world's top freight forwarding and contract logisticsproviders, and a leader and investor in technology to enhance supply chainefficiency. Agility is a pioneer in emerging markets and one of the largestprivate owners and developers of warehousing and light industrial parks in theMiddle East, Africa and Asia. Agility's subsidiary companies offer fuellogistics, airport services, commercial real estate and facilities management,customs digitization, and remote infrastructure services.
About Transport Intelligence (Ti)
Ti is one of the world's leading providers of expertresearch and analysis dedicated to the global logistics industry. Utilizing theexpertise of professionals with many years of experience in the express, roadfreight and logistics industries, Transport Intelligence has developed a rangeof market-leading web-based products, reports, profiles and services used bymany of the world's leading logistics suppliers, consultancies, banks and usersof logistics services.