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Agricultural Competitiveness of Vietnam by the RCA and the NRCA Indices, and Consistency of Competitiveness Indices

Viet Van Hoang, Khai Tien Tran, Binh Van Tu, Vinh Ngoc Nguyen, An Quynh Nguyen

DOI: 10.7160/aol.2017.090406

Agris on-line Papers in Economics and Informatics, No 4 /2017, December

pp. 53-67

Hoang, V. V., Tran, K. T., Tu, B. V., Nguyen, V. N. and Nguyen, A. Q. (2017) “Agricultural Competitiveness of Vietnam by the RCA and the NRCA Indices, and Consistency of Competitiveness Indices", AGRIS on-line Papers in Economics and Informatics, Vol. 9, No. 4, pp. 53-67. ISSN 1804-1930.DOI 10.7160/aol.2017.090406.

Abstract

This study measures the static and dynamic agricultural competitiveness of Vietnam by the RCA
and the NRCA. The dynamics of the trade competitiveness indicators are assessed in three ways: OLS
regression, Markov matrices, and trend analysis. The paper, moreover, tests the consistency between the RCA,
NRCA, and RTA indices. The results show that (i) Vietnam, generally, achieves strong competitiveness in crop
and fishery sectors whilst it has weak competitiveness in livestock and processed food sectors; (ii) the country
has the convergent pattern of agricultural competitiveness with the high stability of strong competitive
and uncompetitive sectors; (iii) the country’s agricultural export strategy and competitiveness pattern are based
on the natural-resource-intensive and traditional agricultural products with a slight improvement over time;
and (iv) the RCA, NRCA, and RTA indices are strongly consistent in identifying the degrees of competitiveness
and determining whether a country obtains competitiveness while they are weakly consistent in ranking
competitiveness.

Keywords

Vietnam, Agriculture, Competitiveness, RCA, NRCA, Dynamics, Consistency.

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