According to a new research by Standard Chartered Bank, Singapore continues to show substantial potential for trade growth.

The city-state made the list of 20 global markets that are most rapidly improving their individual potential for trade to grow placed at 16th place, according to the bank’s new Trade20 Index.

The Trade20 study examined 12 metrics across 66 economies, analyzing changes across three equally weighted pillars of economic dynamism, trade readiness and export diversity.

The economic dynamism pillar was measured by inward foreign direct investments (FDI), export volume growth and gross domestic product (GDP) growth. Trade readiness refers to the market’s foundations to support future trade growth, measured by factors such as the quality of trade and transport infrastructure and ease of doing business, while export diversity was measured by factors such as export count.

First in the list was Côte d’Ivoire, followed by India, Kenya and China. Meanwhile, Hong Kong took 11th place, above Sri Lanka at 14th and Singapore at 16th.

For Singapore, its ranking in the index was largely thanks to its economic dynamism, amid increasing levels of inward FDI, StanChart said. The Republic had placed fourth in the 2019 world ranking of FDI destinations by the United Nations Conference on Trade and Development.

StanChart noted that the Singapore government has been expanding the scope of its free trade agreements to keep pace with global developments on issues including e-commerce, intellectual property rights, competition, government procurement and dispute resolution. Ongoing digitalization efforts are also driving its information and communications sector, while infrastructure improvements underpin investment activity.

Elsewhere in South-east Asia, Vietnam, Indonesia, Thailand and the Philippines likewise have substantial trade growth potential, buoyed by regional deals and liberalizing economies. They placed sixth, seventh, eighth and 20th respectively on the list.

Vietnam, Indonesia and Thailand performed particularly well in terms of trade readiness. The former two scored high marks for that pillar due to improvements to their infrastructure and the ease of doing business, while Thailand’s ranking was boosted by its substantial growth in e-commerce. Meanwhile, the Philippines shone in terms of economic dynamism, driven by its strong export and GDP growth.

These South-east Asian markets, including Singapore, are being propelled by export-oriented manufacturing, growing intra-region trade, strong domestic demand, close trading ties with China, and healthy job markets.