A Comparison on Rice export between China and Vietnam: A constant market share analysis

Abstract

Rice exports are assumed to be one of the engines of economic growth of both Vietnam and China in recent years. The present study aimed to compare the rice export performance of Vietnam and China and assesses to what extent it reflects their international competitiveness in the selected target markets over 2000-2014 period. The Constant Market Share model was applied to identify the main decompositions affecting the changes of its export growth. The results of decomposition analysis underlined that the structural effect and growth effect have been more significant in affecting the export growth of these two parties; and their export orientation to target markets was remaining stable during the studied periods. In which, China rice exports have been suffered a highly intense competitiveness from Vietnam exports in Philippine, Singapore, Africa and Middle East market. Further, the competitiveness index indicated that China export growth (to the target markets) was stronger than that of Vietnam in the first sub-period (2000-2008), but the case had changed in the second sub-period (2008-2014). Specifically, China rice export volume to Vietnam was stronger than that of Vietnam to China.