World market integration of Vietnamese rice markets during the 2008 food price crisis

Abstract

World market prices of rice have been subject to large fluctuations in recent years. In mid 2008, prices reached levels never seen before. Vietnam is a major exporter of rice and rice is also the main staple food of the country. Given the importance of rice for domestic food security, the Vietnamese government is intervening in its international trade by limiting exports in order to insulate domestic consumers from price hikes in the world market. The effects of these policy interventions on price transmission from international to domestic markets were investigated in this study. We analyzed the marketing chain of rice in Vietnam, constructed a multivariate vector error correction model for markets across the country and included a policy parameter as well as an international reference price. We found reasonable cointegration of most markets analyzed and only a limited effect of the applied export policies: they suppressed the price in the main producing region, the Mekong Delta, but did not significantly affect the prices in the main deficit regions of North Vietnam. From a food security perspective, it is likely to be more efficient to implement food security programs and public safety nets that are directly targeted at the poor, rather than attempting to insulate the whole country from the world market.

Considerations on the Role of Romanian Rice Production and Its Influence on the Commercial Relationship of the Product

“…This phenomenon is not a particular one for Romania or Europe. In this respect, it is worth mentioning that even in other regions (Vietnam) officially in 2001 the export quotas previously implemented have since all been eliminated, and all companies holding a general trade license for the marketing of agricultural products have been authorized to export (Luckmann et al, 2015). Integration of a country or region into the world rice market is variable, and with particular effects.…”

Do Vietnamese upland farmers benefit from high world market prices for maize?

“…The combined effect of the change in maize price and changes in input prices were the main causes for the drop in real farm income from maize production of 32% in 2008 (Ufer, ), after it had increased by 53% in 2007. Moreover, maize farmers in the north, who in most cases are not self‐sufficient in staple crops such as rice (Ufer, ), had to cope with higher food expenditures in spite of governmental policies that were implemented to lower domestic rice prices (Luckmann et al., ). In Yen Chau, real consumer prices for rice increased by 3% 3 in 2007 and by 8% 3 in 2008.…”

“…Luckmann et al. () used weekly data of five domestic markets (two in the south and three in the north of Vietnam) and analyzed the developments in these markets together with an international reference price over the period from 2007 to 2009 using a multivariate vector error correction model (VECM). They found reasonable cointegration of most markets.…”

The Regional Heterogeneity of the Impact of Agricultural Market Integration on Regional Economic Development: An Analysis of Pre-COVID-19 Data in China

“…The segmentation of agricultural markets is the result of the combined influence of factors such as local government policies, information technology levels, and geographical location [14][15][16]. It manifests in three specific categories: the first category involves the motivation of local governments to protect their local agricultural markets and ensure the market share of local enterprises [17]. This protective policy leads to market segmentation [18].…”