Study On The Competitiveness Of Hainan’s Vegetable Industry In The Context Of China-ASEAN Free Trade Area

The competitiveness of Hainan’s vegetable industry in the context of China-ASEAN Free Trade Area (C AFTA) is studied in this article. As an important production base of winter melons and vegetables in China, Hainan’s environment-friendly fruits and vegetables have long been renowned the entire domestic. Substantial concerns on construction and improvement of Hainan’s vegetable production base have been given by National and provincial governments. However, as it is near to ASEAN countries in geographic, has similar climate and there is strong competitive between Hainan and ASEAN countries, the establishment of CAFTA (on January1,2010) may become the great challenge for the development of Hainan’s vegetable industry. Therefore, in the context of CAFTA, Hainan’s vegetable industry must improve its competitiveness as soon as possible to better respond to the challenges from ASEAN countries.Based on the industrial competitiveness theory, the methods of combination of the qualitative analysis and quantitative analysis and combination of the normative analysis and theory applying are used in this article to calculate and assess the competitiveness of Hainan’s vegetable industry and its changes, and further analysis the factors affecting the its competitiveness, so as to seek the suggestions for its optimal resource allocation and enhancing the competitiveness of Hainan’s vegetable industry. This article firstly describes the relevant theory of competitive advantage, and the competitiveness evaluation indicators of vegetable industry; secondly analysis the present production and trade situation of Hainan’s vegetable industry, as well as the influence on the development of Hainan’s vegetable industry from CAFTA; then builds the appropriate evaluation indicators to calculate and assess the competitiveness of Hainan’s vegetable industry, and makes comparison with ASEAN countries. The results showed that Hainan’s vegetable industry has a certain competitive advantage to ASEAN countries’, but it is unobvious and has a continued downward trend, and Thailand, Viet Nam, Myanmar and Laos are the countries which are the most threat to Hainan’s vegetable industry among ASEAN countries. To further analysis the causes of Hainan’s unobvious competitiveness to ASEAN countries in vegetable industry, the Expanded Diamond Mode is integrate used in this article to analysis the factors affecting its competitiveness. It is found that unsmooth production-research system, less developed or even lagged processing enterprise and logistics information system, low level of vegetable industrialization, the weak brand consciousness, weak ability to respond foreign technical barriers to trade, and so on, are the important factors that restricting the improvement of the competitiveness of Hainan’s vegetable industry. Accordingly, several suggestions for our government and vegetable-concerned parties are finally proposed in this article to improve the competitiveness of Hainan’s vegetable industry as below:strengthening the cultivation of fine vegetable varieties and rationalizing the production layout; increasing the sales strength and regulating the circulation order of farming endowment market; strengthening the construction of infrastructure to promote the development of relevant industries; strengthening the construction of quality and safety standards system; supporting export-oriented enterprises of vegetable industry and construction of export-oriented vegetables production and processing base; strengthening the construction of industry organizations to improve the organization level of vegetable exports.