PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1199645
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1199645
The ASEAN Freight and Logistics Market are anticipated to register a CAGR of more than 6.9% over the forecast period. As ASEAN thrives on being the trading and economic hub region, logistics becomes more complex and vital in horizontal and vertical integration. Currently, investors are presented with a wide range of possibilities as ASEAN pursues improved connectivity through various modes and access to ports, sophisticated logistics services, and skilled professionals in all aspects of supply chains.
ASEAN, the seventh-largest automotive manufacturing hub worldwide, produced a total of 3.5 million vehicles in 2021, exceeding 2.85 million units in 2020. The automotive production in ASEAN is expected to return to the levels seen before COVID-19 sometime between 2023 and 2024. The vehicles manufactured in ASEAN are sold to local markets and exported to Australia, New Zealand, and the Middle East.
The export volume of automobiles in Thailand was about 960 thousand units. There are a lot of whole vehicle manufacturers in the Philippines, Malaysia, Vietnam, and Indonesia. In general, the sales volume of automobiles in Southeast Asia has presented an upward trend in recent years. Especially the constant economic development in the Philippines and Vietnam stimulates the sales growth of automobiles.
The*Association of Southeast Asian Nations (ASEAN) region's light vehicle production in July 2022 posted significant growth of 36% year on year (y/y) with 282,144 units compared with the low base in July 2021; year-to-date (YTD) production in July 2022 also surged 13.9% y/y, recording 2.2 million units, largely driven by the robust production during the first half across the region.
The manufacturing sector is crucial in the emerging economies of ASEAN, and the regional governments are continuously promoting manufacturing activities through various initiatives, such as Eastern Economic Corridor (EEC) in Thailand. With the rising manufacturing costs in China, the country is moving away from labour-intensive industries. Additionally, moving up the value chain is leading businesses to relocate their manufacturing facilities to Southeast Asia.
Indonesia imported goods worth USD 91 billion (roughly just over IDR 1.2 quadrillion) in the first half of 2021. This corresponds to a growth of 28.4% compared to the same period last year, i.e., 2020, and is the highest value in recent years. This is an astonishingly positive trend, as the economy only grew by 3.1% in the first six months of 2021, which is well below the pre-crisis level.
The newly released Global Trade Growth Atlas 2022 has put the Association of Southeast Asian Nations (ASEAN) in the spotlight because the region is forecast to lead the world in export growth over the next five years. The Global Trade Growth Atlas 2022 shows that, when it comes to trade, the volume has increased, speed has increased, and trade footprints are broader. Furthermore, it is expected to grow faster in the next two years than pre-pandemic.
The ASEAN Freight and Logistics Market are fragmented in nature, with a mix of major international and local companies. Major players in the region include Deutsche Post DHL Group, DB Schenker, Kerry Logistics Network Ltd, Nippon Express Co. Ltd, SCG Logistics, and many more. Some of the countries in the ASEAN region, like Indonesia and the Philippines, are moderately growing, with the presence of a large number of local players and some major players. However, Singapore, Vietnam, and Thailand are highly competitive markets, with the presence of a large number of international players.