Competitiveness of Vietnam Coffee Industry and its Trend

Abstract

In this paper, three indexes were used to evaluate competitiveness of Vietnam coffee industry and its recent trend. We showed that Vietnam coffee has comparative advantages compared with other exports from Vietnam and with coffee product in the world as well. The increase in RCA index of Vietnam coffee implies the relative advantages in coffee production of Vietnam gradually rise. The DRC curve being below the exchange rate line reconfirms the increase in these advantages. This fact means Vietnam can save foreign currencies efficiently by investing in production of coffee for exports. However, the UV index shows that quality of Vietnam?s coffee is low in comparison with coffee products from other exporters such as Indonesia in ASEAN or Brazil, Columbia and Costa Rica in the South America. The decreasing quality of Vietnamese coffee shows that there is a trade off between comparative advantages and quality-based competitiveness in coffee production of Vietnam.http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=4c889ecb-dba5-4a73-88aa-281359f052b3