Business Groups, Institutions, and the China–Vietnam Rice Trade

Abstract

Recent high-level visits between China and Vietnam have prioritized Vietnamese rice exports, with varying results. When the issue was first raised in 2015, rice exports surged dramatically. From 2016 through 2017, they performed poorly despite efforts to encourage them. This paper argues that the buying behavior and lobbying preferences of business groups, made possible by a unique institutional setup, explain the different results.