VIETNAM’S EXPORTS OF RICE AND FISHERY PRODUCTS

Abstract

1.M. Porter and M. Fairbank’s basic views on competitive advantage

The writer bases himself on these two scholars’ theory on international competition to make an analysis of the production and exports of the two major sectors-rice and fishery industry (Tra fish).

2.Rice exports

From 1989 to 2010 Vietnam exported 76.5 million tons of rice, generating revenues of $21.5 billion. Rice became one of the Top Ten export items having revenues of over $1 billion in 1998 and over $2 billion since 2008. This success stems from the following factors; (1) Credit, husking system and reserves; (2) Seasonal structure; and (3) Technology and shaping of focal rice region (Mekong Delta has become Vietnam’s focal rice region).

3.Exports of fishery products

Exports of fishery products generated revenues of around $300 million in 1990 and nearly $1 billion/year during 1991-1999 period. The revenues of fishery exports in 2003 were estimated at $2.2 billion, and exceeded $3.5 billion in 2007.

The factors that brought about these successes include (1) Tra fish phenomenon- Between 2000 and 2009 exports of fishey products- Tra fish (and Basa fish) increased as many as 830 times in terms of output and 460 times in terms of revenues. Fish raising in Mekong Delta in 2008 increased by 12 times overs 1995; and (2) Fishery focal regions and the competitive strategy of fishery exporters have been shaped.

4.Improving competitive edge

The strategy to improve the competitive advantage should be understood as having prospects of rice markets, facing new rivals-Cambodia and Myanma and improving the credits and reserves system and raising the rice values.

In improving the competitive edge of the nation in these two sectors and based on M. Porter’s theory, we should create the composition that would raise rice value; and build focal sectors consider making sub- products related to exports of rice and fishery that will also earn Vietnam some billion dollars./.