Comparative Analysis Of Thailand And Vietnam's Shrimp Export Competitiveness To The U.S.: Insights From The Revealed Comparative Advantage (RCA) Approach

Abstract

This study examines and compares the competitiveness of Thailand and Vietnam’s shrimp exports to the United States, benchmarking them against key competitors, including India and Ecuador, using the Revealed Comparative Advantage (RCA) index. The analysis utilizes export data from 2019 to 2023, applying the standard RCA formula to assess Thailand and Vietnam’s competitive positions in the U.S. market. Findings indicate that Thailand maintains a strong comparative advantage, with RCA values ranging from 1.369 to 1.684, whereas Vietnam’s RCA values remain below 0.128, suggesting a lack of competitive advantage in the U.S. market. Thailand’s RCA values reflect its well-established shrimp farming industry, despite challenges such as high production costs and structural limitations. Conversely, Vietnam benefits from an advanced shrimp processing sector but struggles with lower export competitiveness, potentially due to higher input costs, trade barriers, or currency fluctuations. A comparative analysis with India and Ecuador highlights key factors contributing to their market dominance, including large-scale production capabilities, cost efficiency, and strong trade relations. To enhance their market positions, Thailand must focus on reducing production costs and adopting sustainable aquaculture practices, while Vietnam should leverage its processing industry to increase value-added exports and explore new market opportunities. The study underscores the importance of trade policies, technological advancements, and supply chain integration in shaping long-term export competitiveness. The findings provide valuable insights for policymakers, industry stakeholders, and researchers seeking to enhance the global competitiveness of shrimp exports. Future research should explore the role of non-tariff barriers, environmental regulations, and consumer preferences in influencing shrimp trade dynamics. By incorporating additional economic indicators and comparative case studies, this research can offer deeper insights into global shrimp trade competitiveness.