Vietnam's logistics development potential praised

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According to DHL’s second annual Global Connectedness Index (GCI), a detailed country-by-country analysis of the cross-border flows that connect the world’s economies, Vietnam was rated as one of its top five countries in terms of its development in the past six years. Meanwhile the World Bank's 2012 Logistics Performance Index (LPI) rated the country one of its top four countries for logistics “over-performance”  relative to its per capita GDP (i.e. the lower middle-income category).

The GCI seeks to uncover the true potential of global connectedness and measures against 12 different types of flows across four pillars - trade, capital, information and people. 140 countries were ranked according to the depth and breadth  of their integration into the world economy from 2005 to 2011.

“The study gives an in-depth assessment of our connectedness and helps us identify the opportunities for market growth. The findings consistently reveal that Vietnam’s role as the region’s next up and coming economy with massive growth potential. The country is well-poised to develop mutually beneficial economic opportunities with neighboring countries and the global market,” said Yasmin Aladad Khan, senior vice president, DHL Express South East Asia.

In the DHL study, Vietnam placed 31st from the 140 nations that it studied, and was heralded for the breadth of its trading partners and the diversification of its export industry.  The country has moved from an era of reliance on crude oil and agricultural products into an era of manufactured goods, notably apparel and footwear, and is fast developing its base of electronic products destined for the markets of the world.

“This certainly mirrors our experience,” said DHL-VNPT Express general director  Christopher Ong.  “DHL was the first international express company to enter the market in 1988, and while we have long seen a heavy focus on textiles, apparel, footwear and furniture, we are increasingly seeing more demand for our services in the electronics sector, where time-sensitive deliveries are essential. The GCI further highlights a reliance on imports, notably as raw materials and components for re-export. This once again is reflective of our experience on the ground.”

Meanwhile, LPI shared more good news for the nation. There are a number of countries that have achieved LPI scores which are much higher than their peers with the same per capita GDP levels. Vietnam is one such country which has outperformed its peers, ranking among the Top5 countries in the same per capita GDP bracket. This places Vietnam in a category with India, China and South Africa as nations that trend well ahead of the mean.

“This is a very important finding for Vietnam,” Ong continued.  “Essentially what this means is that Vietnam is well placed to continually ramp up its export industries in future, and this logistics capability is crucial for the nation's ongoing economic development.”