Competitiveness of Vietnam tuna export industry in the European market

Abstract

Export competitiveness is a relatively late research topic, but there has been a rapid increase in the number of studies in the last three decades. To date, this topic is not only a concern of researchers but also businesses, manufacturing industries, and countries, especially policymakers. In this study, we evaluate Vietnam's tuna export competitiveness in the European market through industry competitiveness indicators, including manifest comparative advantage (RCA), export market share (MS), and export price. In addition, the gravity model is used to determine the factors determining the competitiveness of Vietnam's tuna export industry in this market. The research results show that the competitiveness of Vietnamese tuna in the European market is quite high and tends to increase but is still much weaker than leading competitors such as Thailand, Ecuador, and Spain. The deciding factor for competitiveness is the large amount of domestically exploited tuna. Although the product quality is still low compared to major competitors in the market, it has improved rapidly in recent years. In addition, the suitability of tuna products exported from Vietnam to the import market and exchange rate fluctuations favorable to exports are other competitive advantages, among them, the exchange rate is the biggest decisive role. On the contrary, import taxes are the biggest barrier that reduces competitiveness in this market. To improve competitiveness and move towards sustainable development of the tuna export industry, Vietnam needs to make great efforts, especially strictly controlling domestic tuna resources, avoiding overexploitation, and focusing on improving high product quality. Furthermore, Vietnam needs to focus on meeting the commitment conditions in signed free trade agreements, actively research the market, focus on trade promotion policies, and strengthen trade connections with other import countries.