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Viet Nam among top outperformers in global connectedness index: DHL Back

Viet Nam among top outperformers in global connectedness index: DHL

Viet Nam ranked 38 out of 169 in a 2020 global connectedness index released recently by DHL, a leading international logistics company, moving up from last year's result to rank just one spot below the US (37 of 169).

 

According to DHL, the Southeast Asian economy ranked 3rd among the best outperformers, who exceeded all expectations in the index, just below Singapore (1st) and Cambodia (2nd) thanks to its friendly policies include membership of numerous trade blocs and FTAs with almost all of the major global economies.

The country's stable political structure, since the Doi Moi reform, have brought massive international investment and businesses into the country, which has since helped boost Viet Nam's export growth, eradicate poverty and raise the middle class. The index ranks Viet Nam as the top country for community support of global trade and business ties.

In addition, major gains in this year's index for Viet Nam came from its trade pillar and information pillar. The top 10 countries ranked by their shares of Viet Nam's international flows consisted of China (19 per cent), the US (17 per cent), South Korea (13 per cent) and Japan (8 per cent) among others.

Major trade pacts signed by Viet Nam include the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union–Vietnam Free Trade Agreement (EVFTA), to name a few.

"This puts Viet Nam in a position to be a strong trade and manufacturing hub for the world. We [DHL] are optimistic about Viet Nam's economy and plan to continuously invest in our network and our services in the country," said Bernardo Bautista, director-general and country manager of DHL Express Vietnam.

DHL has set up a dedicated flight from HCM City, the country's largest economic hub, to Hong Kong earlier this year and added additional freighters to meet the increased demand by Vietnamese companies, he said.

The country is on a projected track to sustain economic growth in the future with an emphasis on strengthening its global links based on five policy areas to maintain peace and security, openness to international flows, to create an attractive domestic business environment and to boost regional integration and societal support for connectedness.

Despite the recent COVID-19 outbreak, the country is showing signs of regaining its economic and manufacturing momentum. Viet Nam's resilience to the impacts of the pandemic in 2020 meant it was able to bounce back quickly. Its economy expanded 2.9 per cent last year and export value rose 28.4 per cent in the first half of 2021 from a year earlier, making it a rare economic success story during the pandemic.

Despite the pandemic, the world remained connected in trade, according to the company. Trade in goods has already bounced back to overtake pre-pandemic levels and has been projected to grow fast in the near future.

"The robust global trade flows and economic recovery continue to create growth opportunities in the Asia Pacific, with Asia’s merchandise exports and imports volumes expected to grow to 14.7 per cent and 9.4 per cent respectively above its 2019 level in 2021. As the Regional Comprehensive Economic Partnership comes into effect in January 2022, it will contribute to greater global connectedness, economic recovery, and prosperity for the region,” said Ken Lee, CEO, DHL Express Asia Pacific.

The index, which tracks the depth and breadth of international trade, capital, information, and people flows, draws upon more than 3.5 million data points to examine globalisation worldwide, by region, and across 169 countries, who make up 99 per cent of the world's economy. 

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Source: Vietstock Finance

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