Determinant Competitiveness of Lychee Industry in Vietnam

Vietnam has strongly potental to produce variety of fruits such as lychee. However, it lack of a study considering about its competitiveness. Good Agricultural Practices (VietGAP) has been introduced in Bac Giang province since 2008 as pilot area in Vietnam. It is important to know how the VietGAP could promote lychee industry.The estimated Resource Cost Ratios (RCR) from the Policy Analysis Matrix (PAM) showed that Bac Giang province had comparative and competitive advantages. Lychee production with high adoption of VietGAP also had higher comparative and competitive advantages than that with low adoption of VietGAP. Results of the sensitivity analysis indicated that the world price of lychee, lychee yield, and official exchange rate have positive effect on the lychee industry competitiveness while the labor costs, input prices, and interest on capital have negative effect.