Based on RCR* and NPP estimates, the rice industry in MRD had a competitive advantage in rice production. The utilization of resources in rice production was efficient. A policy analysis matrix (PAM) of the rice industry in MRD showed that, the rice industry in MRD was profitable in terms of private and social prices. Rice exportation is mainly based on volume as the rice export quality is low. The MRD is the rice bowl of Vietnam, which contributes 50 percent of rice production and 90 percent of rice exportation. Even when contribution of agriculture and the rice sector to the economy has been reduced gradually, they still remain as the main sector. The increase in rice production could be attributed to both expansion of rice area and higher productivity. Based on the secondary data on rice production, trade, yield and other information during the 1975-2005 periods, Vietnamese rice production has increased because of the economic renovation since 1986. To identify the key factors affecting competitive and comparative advantage, a sensitivity analysis was conducted. Resource cost ratio (RCR*) in terms of private price was used to measure the competitive advantage, and resource cost ratio (RCR) in terms of social price was used to measure the comparative advantage of the rice industry. The study estimated the competitive and comparative advantage of the rice industry in the Mekong River Delta (MRD) of Vietnam.
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