Determinants of Vietnam's potential for agricultural export trade to Asia-Pacific economic cooperation (APEC) members

Abstract

This study examines determinants of Vietnamese agricultural exports to the APEC and whether there was an export gap between Vietnam and each APEC trading partner in the period 1998–2018, using the stochastic frontier gravity model. The empirical results affirm the consistency of the gravity model for Vietnamese agricultural exports. The new findings imply that the government should concentrate on designing a policy framework to encourage export enterprises to invest more in the technology factor, especially for large and high-demand markets such as the USA, Japan, and Korea. In practice, export enterprises should focus on several key action points. First, find partners to expand the distribution network of agricultural products within the four largest markets. Second, pay attention to updating information on the technical requirements of China, the largest import market. Third, conduct research to build up competitively strategic products that can be exported to potential new markets, such as Russia, Australia, and Malaysia.

Keywords

• Potential trade
• Agricultural exports
• Technical efficiency
• Determinants
• Vietnam