Phl among strongest emerging markets

MANILA, Philippines - The Philippines is being tagged as one of the biggest emerging markets by global logistics and transport companies, its improving business environment propelling it upward three places to 16th spot in the Agility Emerging Markets Logistics Index 2015.

The Philippines also earned the distinction of being among the top 10 upward movers, landing in fifth place, in the latest index. The index is an annual ranking of 45 emerging economies accompanied by a separate survey of nearly 1,000 global logistics and supply chain executives.

“The Philippine economy has slowed in recent months, but the turnaround orchestrated by President Aquino is reflected in both the index data and industry sentiment toward the country, which has emerged as a standout. The Philippines climbed three spots (to no. 16) in the data-driven Index and jumped five spots (to No. 15) in the survey,” the report said.

It added that in the previous 2014 index, the Philippines climbed nine spots to no. 19, “the largest improvement of any country since the index was first compiled in 2010.”

Fellow Association of Southeast Asian Nations (ASEAN) member Vietnam placed 10th among the biggest movers in the 2015 index, while Cambodia was one of the biggest downward movers.

In overall rankings for other Asean countries in the index, Indonesia moved up one place to fourth from the 2014 index, Malaysia remained in eighth place, Thailand stayed in 14th spot, and Vietnam skipped two places to move up to 19th. Cambodia, meanwhile, slid down three notches to 44.

The recently released index commissioned by global logistics firm Agility used three metrics to assess and rank the emerging market countries. Size and growth attractiveness made up 50 percent of overall Index score, while compatibility and connectedness each accounted for 25 percent of overall score.

In size and growth attractiveness -— which used data on economic output, projected growth, financial stability, and population size — the Philippines landed in 12th place, unchanged from the 2014 index. Indonesia was third, Thailand ninth, Malaysia 13th, Vietnam 18th (up two places), and Cambodia 45th.

Compatibility, meanwhile, rated emerging markets by their market accessibility and business regulation, foreign direct investment, market risk and security threats, as well as level of likely demand for logistics services based on the country’s economic development.

The Philippines made the biggest jump with eight points to settle into 20th place. For the five other Southeast Asian countries, Malaysia moved to no. 11 (up 4), Vietnam was no. 21 (down 1), Indonesia was steady at no. 24, Thailand edged up to no. 28 (up 4), and Cambodia fell to no. 31 (down 8).

In connectedness, the report assessed a country’s domestic and international transport infrastructure and looked at how well they connect. That included frequency and range of destinations of liner shipping connections, level of airport infrastructure, efficiency of customs and border controls, and overall transport infrastructure.

The Philippines moved up one slot to 35 from the 2014 index, while Malaysia was in second place. Thailand inched up one place to 18th, Indonesia stepped up two notches to 23rd, Vietnam was unchanged at 29, and Cambodia went down four places to 38th.

On the other hand, in the survey portion, the Philippines also improved its standing among supply chain executives surveyed. They pushed the Philippines up five spots to no. 15 among countries they said will emerge as a major logistics market.

Asian countries dominated the index. Four Asian nations ranked in the top 10, and seven of the top 20 are found in Asia. Accordingly, the top 20 emerging markets are in this order: China, Saudi Arabia, Brazil, Indonesia, India, UAE, Russia, Malaysia, Mexico, Turkey, Chile, Qatar, Oman, Thailand, South Africa, Philippines, Morocco, Kazakhstan, Vietnam, and Uruguay.

Several countries in Southeast Asia, including the Philippines, showed stellar performance. The report said that with Southeast Asia’s economies set to form the Asean economic community this year, “multinational companies have been building their presence in the region to take advantage of the opportunities presented by Asean economic integration.”