Comparative advantage in Vietnam's agricultural exports to Australia

Abstract

This study determines the comparative advantage of Vietnam's agricultural products based on the index of comparative advantage (RCA - Revealed Comparative Advantage). The research results on the UNComtrade database show that Vietnam maintained 8 commodity groups with revealed comparative advantage in the period 2000 - 2020. Contributing to the increase of Vietnam's exports to Australia one partly due to strong market demand, appropriate industry structure, and a significant part from the factor of competitive advantage, especially in the period 2007 - 2015. Vietnam's exports to the Australian market are those with comparative advantages. Therefore, with the trend of trade liberalization increasingly strong in the region, Vietnam has the opportunity to take advantage of market factors and this process will promote the creation of very good trade between Vietnam and some economies in the region. Keywords: comparative advantage, agriculture products, RCA