Thai and Vietnamese Rice Competitiveness and Marketing Development Policy for Thai Rice

Abstract

          Over the past few years Thai rice export has been declining presenting the decrease in the competitive advantage of Thai rice. The study shows that the rice production cost in Thailand is higher than that of Vietnam which is the main competitor in the world rice market.  Moreover, Thai rice productivity has been lower than that of Vietnam. This leads to the dwindling of Thai rice market sharein the global market comparing with Vietnam, especially white rice.

          In addition, this study analyses the rice competitiveness of Thailand and Vietnam using the Revealed Comparative Advantage (RCA) index and the secondary data of the rice production, marketing, and development polices of these two countries. The results show that Thailand has potential to increase its rice export revenue by developing the opportunity in rice niche markets in which Thailand has the comparative advantage. The development in the high value and quality rice varieties, such as parboiled rice and traditional rice, and rice processing product have to be enhanced. Furthermore, the Thai government policy in the rice market intervention, so called “Rice Pledging Scheme”, has to be reconsidered because it causes Thai farmers cultivating in rice varieties which have less comparative advantage and resulting in the reduction of Thai rice market share.