INTRA-INDUSTRY TRADE IN AGRICULTURAL PRODUCTS BETWEEN VIETNAM AND EUROPEAN UNION (EU) MEMBERS

Abstract

Vietnam is still primarily an agricultural country where farmers and land workers occupy the most substantial proportion of the national population. Therefore the growth of agricultural trade would contribute to enhancing the incomes and living standards of the Vietnamese rural population. In particular, Intra – industry trade (IIT) in farm products is regarded as a significant attribute to the growth of Vietnamese agricultural trade. The study focuses on calculating and analyzing IIT in the agricultural-food sector between Vietnam and the European Union (EU) members and identifying the country-specific determinants affecting the IIT level. From that, suggestions for Vietnam to improve the agricultural industry and expand agricultural exports in the context of newly signed EU-Vietnam Free Trade Agreement (EVFTA) will be discussed.