Identifying comparative advantage sectors in Vietnam

Abstract

In the context of the implementation of the Free Trade Agreement (FTA), Vietnam\'s export has recorded strong growth and significant changes in the structure of goods; therefore, it is necessary to update and evaluate comparative advantage sectors in Vietnam. The study presented in this article used the Revealed Comparative Advantage index (RCA) to analyze the comparative advantage of 97 sectors in the period of 2007-2016. The research results show that the number of Vietnam\'s comparative advantage sectors ranges from 28 to 35. The RCA index tends to decrease in most sectors. The structure of Vietnam’s comparative advantage sectors in the period 2007-2016 has not experienced considerable changes; the comparative advantage sectors are those mainly attached to agricultural produce, raw materials, and intensive labour.