Competition Of Rice Exports Between Thailand And Vietnam

Thailand was the main rice exporters that will became top priority in the world, lead to more plantations for rice. Considering other competitors such as Vietnam, India, United States, Pakistan and China, the amount of rice exported by Vietnam and Thailand had the same level. The similar cultures and geography of two countries were the major factors that reducing market share in world market. Vietnam’s economy has higher growth compare to the other countries in ASEAN. As a result, Vietnam becomes Thailand main competitor in international market. Vietnam’s economics potential and high growing lead Vietnam to be a new choice for foreign investor. In the mean time Vietnam is traded, one of the most important. However Thailand is still the biggest rice export in the world.In this, the secondary data was employed to construct. Revealed Comparative Advantage (RCA) and market share. The secondary data of exporting rice covers from 2000 to 2014. This study also covers many topics such as competition among rice exporter the comparative advantage of Thai and Vietnamese rice exports to world markets, the ability to compete with Thai rice exports and Vietnam the country’s major competitors, and consider the advantages in comparison with the market share. By comparing RCA between two countries, it appears that Thailand still has a comparative advantage in the international rice market. However, the capacity to compete in the international rice market declined. The new competitor like Vietnam has increased as a comparative advantage in the market especially with Thailand, in the future, Thailand is competitiveness in the market will decline and this included the fragrant rice. If the country can not enhance the competitiveness. Thai’s rice could lose its leadership position in the world market.The comparison of RCA and market share between Thailand and Vietnam are carried out to understand the advantage of the rise export and its international market share. Comparing RCA and exports between Thailand and Vietnam in the world market in 2000-2014, RCA of export of Thai rice is less than 1, except in 2007. While RCA of Vietnam is more than 1, that means Vietnam return to export rice in an international markets after a policy to increase rice production for export is regulated. The RCA of Vietnam is greater than Thailand during the past year. This is because Vietnam has lower quality of rice compare to Thailand.