VN ranks fifth in global trade connectedness

According to the report, Viet Nam was particularly strong in depth as it was the top outperformer, though it also outperformed on breadth.

The country’s best performance was on the trade pillar, ranking fifth overall, the report said, noting that Viet Nam has become a serious competitor to China not only in textiles manufacturing but also increasingly in high tech products.

It also put Viet Nam among the 10 countries with the largest outperformance, adding that half of these top 10 countries are located in Southeast Asia, a region where countries tend to have unusually high trade depth.

Southeast Asian countries benefit from linkages with wider Asian supply chain networks as well as ASEAN policy initiatives promoting regional economic integration, the report says.

Shoeib Reza Choudhury, CEO of DHL Express Viet Nam, said Viet Nam was one of the top destinations of companies seeking to diversify their manufacturing base, drawn by the young labor force, trade pacts and social stability.

The GCI measures each country’s global connectedness based both on the size of its international flows relative to the size of its domestic economy (depth) and the extent to which its international flows are distributed globally or more narrowly focused (breadth).

By Thuy Dung