Comparative advantage of Num-mango industry in Vinh Long, Vietnam

Kiet Hong Vo Tuan Truong, Sang Minh Vo, Kim Ngoc Thien Ly, Anh Vu Thai Nguyen, Anh Ngoc Lan Pham, Lan Thanh Kim Nguyen

Article ID: 3076
Vol 8, Issue 5, 2024

VIEWS - 102 (Abstract) 39 (PDF)

Abstract


The main objective of this study was comparative advantages analysis at social price of Num-mango in the export channels. The examination of the domestic resource cost per shadow exchange rate (DRC/SER) ratio provides insights into the comparative advantage of the trading system in the Num-mango industry. A comprehensive study was conducted, with a total of 317 observations, with a specific emphasis on the significant individuals in Vinh Long, Vietnam. The comparative advantage of the Num-mango commerce system was inferred from a DRC/SER ratio below one, which may be attributed to the existence of two distinct export channels. The DRC/SER in export channel 1 exhibited values of 0.55, 0.67, and 0.53 over the three seasons. In season 1, export channel 2 had a score of 0.42, which then was 0.79 in season 2. The value of export channel 2 had a consistent upward trend during season 3, reaching its highest point of 0.3. It is recommended that regulators and governments provide export-focused incentives that prioritize the maximum comparative advantage. This study examines the concept of comparative advantage within export supply chains, specifically in relation to a diverse selection of tropical fruits and vegetables. Furthermore, it provides empirical evidence that supports the applicability and reliability of the Ricardian model.


Keywords


comparative advantage; Num-mango; economic efficiency; industry

Full Text:

PDF


References


Anh, S. T., Hung, L. M, Lam, T. L., Oang, T. T. K., Pho, L. D., Hanh, P. N., Phuc, N. V., Nam, N. H., & Peter, J. (2020). Activity 1.5: Value chain study – Mango processing: Improving smallholder farmer incomes through strategic market development in mango supply chains in southern Vietnam project. The Australian Centre for International Agricultural Research (ACIAR), Australia.

Balassa, B. (1965). Trade Liberalisation and “Revealed” Comparative Advantage1. The Manchester School, 33(2), 99–123. https://doi.org/10.1111/j.1467-9957.1965.tb00050.x

Bishnu, B. B. (1983). Domestic resource cost of tea production in Nelap. HMG. U.S. AID-A/D/C Project. Strengthening Institutional Capacity in the Food and Agricultural Sector in Nepal. Available online: https://pdf.usaid.gov/pdf_docs/PNAAN944.pdf (accessed on 20/02/2023).

Brian, B., An, D., Minh, P., Truc, D., Nhi, N., Tuan, T., & Trinh, D. (2021). Agriculture report. Hanoi: Business Centre British Chamber of Commerce Vietnam.

Bruno, M. (1972). Domestic Resource Costs and Effective Protection: Clarification and Synthesis. Journal of Political Economy, 80(1), 16–33. https://doi.org/10.1086/259858

FAO (2021). Major Tropical Fruits: Preliminary results 2020. Rome: Food and agriculture organization of the United Nations.

FAOSAT (2019). Available online: http://www.fao.org/faostat/en/#rankings/countries_by_commodity (accessed on 12 June 2021).

Fernandez-Stark, K., Bamber, P. & Gereffi, G. (2011). The fruit and vegetables global value chain: economic upgrading and workforce development. Durham, NC, USA: Center on Globalization, Governance and Competitiveness, Duke University.

Funing, Z., Zhigang, X. (2002). Regional comparative advantage in grain production in China’s main grain crops. Asia Pacific Press.

GAO, Z. Q., ZHAO, C. X., CHENG, J. J., & ZHANG, X. C. (2012). Tree structure and 3-D distribution of radiation in canopy of apple trees with different canopy structures in China. Chinese Journal of Eco-Agriculture, 20(1), 63–68. https://doi.org/10.3724/sp.j.1011.2012.00063

Gorton, M., Davidova, S., & Ratinger, T. (2000). The Competitiveness of Agriculture in Bulgaria and the Czech Republic Vis-à-Vis the European Union (CEEC and EU Agricultural Competitiveness). Comparative Economic Studies, 42(1), 59–86. https://doi.org/10.1057/ces.2000.2

GSO. (2020). Statistical YearBook 2019. The general statistic office of Vietnam (GSO). Hanoi city: Statistical Publishing House.

Han, M. Y., Li, Y. W., Fan, C. H., Zhao, C. P. (2008). Effects of Branch Bending Angle on Physiological Characteristics and Fruit Quality of Fuji Apple. Acta Horticulturae Sinica, 35(9), 1345-1350.

Hu, X. S., Hong, W., Wu, C. Z. (2008). Prediction model of cultivated land in Fujian Province based on BP neural network. Journal of Fujian Agriculture and Forestry University (Natural Science Edition), 37(4), 425-427.

Hui, X. J., Yin, C. W. (2011). Study on Agricultural Water in Shaanxi Province Based on Uncertainty Gray Prediction, Journal of Anhui Agricultural Sciences, 39(6), 3161-3162.

Jiang, T. (2011). The Research on the Status of Small-and-Medium-Sized Enterprises of County in the Dominant Industry of Shaanxi County Economy, Journal of Anhui Agricultural Sciences, 39(2), 1166-1171.

Khan, A., Farooq, A., Saddozai, K. N. (2006). Comparative advantage of sugarcane production in Pakistan. The Bangladesh Journal of Agricultural Economics, 29(1-2), 69-79.

Khoi, C. (2021). Giving Vietnamese mango to the world, export growth 16.5% of the first quarter 2021. Available online: https://vneconomy.vn/xoai-viet-ra-the-gioi-xuat-khau-tang-truong-165-trong-quy-1-20210409144035179.htm (accessed on 1 February 2023).

Li, J. R., Zou, Y. J., Ren, X. L. (2008). Humble opinion about modern apple industry in China, Journal of Fruit Science, 25(3), 378-381.

Li, X. S. (2011). Development and Suggestions of Apple Industry in Hebei Province. Journal of Hebei Agricultural Sciences, 15(3), 130-132.

Liu, F. Z., Wang, K., Cao, Y. F., Gao, Y., Gong, X. (2006). Advances and prospect in research on apple germplasm resources in China. Journal of Fruit Science, 23(6), 865-870.

Mao, F. X., Chen, Z. Q. (2011). An empirical analysis on international competitiveness of fruit industry in Shaanxi Province. Journal of Xi'an University of Posts and Telecommunications, 16(4), 96-100.

Minh, H. T., Trang, D. T. N., & Chen, J. (2016). Applying the DRC (Domestic Resource Cost) Index to Evaluate the Competitive Advantage of Dak Lak Coffee. OALib, 3(6), 1–8. https://doi.org/10.4236/oalib.1102727

Monke, E. A., & Pearson, S. R. (1989). The policy analysis matrix for agricultural development. New York: Cornell University Press.

OECD/FAO (2020). OECD-FAO Agricultural Outlook 2020-2029. Rome: Food and agriculture organization of the United Nations.

Olayinka, A., Omobowale, O., & Iyabo, A. (2014). Competitiveness of pineapple production in Osun state, Nigeria. Journal of Economics and Sustainable Development, 5(2), 205-214.

Peter, J. (2020). Activity 1.5: Value chain study–fresh: Improving smallholder farmer incomes through strategic market development in mango supply chains in southern Vietnam project. The Australian Centre for International Agricultural Research (ACIAR), Australia.

Pilar, S., Bruno, T., Dalia, M., Ana, P., Cristina, S., Makiko, T., & Florence, T. (2021). Promoting sustainable and inclusive value chain for fruits and vegetables—Policy review. Rome: Food and agriculture organization of the United Nations.

Porter, M. E. (1990). The Competitive Advantage of Nations. Palgrave Macmillan UK. https://doi.org/10.1007/978-1-349-11336-1

Ricardian, D. (1817). The works and correspondence of David Ricardo Vol. 1: On the principles of political economy and taxation. New York: Cambridge University Press.

Soetriono, Soejono, D., Dewi Maharani, A., & Bastara Zahrosa, D. (2020). The competitiveness of Pronojiwo snake fruit. E3S Web of Conferences, 142, 05007. https://doi.org/10.1051/e3sconf/202014205007

Thang, C. T. (2018). Impact of free trade agreements (AEC, CPTPP, EVFTA) on horticulture in Vietnam. (Unpublished the report). Institute of policy and strategy for agriculture and rural development, Vietnam.

Wei, N., Bian, K. J., Yuan, Z. F. (2010). Analysis and Forecast of Shaanxi GDP Based on the ARIMA Model, Journal of Anhui Agricultural Sciences, 38(9), 4933-4935.

William, S. (2014). Business engagement in smallholder agriculture: Developing the mango sector in Dong Thap province. (Unpublished the ODI Report). Overseas Development Institute, England.

Yang, M. R. (2011). An Investigation and Study on Information Needs and Service of Fruit Industry from the Perspective of Fruit Farmers, Journal of Anhui Agricultural Sciences, 39(12), 7455-7459.

Zawalinska, K. (2002). A Review of Quantitative Studies on the Competitiveness of Polish Agri-Food Products, 1990-2000. Available online: http://www.agp.uni-bonn.de/agpo/rsrch/idara/public.htm (accessed on 5 February 2023).




DOI: https://doi.org/10.24294/jipd.v8i5.3076

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Kiet Hong Vo Tuan Truong, Sang Minh Vo, Kim Ngoc Thien Ly, Anh Vu Thai Nguyen, Anh Ngoc Lan Pham, Lan Thanh Kim Nguyen

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.