- Proposing solutions to improve the competitiveness of Vietnam's export tea industry in the context of extensive international economic integration.. Research subject The research subj
Trang 1VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES
NGUYEN LUONG LONG
ENHANCING VIETNAM TEA EXPORT’S COMPETITIVENESS CAPACITY
IN THE INTEGRATED PERIOD
Major: International Economics
Major code: 9.31.01.06
SUMMARY OF DOCTORAL THESIS
HANOI - 2020
Trang 2The thesis is completed at
GRADUATE ACADEMY OF SOCIAL SCIENCES
SUPERVISORS:
1 ASSOC PROF PHD DO DUC DINH
2 PHD TRAN DUC VUI
Reviewer 1: ASSOC PROF PHD NGUYEN THUONG LANG Reviewer 2: ASSOC PROF PHD DINH VAN THANH
Reviewer 3: ASSOC PROF PHD NGUYEN VAN DAN
The thesis shall be defended in front of the Thesis Committee at
Academy Level at Graduate Academy of Social Sciences
At hour date month year 2020
The thesis can be found at
- The National Library
- The Library of Graduate Academy of Social Sciences
Trang 3INTRODUCTION The necessity of the thesis
Vietnam is considered the cradle of the world tea tree We have been producing tea since time long long time ago, but our tea still doesn't have many famous brands Each year Vietnam exports around 130,000 tons of tea, ranking fifth in the world for tea production and export
Tea is a significant contributor to the total agricultural, forestry and fishery exports of Vietnam's agricultural sector, contributing significantly to the trade balance and curbing trade deficit of the country's economy Vietnam's tea products are now exported to 100 countries around the world Up to now, Vietnam has belonged to the five largest tea exporting countries, after Kenya, China, Sri Lanka and India According to the statistics
of the Vietnam Tea Association, in 2017, Vietnam's tea exports reached 139.8 thousand tons, turnover reached 228 million USD, increase 6.8% in volume and 4.8% in value compared to the same period of 2016 In 2018, the country's tea export reached 127.34 tons, valued at US $ 217.83 million, down 8, 9% in volume and 4.4% in value over the same period Although the average price in 2018 reached US $ 1,710.7 / ton, up 4.9% compared to 2017, Vietnam is still one of the countries with low tea export prices in the world
The process of international economic integration has and will bring many opportunities, and along with it are enormous challenges for Vietnam's exports in general and for tea exports in particular when more and more competitors become stronger in brand and quality has, they participate in the global market In particular,
in the context that Vietnam has participated in the CPTPP Agreement As an agricultural country, the topic of agricultural products always attracts the attention of domestic and foreign scholars The aspects related to the development of the tea industry are researched to find optimal solutions to improve production capacity and product value
In general, Vietnamese tea brand is still quite lackluster compared to other tea brands in the world The export market share of tea products is still small, unstable, lacking of big trading partners and mainly exported through intermediaries Although tea exports are among the world's leading commodities, they are still dependent on the fluctuations of prices in the world market, and cannot determine the export prices of the world markets
Therefore, the selection of the topic: "Enhancing Vietnam's export tea competitiveness capacity in the integrated period" makes a doctoral thesis which is not only theoretical but also helps solve problems Practical urgent issues are posed for the enhancement of export capacity and development of export tea products of Vietnam
Research purpose
The study aims to assess the current situation of export competitiveness of tea industry through criteria to assess competitiveness, find and build models of factors affecting competitiveness of the tea industry It provides solutions to enhance the
Trang 4competitiveness of Vietnam's export tea industry in the context of extensive international economic integration
- Proposing solutions to improve the competitiveness of Vietnam's export tea industry in the context of extensive international economic integration
Research subject
The research subject of the thesis is the competitiveness and factors affecting the competitiveness of the tea industry in Vietnam in the context of current international economic integration
Research scope
The study was conducted on tea export enterprises nationwide
Time for research: Secondary data used in the thesis was collected in the period
2010-2018 Primary survey data was collected in 2018
Data collection methods For secondary data
Secondary data was collected from state management agencies on tea industry such
as Ministry of Industry and Trade, General Statistics Office, General Department of Customs, Tea Industry Association , foreign organizations such as: FAO, IMF For primary data
Questionnaire of factors affecting competitiveness of tea export industry will be sent
to tea exporting enterprises in the North, Central and South of Vietnam through the address listed in the Statistical Yearbook 2018 - General Statistics Office Method
of sending questionnaires by E-Mail (email) or in person
Research methodology
Methods of descriptive statistical analysis:
The research uses econometric statistics method, comparative synthesis method; in addition, the method of data envelopment analysis (DEA) is used to estimate the competitive efficiency of the industry to analyzing the effectiveness of Vietnam's export tea industry in the context of integration
The econometric model for analyzing the survey results collected includes:
- Analysis of reliability scale
The reliability of the scale is assessed by the method of intrinsic consistency through Cronbach's Alpha coefficient Use the Cronbach’s Alpha reliability coefficient method before analyzing the EFA factor to eliminate inappropriate variables because these garbage variables can create fake factors (Nguyen Dinh Tho & Nguyen Thi Mai Trang, 2009)
- Factor analysis
Before testing scientific theory, it is necessary to assess the reliability and value of the scale Cronbach Alpha method used to assess the reliability of the scale The
Trang 5Exploratory Factor Analysis (EFA) method helps us to evaluate two important value types of the scale: convergent and discriminant values
- Multivariate regression analysis by the method of linear structure (Structural Equation Modeling, SEM)
PLS-SEM; also known as the PLS path model used in case studies for the main purpose of applying structural modeling is to predict and explain target structures (Rigdon, 2012)
In case of research situations where finding theoretical basis is difficult, with the intention of researching this issue in the past, researchers should consider using PLS-SEM as an alternative method for CB- SEM This is especially true if the main goal of applying structural modeling is to predict and explain target structures (Rigdon, 2012)
New scientific contributions of the thesis
Theoretical contribution of the thesis
Through systematizing the basic theories of competition and competitiveness of goods, especially, for the tea industry in terms of international economic integration The thesis will provide theoretical framework and research model, hypotheses about the set of criteria to improve the competitiveness of the tea industry and the factors affecting the competitiveness of the tea industry
Define a set of basic criteria to improve the competitiveness of exported tea products including: Market share of tea products, Quality of raw materials, Technology capacity of tea enterprises, Access to capital of enterprises in the tea industry, Linkage capacity, and Product brands
Contribute to the development of a competitive model based on diamond model of M.Porter (1958) in specific conditions of Vietnam's export tea industry Specifically, the author proposes a research framework comprising 6 factors affecting tea industry's competitiveness, including: Factors of production conditions, Demand for products, Management, Roles of the government, Indigenous Culture Thereby it will be a valuable study for the reference of scholars in research and teaching
Practical contribution of the thesis
The results of the competitiveness assessment criteria have pointed out the needs, favorable prerequisites and difficulties that hinder the competition of Vietnamese tea products The dissertation also clarified the scientific foundation for forming and improving the competitiveness of Vietnamese exported tea products Based on the results of testing the research hypothesis, the author proposes factors affecting the competitiveness of Vietnam's export tea industry including: (1) production factors that have a positive relationship to capacity of export tea industry competitiveness; (2) demand for products have a positive impact on the competitiveness of the tea industry; (3) management factors have a positive impact on the competitiveness of the export tea industry; (4) government policies affecting competitiveness of the export tea industry; (5) marketing activities have a strong impact on the competitiveness of the tea industry; (6) indigenous culture has no impact on improving the competitiveness of the tea industry
Trang 6Research framework of the thesis
Structure of the thesis
In addition to the Introduction, Conclusion and Appendix, the thesis consists of 4 chapters:
Chapter I: Literature reviews of Vietnam's export tea competitiveness in the integrated period
Chapter II: Theory of tea export competitiveness in the integrated period
Chapter III: Current situation of Vietnam's export tea industry competitiveness in the integrated period
Chapter IV: Solutions to enhancing the competitiveness of Vietnam's export tea industry in the integrated period
CHAPTER 1 LITERATURE REVIEWS OF VIETNAM’S EXPORT TEA
Typical as:
- Wenner, Robert (2011), in the study "The long history of Vietnamese tea: Culture, production and development prospects." Independent Study Project (ISP) Collection Paper 1159
- Ha Tuan Minh (2014), "Establishing a Transformative Learning Framework for Promoting Organic Farming in Northern Vietnam: A Case Study on Organic Tea Production in Thai Nguyen Province." Asian Journal of Business and Management
- - Study overview
- Theories about competitiveness and enhancing
competitiveness
- Criteria for evaluating competitiveness of the tea industry
- Factors affecting the competitiveness of the tea industry
- Main directions and solutions to improve the competitiveness
Trang 7- Nguyen Viet Khoi, Chu Huong Lan, To Linh Huong (2015), "Vietnam tea industry: an analysis from value chain approach"
- ICARD-MISPA Research Fund (2005) "Vietnam's agricultural competitiveness in AFTA integration" TOR MISPA A / 2003/06
- Le Thi Binh (2010), "Competitiveness of some major agricultural export products
of Vietnam in the context of international economic integration" University of Economics and Business - Vietnam National University, Hanoi
- Nguyen Thu Ha (2011), "Building and developing Vietnamese tea brand in the context of international economic integration", University of Economics - Vietnam National University, Hanoi
The published researches on the topic of competitiveness in general and in the export tea industry in particular are very rich and are a useful source of references and inheritance However, each project has its own goals, approaches, and scope of research, so it may not always satisfy the diverse needs of readers At the same time, with time, new issues always arise and require new research and research, especially solutions to develop and improve competitiveness
1.2 Some remarks about the research gap and research directions of the thesis
t this study, new issues of competitiveness enhancement need to be studied, such as:
- Criteria for evaluating the competitiveness of Vietnam's export tea industry
- Factors affecting the competitiveness of Vietnam's export tea industry
- It is necessary to review all policies, the legal system, research and analyze new issues in the context of the deepening international economic integration with new FTAs such as CPTPP, EVFTA opening up prospects enormous for trade and investment, popularizing standards for intellectual property rights (IPR) protection, environment and labor standards
All the above issues show that it is necessary to make theoretical and practical sense
to continue the topic of improving the competitiveness of Vietnam's export tea products in a new context
CHAPTER 2 THEORY ON COMPETITIVE CAPABILIITY IN THE INTEGRATED PERIOD
2.1 Theory on competitive capability
2.1.1 Concept and category of competitive capability
According to the economic dictionary, competition is understood as the process of competing or competing between at least two competitors in order to gain resources
or advantages of products or customers on their side, to gain maximum benefits American economist M.Porter thinks that competition is gaining market share The essence of competition is to seek profit, which is higher than the average profit that the business has
Competitiveness is divided into 4 levels including: National Competitiveness, Industry Competitiveness, Enterprise Competitiveness, and Product Competitiveness
Trang 8Figure 2.1 System of factors
determining competitive advantage
2.1.2 Sector competitiveness
So far, there have been many efforts to explain the success in international competition
of industries under the view of international trade Although the classical theory of international trade does not mention the concept of competition and competitiveness, but when the product is exported to the world market, the increase in the market share of products is a proof that the product is more competitive
2.1.3 Content of competitiveness research under the "Diamond" model of M Porter
In the Competitive Advantage of Nations, Michael Porter, a professor at Harvard University (USA) came up with a model that can be used to analyze why some countries are capable of competing The competition is better than other countries and why some products of some countries are more likely to compete successfully than products in others It includes the following: Conditions of inputs, Demand conditions, Supporting and related industries, Business strategy, organizational structure and competitive environment, Role of opportunity, and the role of the Government
2.1.4. Views on improving the competitiveness of Vietnam's export tea industry
Based on the analysis of arguments on competition, competitiveness, and the context of international economic integration, the author offers a viewpoint to improve the competitiveness of Vietnam's export tea industry as " a group of businesses that produce tea-related products that compete directly with each other to achieve the goal of increasing market share, increasing sales through the use of low-cost strategies or creating products with outstanding features compared to other companies in the same industry or similar industries on the market ”
2.2 The criteria for evaluating the competitiveness of the tea industry in the integrated period
- Market share of tea products
- Quality of raw material sources
- Technological capacity of tea business
Trang 9- Access to capital of tea enterprises
- Business linkage capacity
- Product brands
2.3 Factors affecting the competitiveness of the tea industry
According to Michael Porter's diamond model, in the previous section, the national competitive advantage is formed from a group of factors such as: conditions of production factors, conditions of demand, supporting industries In this section, the tea industry, with Vietnamese characteristics, will affect the following factors:
- Conditions of production factors
- The conditions of the demand
- Conditions of management
- The role of government
- Marketing activities
- The indigenous culture
2.4 Research diagram and establishment of factors affecting the competitiveness of the tea industry
H2: Management conditions have a positive impact on the competitiveness of the tea industry
H3: Marketing activities have a positive impact on the competitiveness of the tea
Trang 10H4: The role of government has a positive impact on the competitiveness of the tea industry
H5: Indigenous culture has a positive impact on the competitiveness of the tea industry
H6: Demand conditions for products have a positive impact on the competitiveness of the tea industry
2.4.2 Research design
Figure 2.3 Process of conducting research
2.4.3 The scale
Table 2.4 Encryption and scale origin
Factors Indicator Encode Origin of the scale
Production
Conditions
Human Resources NTSX1 Momaya (2004),
Research by Onar &
Polat (2010), Phung Thi Trung (2016) and To Linh Huong (2018)
Infrastructure and technology
Business structure QT1 Nguyen Thanh Long,
2016; Phung Thi Trung 2016; To Linh Huong,
2018
Corporate culture QT2 Business strategy QT3
Marketing
Activities
Market research HDM1 Thompson, Strickland &
Gamble 2007; Onar &
Polat 2010; Sauka, 2014
Distribution channel HDM3 Research products HDM4
Goverment
Stable macro environment
VTCP1 Sauka (2014), Nguyen
Thanh Long (2016), To Linh Huong (2018) and Building a clear and VTCP2
Trang 11transparent legal corridor
Farming practices VHBD1 The author develops on
the basis of qualitative research
History, literature on tea
VHBD2 Tea drinking culture VHBD3
Demand
Conditions
Gamble (2007) and To Linh Huong (2018) Momaya (2004), Research by Onar &
Polat (2010), Phung Thi Trung (2016) and To Linh Huong (2018)
2.4.4 Data collection methods
The author uses a combination of 2 sources: primary data and secondary data
Secondary data: the author will search and select the results of published works and scientific papers related to the country and abroad in order to find a model of factors affecting industry competitiveness tea The author uses search aids such as Proquest, ScienceDirect, Emerald, Scholar.google,
Primary data: collected by survey method from the survey by questionnaire dedicated to the topic
The survey was conducted directly with paper questionnaires, soft copies and via face-to-face meetings or emailing to tea producing and exporting enterprises Number of questionnaires sent: about 450 It is expected that the number of replies will result in 400 replies
2.4.5 Data analysis method
Secondary data is collected by the author from research works, documents, books, and specialized newspapers The author uses statistical methods to synthesize the data and then proceeds to use analytical techniques to process the data
Primary data collected through the questionnaire was analyzed by statistical data analysis tool SPSS, SmartPLS Specifically, the main techniques used include:
Conventional analytical techniques: such as descriptive statistics to give an overall picture of demographics as well as estimates of the (average) mean of the criteria Multi-factor analysis technique: to identify the components of factors affecting the competitiveness of export tea industry Analysis techniques of semi-linear linear structure model: to determine the complex interaction between elements and components of a model
According to Henseler & Chin (2010), the research model PLS-SEM smallest variance value was assessed through two steps: evaluation of measurement model and structural model First, the measurement model is assessed through the
Trang 12reliability, convergence and discriminatory evaluation of measurement concepts in the model
2.5 Experiences in improving tea industry's competitiveness in terms of integration and lessons for Vietnam's export tea industry
From the experiences of China, Sri Lanka and Kenya, lessons learned for Vietnam include:
- Having a reasonable tea industry development policy, organizing the tea industry very closely and consistently under the direction of the government
- Develop businesses; build a team of qualified entrepreneurs All parties involved in the tea value chain must benefit
- Actively apply science and technology to create new tea varieties with higher yield and quality At the same time, changing farming techniques to meet the strict requirements of food safety standards of developed countries
- Invest in building and restoring symbols of long-standing tea drinking culture Gradually assert as the cradle of tea drinking culture of mankind To strongly develop high-class tea brands for domestic consumption as well as export to fastidious markets
CHAPTER 3 CURRENT SITUATION OF COMPETITIVE CAPABILITY
IN VIETNAM'S EXPORT TEA INDUSTRY IN THE INTEGRATED
PERIOD
3.1 Characteristics of the development of Vietnam's tea industry
3.1.1 Tea area harvested
From 1990 to present, Vietnam tea area has increased The average period of 2010-2017 increased by 1.26% / year, from 113,200 ha in 2008 to 123,188 ha in
2017 Through Table 3.1, tea area has increased in this period but in general, the growth rate is slow compared to with the wishes of many localities growing tea Table 3.1 Area and quantity of dry tea nationwide
Increase (%)
Trang 13(Source: FAO data)
3.1.2 Tea production quantity
In the period of 2010-2014, the average output increased by 4.23% / year, from 198,466 tons in 2010 to 228,360 tons in 2014 In the period of 2015-2017, the output continued to increase an average of 4.45% / year, by 236,000 tons in 2015, and 260,000 tons by 2017 (see table 3.1) The relatively high production of the whole tea industry has made Vietnam ranked fifth among the largest tea producing countries in the world, accounting for over 3% of global tea production (see Table 3.2)
Table 3.2 Proportion of output of some tea producing countries in 2014-2017
ge (%)
Value (tons)
Perc enta
ge (%)
Value (tons)
Perc enta
ge (%)
Value (tons)
Perc enta
ge (%)