Domestic Resource Cost Approach for International Competitiveness of Vietnamese Dailoan-Mango

Abstract

The purpose of this study is to ascertain the presence of a comparative advantage in terms of social costs in the export routes of DaiLoan-mango. The determination of this is facilitated by the use of the DRC/SER ratio, which stands for domestic resource cost to shadow exchange rate ratio. A comprehensive dataset including 843 observations was collected by the administration of questionnaires to individuals involved in various stages of the agricultural value chain, including farmers, cooperatives, collectors, wholesalers, supermarkets, and retailers. Based on the available data, it can be inferred that the three export routes for DaiLoan-mango have a comparative advantage, as shown by a DRC/SER ratio below one. The DRC/SER ratio exhibits variations within the range of 0.61 to 0.62 to 0.59 over Seasons 1-3 in the major export channel. In seasons 1, 2, and 3, the export channel 2 had values of 0.57, 0.59, and 0.59, respectively. During the first three seasons on export channel 3, the DRC/SER ratio exhibited values of 0.61, 0.64, and 0.45. The third agricultural season is regarded favorably among the three export channels because to its significant comparative advantage. Channels 2 exhibit a higher magnitude of export-related advantages in comparison to Channels 1 and 3. In order to maximize the benefits derived from favorable climatic, soil, and water conditions, it is recommended that policymakers and governmental entities implement incentive schemes aimed at enhancing product quality, eliminating trade barriers (including both tariff and non-tariff barriers), and optimizing the utilization of natural resources. The inclusion of these ingredients is of utmost importance for the continued development and profitability of the DaiLan-mango.