Vietnam Rice Competitiveness in the International Trade Market in Recent Years, Opportunities and New Challenges for Vietnam Rice Export

Abstract

Vietnam is a top agricultural nation. Agriculture makes up 24% of GDP, 20% of exports, and 70% of employment. The agricultural industry is vital to the country’s economy, especially rice farming, which accounts for 30% of the total output. Currently, rice is the main food consumed by most Vietnamese citizens. Millions of tiny farmers make their living producing rice. In the area of rice, Vietnam is regarded as a nation with a very strong comparative advantage. Vietnam used to have a comparative advantage over other major rice exporters like India, Thailand, and Pakistan. However, in recent years, this advantage has decreased and is now less favorable than in other nations. This is also regarded as a warning for the country’s rice industry, which faces numerous difficulties and obstacles due to the process of integrating the world and the rise of the COVID-19 pandemic. In addition to figuring out opportunities and new challenges in Vietnam’s rice export, by using the Revealed Comparative Advantage Index (RCA), this study will analyze the international competitiveness of Vietnam’s rice exports and assist the country in locating alternative rice export markets. The research will also make some recommendations on how to boost exports of the country’s rice while maintaining or even enhancing its international competitiveness. Additionally, this article will use the Export Competitive Advantage index (XCA) as a complement to the RCA index’s bias.