Comparative Advantage OF Tuong-Mango Export Marketing Channels in Dong Nai, Vietnam

Abstract

The primary objective of this research is to analyze the key stakeholders involved in the Tuong-mango export channels, specifically by investigating their production cost structures in relation to the prevailing market price. This research aims to examine the comparative advantage of the export supply chain in relation to its social price. The competitive advantage of the Tuong-mango trading system is determined by the systematic approach to supply chain management, namely via the evaluation of the domestic resource cost per shadow exchange rate (DRC/SER) ratio. A total of 213 observations were conducted in Dong Nai, Vietnam, with a specific emphasis on the main actors. Based on the findings, it is evident that the export supply chain of Dong Nai Tuong-mango has three discernible components. The DRC/SER ratio of the Tuong-mango trade system was determined to be less than one, indicating a competitive advantage resulting from the presence of three distinct export channels. The first three seasons of export channel 1 had DRC/SER ratios of 0.59, 0.62, and 0.59, in sequential order. The value of Season 1 on export channel 2 was recorded as 0.50, whilst Season 2 had a slightly higher value of 0.55. In Season 3, there was a notable increase in value, with a peak of 0.57 seen on the same export route. The first three seasons shown on export channel 3 had DRC/SER ratios of 0.51, 0.57, and 0.74, in sequential order. In order to facilitate the sustainable growth and economic prosperity of the Tuong-mango industry, it is recommended that policymakers and governments implement export-oriented incentives that prioritize the maximization of comparative advantage. This research offers valuable insights into the concept of comparative advantage within export supply chains, with a specific emphasis on a wide range of tropical fruits and vegetables. Furthermore, it provides empirical data supporting the use and validity of the Ricardian model.