Comparative and competitive advantage of the shrimp industry in Mekong river delta, Vietnam

Abstract

This study aims to measure the comparative advantages of alternative crops of rice, coconut, and pomelo as the key indicators for crop cultivation choices by using DRC, SCB, and other competitiveness indicators in PAM model with sensitivity analysis. The results indicate that pomelo fruit obtains the strongest competitiveness, coconut has the medium competitiveness, and rice has the weakest competitiveness. Coconut crop is the most stable while rice is the most sensitive to climate and market changes. This may suggest that farmers and policymakers should convert from rice crop into and adopt pomelo and coconut crops for more effective economic and sustainable benefits. However, this conversion should take account of the soil transferring costs and the initial cultivation costs of pomelo and coconut crops. Production indicators and trade indices seem to indicate contradictory rankings of competitiveness. The result, however, is still consistent with the economic theory.