Vietnam’s Rice International Competitiveness,Competitiveness Enhancement,Alternative Market For Vietnam’s Rice Export

Vietnam is one of the top agricultural nations.Agriculture generates 24% of GDP,20% of exports,and 70% of jobs.Rice cultivation—30% of total agricultural output—is vital to the country’s economy.Vietnam has a rice production advantage.Vietnam once outperformed India,Thailand,and Pakistan in rice exports.Recently,this advantage has diminished and is now less advantageous than in other countries.The rice industry,which is struggling due to integration and the COVID-19 pandemic,should take note.This study aims to determine the competitiveness of Vietnam’s rice exports and propose enhancements.The study also examines major rice importers’ demand and explores alternative markets for Vietnam’s rice to increase export capacity.The study evaluates Vietnam’s rice production efficiency,land availability,production costs,export price,and product quality using absolute and comparative advantage economic theories.The study analyzes Vietnam’s rice export competitiveness using the Revealed Comparative Advantage Index(RCA index)and Export Competitive Advantage Index(XCA index).The study measures product diversification among major rice exporters using the Index of Diversification(HI index).The Import Comparative Need Index(ICN index)also measures rice import demand in importing countries.The study compares rice production among the top five global rice exporters—India,Pakistan,Thailand,the US,and Vietnam—using UNComtrade data from 2010 to 2021.The US produced the most rice from 2010 to 2021,followed by Vietnam.India has always had the largest rice planting area,while Vietnam’s has decreased significantly from 2010 to 2021.Vietnam’s rice production cost is the lowest of the five countries,according to the analysis.The results show rice’s 2003-2021 RCA score in five countries.Vietnam’s comparative advantage in rice production and export is declining while India’s has been consistent.India,Pakistan,and Thailand consistently lead in rice production and exports.Vietnam’s rice competitive advantage is declining,and the US’s is very low.Due to its ability to export large quantities of rice at low prices,XCA analysis suggests that India is the most competitive rice exporter among the top 15 countries.Due to their ability to balance volume,value,and price per kilogram,Thailand,Vietnam,and Pakistan are also highly competitive rice exporters.In contrast,the USA,China,and Myanmar have been identified as less competitive in the global rice export market,indicating that they may need to improve their production capacity or pricing strategies to remain competitive.Vietnam ranks third in the XCA index for rice exports.To remain competitive over the long term,the study emphasizes high export volume,a low price per kilogram,and high-quality rice.The global rice export market is dominated by India,Thailand,Pakistan,and Vietnam,with India’s share rising and Thailand and Pakistan remaining stable.Vietnam’s growth has outpaced the US’s.Comparatively,Vietnam’s market diversification is low.This paper also examines major importing countries’ rice import demand,competition,growth opportunities,and market trends.Vietnam exports a lot of rice to major rice-importing nations,according to the findings.The Philippines imports 86.13% and Singapore 30.21% of their rice from Vietnam.It’s also interesting that Chinese Hong Kong,and Chinese mainland import a lot of rice,with Vietnam supplying 27.09% and 25.78% of both markets.Vietnam also exports rice to Saudi Arabia,the US,Benin,Ethiopia,Japan,South Africa,France,the UAE,Germany,Canada,Kenya,Madagascar,and the UK,but its share ranges from 0.01% to 7.80%.To increase its global market share,Vietnam’s rice industry needs government and non-government organization(NGOs)support,according to the study.This study recommends investing in research and development,improving irrigation systems,using higher-quality seeds,and improving farming techniques.Vietnam needs to improve its marketing and branding,create a distinct rice brand,and launch effective marketing campaigns to reach potential customers.The study suggests that NGOs could help the industry by providing technical assistance,advocating for policy change,and promoting fair trade.These strategies could boost Vietnam’s rice industry and small farmers’ incomes.