The analysis of determinants and Competitive advantages on Vietnam seafood export: A gravity model approach

Abstract

The aim of this study is to investigate the macro factors and how those determining factors influence Vietnam's seafood exports. The study uses the gravity model approach in international trade based on panel data to evaluate the export of Vietnamese seafood to main trading partners, covering the period from 2005 to 2020. The study uses a variety of regression approaches, including the traditional regression method, regression analysis method, FEM, and REM. The estimation results show that six factors have significant impacts on Vietnam's seafood export turnover, particularly including GDP of importing countries, geographical distance, and foreign direct investment in Vietnam, real interest rate, exchange rate and trade freedom index. The GDP of the importing countries, foreign direct investment, the exchange rate, and trade freedom index all have beneficial effects on Vietnam's seafood exports. The remaining variables, on the other hand, have negative influences on Vietnamese seafood exports flow. Based on the findings of the study, the authors offer several practical recommendations, which will be useful suggestions for relevant ministries, agencies, as well as policymakers in the coming years as the economic development of Vietnam has rapidly accelerated