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Research Journal of Business Management
  Year: 2016 | Volume: 10 | Issue: 4 | Page No.: 74-85
DOI: 10.3923/rjbm.2016.74.85
 
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Factors Affecting Export Performance of Thai Rice Exporter in the Chinese Market

Sonthaya Sampaothong

Abstract:
Background and Objective: Rice production and export, an important sector in Thailand’s economy, has been threatened by Vietnam as the major competitor. This study was undertaken with the aim of comparing the competitive advantage of Thai and Vietnamese rice exporters in the Chinese rice import market, in order to provide suggestions to improve the competitive advantage of the Thai rice exporters. The main research question of this study is what factors contribute to the competitiveness of Thai rice exporters in the Chinese market? Materials and Methods: Mixed methods design was used to answer the main research question. Data, collected through a quantitative producer survey and qualitative interviews with industry experts is analyzed using multiple regression, revealed comparative advantage indexes and brand switching analysis. Results: The results indicated that two important facets of the problem of Thailand’s position in the Chinese rice export market as compared to its most important competitor at the international level, Vietnam. First, Thailand is not competitive in this market, particularly in the high quality segment where it dominates. Second, however, Thailand is gradually losing competitiveness in the Chinese market to Vietnam. Conclusion: There are undoubtedly many reasons for this, including higher labor costs and increased costs associated with logistics and transport as well as comparatively discouraging and encouraging government policies toward the export market. Therefore, Thai government policy makers need to seriously consider revising or even discontinuing the paddy pledging program. The move to increase the price paid to farmers is laudable. However, it could eventually drive down production and eliminate the competitiveness of the Thai rice market.
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How to cite this article:

Sonthaya Sampaothong , 2016. Factors Affecting Export Performance of Thai Rice Exporter in the Chinese Market. Research Journal of Business Management, 10: 74-85.

DOI: 10.3923/rjbm.2016.74.85

URL: https://scialert.net/abstract/?doi=rjbm.2016.74.85

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