Bài tiểu luận nhóm kết thúc học phần International Economics | Đại học Quốc gia Hà Nội

Vietnam National University International School
FINAL-EXAM GROUP ASSIGNMENT
Course name: International Economics
Academic Year (Semester): 2021-2022 Class code : INS200501 Instructor
: Prof. Trần Thị Mai Thành Group 7 FULL NAME STUDENT CODE Lê Thị An 18071276 Vũ Sao Mai 20070249 Vũ Công Nam Anh 21070026 Chu Minh Quân 20070585 Table of Contents
Part 1………………………………………………2 Part
2………………………………………………3
I.Executive Summary…………………………………………...3
II.Introduction……………………………………………………4
III.Analyzing……………………………………………………..5
IV.Conclusion……………………………………………………13
V.References…………………………………………………….14 2|Page Part 1
According to data from the IMF, we have a summary of the current account balance for the quarters of 2021 as follows: Q1 Q2 Q3 Q4 - - 3,998. 584.0 4,571 .0 3,823 .0 0 Surplu Surplu s Deficit Deficit s Q4
With regards to a drawn out hole, Vietnam had two sequential quarters of import/export imbalances,
Q2 and Q3. In spite of the fact that there was an exchange surplus Q1 and Q4, it was not sufficiently
enormous to compensate for the shortage. in administrations and essential pay.
According to Banking Magazine, the Covid-19 pandemic has severely affected service export
activities, especially tourism services. The almost complete freeze of tourism activities has caused
Vietnam's service export revenue in 2021 to drop by about half compared to 2020.
Meanwhile, service import spending has increased (mainly strong growth from freight services).
Therefore, service rolling in 2021 will sharply increase the deficit.
With many advantages of a safe investment environment, preferential policies, and stable
macroeconomics, Vietnam has attracted long-term investment capital flows, short-term
investments as well as mobilized loan capital flows from international financial markets. This
affects the current account, narrowing the surplus or increasing the deficit.
The source of remittances and trade surplus of goods have partially compensated for the deficit of
investment income and services, becoming important sources of foreign currency to support Vietnam's current account.
Trade in goods gradually recovered and reached a record level in 2021 in terms of total import and
export turnover. Trade and the continued remittance of remittances to Vietnam partially offset the
growing deficit of investment and service income. Therefore, the current account in
2021 will have a slight deficit.
Thus, although Vietnam's economy continues to face many difficulties due to the epidemic in 2021,
foreign economic activities still achieved many achievements in terms of trade in goods, attracting
remittances and direct investing. Part 2 I. Executive Summary
In this assignment, we analyzed the export data of Vietnam and Malaysia in 2010 and 2020 on the
Trade map page. We used the RCA formula to find out the 5 commodities with the highest/lowest
advantages in 2010 and 2020 for each country to show the change in commodity exports. Then,
we took five commodities that the two countries export together to determine their comparative
advantage based on the theory of trade and integration trade. II. Introduction
1. Structure and scope of the report
Structure of the report is the report will analyze the export data of Vietnam and Malaysia in
different times: 2010 and 2020.The report also has deeper analysis of the export situation of the
two countries through RCA. Hence, the report will show a comparative advantage of each product of the 2 countries.
About the scope, the report helps us gain a deeper understanding of the export situation of Malaysia
and Vietnam in 2010 and 2020 through collected and aggregated analytical data. Next, through the
RCA index, we can understand more about the export structure of each country year by year and 4|Page
the movement of that export structure. Hence, by comparing the strong export products of Vietnam
and Malaysia, we know the comparative advantages and disadvantages of each product of the two countries. 2. Research
Comparative advantage is an economy's ability to produce a particular good or service at a lower
opportunity cost than its trading partners. Comparative advantage is used to explain why
companies, countries, or individuals can benefit from trade.
The RCA index is defined as the ratio of two shares. The numerator is the share of a country's total
exports of the commodity of interest in its total exports. The denominator is the share of world
exports of the same commodity in total world exports. Through the report, it helps us to understand
more deeply about Comparative advantage, RCA of each country, and why this country exports item A and not item B. 3. Issue Description
Vietnam's comparative advantages have been proven to be based on natural resources and labor-
intensive commodities, in both 2010 and 2020, highest RCA scores belongs to products such as
coffee, tea, silk and straw, esparto, and other plaiting material manufacturers; basketware and
wickerwork. Vietnam's specialization is unique among Asian rising economies, since it continues
to primarily rely on "horizontal" commerce, in which traded items are manufactured from start to
finish in the same nation. Its exports are based on its natural and manpower resources, while its
imports are mostly made up of equipment and intermediate commodities. These are the primary
reasons why the variations in Vietnam's top 5 highest and lowest RCA scores between 2010 and 2020 are trivial.
Malaysia has effectively diversified its economy from one that was primarily dependent on
agriculture and commodities to one that today hosts healthy manufacturing and service sectors,
propelling the country to become a prominent exporter of electrical appliances, parts, and
components since the changes in industry concentration recently. Still, the country’s strong
advantage of agriculture is shown as products such as animal or vegetable fats and oils and their
cleavage products; prepared edible fats; vegetable oil,etc. are always on the top grid.
Further analysis and deeper study of the changes of the two countries through different periods of time will be shown below. III. Analyzing
Vietnam's highest RCA score 2010
- 46. Manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork: 16.6274
- 9. Coffee, tea, maté and spices: 15.0348
- 64. Footwear, gaiters and the like; parts of such articles: 10.8543
- 3. Fish and crustaceans, molluscs and other aquatic invertebrates: 10.1953 - 10. Cereals: 7.5809 2020
- 46. Manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork: 9.2980
- 64. Footwear, gaiters and the like; parts of such articles: 8.7003
- 61. Articles of apparel and clothing accessories, knitted or crocheted: 4.6008 - 50. Silk: 4.4393
- 62. Articles of apparel and clothing accessories, not knitted or crocheted: 4.4333
Malaysia’s highest RCA score 2010
- Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal: 15.5395991
- Tin and articles thereof: 8.2839649
- Vegetable plaiting materials; vegetable products not elsewhere specified or included: 5.1191601
- Rubber and articles thereof: 3.4853728
- Wood and articles of wood; wood charcoal: 2.9588083 2020
- Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal: 9.6878124
- Tin and articles thereof: 6.6578302
- Rubber and articles thereof: 4.6694841
- Vegetable plaiting materials; vegetable products not elsewhere specified or included: 4.5541681
- Musical instruments; parts and accessories of such articles: 2.3083806 Vietnam's lowest RCA score 2010
- Arms and ammunition; parts and accessories thereof: 0.00
- Nickel and articles thereof: 0.0002182
- Works of art, collectors' pieces and antiques: 0.0092006
- Cork and articles of cork: 0.0171298
- Photographic or cinematographic goods: 0.0190360 6|Page 2020
- Arms and ammunition; parts and accessories thereof: 0.0000798
- Photographic or cinematographic goods: 0.0045265
- Railway or tramway locomotives, rolling stock and parts thereof; railway or tramway track fixtures …: 0.0092623
- Furskins and artificial fur; manufactures thereof: 0.0110324
- Works of art, collectors' pieces and antiques: 0.0128795
Malaysia’s lowest RCA score 2010 - Cereals: 0.0036576
- Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles …:0.0098357
- Cork and articles of cork: 0.0128643
- Umbrellas, sun umbrellas, walking sticks, seat-sticks, whips, riding-crops and parts thereof: 0.0157852
- Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or ...: 0.0187550 2020
- Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles …: 0.0272248 - Silk: 0.0282167
- Products of animal origin, not elsewhere specified or included: 0.0304224
- Manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork :0.0305188
- Pharmaceutical products: 0.0350496
World's imports from world Viet Nam's exports to world Viet Nam RCA Malaysia's exports to world Malaysia RCA Product code Product label
Value in 2010 Value in 2020 Value in 2010 Value in 2020
Value in 2010 Value in 2020 RCA RCA RCA RCA 2010 2020 2010 2020 TOTAL All products 15338718314 17719396968 72236665 281441457 198790691 233553703 01 Live animals 19082182 22821029 2670 7003 0,0297 0,0193 174394 209917 0,7052 0,6979 02 Meat and edible meat offal 93337870 136033917 39321 68662 0,0895 0,0318 29321 32695 0,0242 0,0182
Fish and crustaceans, molluscs and other 10,195 aquatic invertebrates 3 03 85602060 113756574 4110094 5771044 3,1940 698789 619296 0,6299 0,4130
Dairy produce; birds' eggs; natural honey;
edible products of animal origin, not elsewhere ... 04 68600697 92118575 96457 175413 0,2986 0,1199 292996 636107 0,3296 0,5239
Products of animal origin, not elsewhere specified or included 05 7243783 9523977 12269 73335 0,3596 0,4848 6750 3819 0,0719 0,0304
Live trees and other plants; bulbs, roots and
the like; cut flowers and ornamental foliage 06 17707694 20575109 26449 78749 0,3172 0,2410 130357 108086 0,5680 0,3986
Edible vegetables and certain roots and tubers 07 57072412 77170810 295561 413537 1,0996 0,3374 144378 187660 0,1952 0,1845
Edible fruit and nuts; peel of citrus fruit or melons 08 83693086 141710892 1310258 5087836 3,3243 2,2604 96930 240347 0,0894 0,1287 15,034 8
09 Coffee, tea, maté and spices 35834845 51005166 2537295 3166060 3,9081 108221 125262 0,2330 0,1863 10 Cereals 91070833 128493753 3251394 2930515 7,5809 1,4359 4317 27784 0,0037 0,0164
Products of the milling industry; malt;
starches; inulin; wheat gluten 11 15077734 20943978 387663 988861 5,4595 2,9726 63841 90373 0,3267 0,3274
Oil seeds and oleaginous fruits;
miscellaneous grains, seeds and fruit; industrial or medicinal ... 12 73726537 114970520 85539 207224 0,2464 0,1135 34096 35408 0,0357 0,0234
Lac; gums, resins and other vegetable saps and extracts 13 5258355 8109444 872 62611 0,0352 0,4861 6302 8524 0,0925 0,0797
Vegetable plaiting materials; vegetable
products not elsewhere specified or included 14 912071 1524813 9409 30893 2,1905 1,2756 60511 91530 5,1192 4,5542
Animal or vegetable fats and oils and their
cleavage products; prepared edible fats; 15,539 animal ... 15 80447136 105639066 100871 248506 0,2662 0,1481 16201580 13489259 6 9,6878
Preparations of meat, of fish or of
crustaceans, molluscs or other aquatic invertebrates 16 35348409 48521850 910012 2512419 5,4665 3,2600 153883 299692 0,3359 0,4686
17 Sugars and sugar confectionery 45331165 45904891 117301 201276 0,5495 0,2761 254065 285800 0,4325 0,4724
18 Cocoa and cocoa preparations 39082318 50511566 8199 22556 0,0445 0,0281 1302521 1483042 2,5716 2,2275
Preparations of cereals, flour, starch or milk; pastrycooks' products 19 46892421 82009267 295528 780373 1,3382 0,5991 822349 1246944 1,3532 1,1536
Preparations of vegetables, fruit, nuts or other parts of plants 20 47028850 62483818 181906 929787 0,8213 0,9369 141554 142005 0,2322 0,1724
21 Miscellaneous edible preparations 50294749 85508890 99324 837127 0,4193 0,6164 722888 1383984 1,1090 1,2280
22 Beverages, spirits and vinegar 87176915 120522144 122413 245521 0,2982 0,1283 557173 541734 0,4932 0,3410
Residues and waste from the food industries; prepared animal fodder 23 60211332 86306811 134826 793774 0,4755 0,5790 326520 642162 0,4184 0,5645
Tobacco and manufactured tobacco substitutes 24 38697484 46290000 209356 232072 1,1488 0,3156 321770 78374 0,6416 0,1285
Salt; sulphur; earths and stone; plastering materials, lime and cement 25 48859497 50550719 216948 1773136 0,9428 2,2084 477980 388806 0,7548 0,5835 26 Ores, slag and ash 226479406 288879953 126313 133296 0,1184 0,0291 154298 1219602 0,0526 0,3203
Mineral fuels, mineral oils and products of
their distillation; bituminous substances; mineral ... 27 2409354776 1633389343 7979703 2672021 0,7033 0,1030 31513585 26457576 1,0092 1,2289
Inorganic chemicals; organic or inorganic
compounds of precious metals, of rare-earth metals, ... 28 121213508 118931948 113785 1056600 0,1993 0,5593 424991 977309 0,2705 0,6234 8|Page 29 Organic chemicals 397225391 414753248 207672 581294 0,1110 0,0882 3731323 3423743 0,7248 0,6263 30 Pharmaceutical products 450276139 715440758 52006 206196 0,0245 0,0181 173854 330518 0,0298 0,0350 31 Fertilisers 59317738 64857454 152810 328851 0,5470 0,3192 436737 592056 0,5681 0,6926
Tanning or dyeing extracts; tannins and their
derivatives; dyes, pigments and other colouring ... 32 70318311 80711248 37767 153311 0,1140 0,1196 579327 596795 0,6357 0,5610
Essential oils and resinoids; perfumery,
cosmetic or toilet preparations 33 86249425 147393866 80631 324325 0,1985 0,1385 328240 411283 0,2936 0,2117
Soap, organic surface-active agents, washing
preparations, lubricating preparations, artificial ... 34 47544503 67792847 291801 686716 1,3032 0,6378 741950 975180 1,2041 1,0913
Albuminoidal substances; modified starches; glues; enzymes 35 23236617 33321871 63368 190354 0,5791 0,3597 93780 151421 0,3114 0,3448
Explosives; pyrotechnic products; matches;
pyrophoric alloys; certain combustible preparations 36 3929754 4285287 1613 2365 0,0872 0,0347 12654 14483 0,2485 0,2564
37 Photographic or cinematographic goods 17892076 13769882 1604 1486 0,0190 0,0068 123008 136520 0,5305 0,7522
38 Miscellaneous chemical products 157579868 236813438 237423 947115 0,3199 0,2518 3077897 3973315 1,5071 1,2729
39 Plastics and articles thereof 498890126 612739987 1371288 5161178 0,5837 0,5303 6181847 8181528 0,9561 1,0130
40 Rubber and articles thereof 174055461 181792148 2935426 4684684 3,5811 1,6224 7862196 11188757 3,4854 4,6695
Raw hides and skins (other than furskins) and leather 41 26260671 14973418 245165 326584 1,9824 1,3732 23731 20462 0,0697 0,1037
Articles of leather; saddlery and harness;
travel goods, handbags and similar containers; articles ... 42 54576211 67067840 856880 2817095 3,3339 2,6445 41366 65262 0,0585 0,0738
Furskins and artificial fur; manufactures thereof 43 6244241 2864576 2396 1264 0,0815 0,0278 3341 25649 0,0413 0,6793
44 Wood and articles of wood; wood charcoal 112618810 138779597 866613 3504261 1,6340 1,5898 4318518 2328278 2,9588 1,2728 45 Cork and articles of cork 1673447 1916189 135 902 0,0171 0,0296 279 70 0,0129 0,0028
Manufactures of straw, of esparto or of other
plaiting materials; basketware and 16,627 wickerwork 46 1891600 2045945 148123 302151 4 9,2980 895 823 0,0365 0,0305
Pulp of wood or of other fibrous cellulosic
material; recovered (waste and scrap) paper or ... 47 49628401 45424660 9335 16942 0,0399 0,0235 12063 384068 0,0188 0,6415
Paper and paperboard; articles of paper pulp, of paper or of paperboard 48 173230644 158569213 380184 1392392 0,4660 0,5528 957485 930649 0,4265 0,4453
Printed books, newspapers, pictures and
other products of the printing industry; manuscripts, ... 49 41542162 35956259 6854 95246 0,0350 0,1668 237605 242373 0,4413 0,5114 50 Silk 2489907 1056691 43779 74508 3,7335 4,4393 3631 393 0,1125 0,0282
Wool, fine or coarse animal hair; horsehair yarn and woven fabric 51 11797682 8397198 5504 17741 0,0991 0,1330 39864 10013 0,2607 0,0905 52 Cotton 53725451 40685150 676060 2707568 2,6720 4,1899 179574 246192 0,2579 0,4591
Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn 53 3267686 3952307 35829 30371 2,3282 0,4838 5409 2959 0,1277 0,0568
Man-made filaments; strip and the like of man-made textile materials 54 36109595 35612212 499972 979956 2,9400 1,7325 674795 357705 1,4419 0,7621 55 Man-made staple fibres 34176873 30620055 487824 522074 3,0308 1,0735 266504 262981 0,6017 0,6516
Wadding, felt and nonwovens; special yarns;
twine, cordage, ropes and cables and articles thereof 56 18954404 27208245 123648 426753 1,3852 0,9875 151318 228827 0,6160 0,6381
57 Carpets and other textile floor coverings 12519242 13432216 21448 284064 0,3638 1,3315 18777 12135 0,1157 0,0685
Special woven fabrics; tufted textile fabrics;
lace; tapestries; trimmings; embroidery 58 9414288 8864585 32382 119030 0,7304 0,8454 31734 21691 0,2601 0,1856
Impregnated, coated, covered or laminated
textile fabrics; textile articles of a kind suitable ... 59 18860940 20517072 289218 584395 3,2561 1,7933 51154 67126 0,2093 0,2482
60 Knitted or crocheted fabrics 20329683 26724615 155077 1134208 1,6198 2,6720 153197 231536 0,5815 0,6573
Articles of apparel and clothing accessories, knitted or crocheted 61 169562353 187489602 4899446 13700827 6,1355 4,6008 658121 933861 0,2995 0,3779
Articles of apparel and clothing accessories, not knitted or crocheted 62 172701072 189303562 5219491 13329806 6,4175 4,4333 372066 311376 0,1662 0,1248
Other made-up textile articles; sets; worn
clothing and worn textile articles; rags 63 45371911 123333944 814054 3188384 3,8098 1,6276 132745 154017 0,2257 0,0947
Footwear, gaiters and the like; parts of such 10,854 articles 3 64 102310076 124858230 5229846 17253936 8,7003 221502 150534 0,1671 0,0915 65 Headgear and parts thereof 6760831 9531023 153981 452888 4,8361 2,9917 22692 51469 0,2590 0,4097
Umbrellas, sun umbrellas, walking sticks,
seat-sticks, whips, riding-crops and parts thereof 66 2615155 2711706 4729 18641 0,3840 0,4328 535 1282 0,0158 0,0359 10|Page
Prepared feathers and down and articles
made of feathers or of down; artificial flowers; articles ... 67 4220552 5484325 15795 58862 0,7947 0,6757 538 1968 0,0098 0,0272
Articles of stone, plaster, cement, asbestos, mica or similar materials 68 37363822 47468992 147570 620584 0,8386 0,8231 289796 613232 0,5985 0,9801 69 Ceramic products 39680794 45937201 317047 565032 1,6966 0,7744 276058 219612 0,5368 0,3627 70 Glass and glassware 65018893 73096546 370008 881414 1,2084 0,7592 946306 1291895 1,1230 1,3409
Natural or cultured pearls, precious or semi-
precious stones, precious metals, metals clad ... 71 414151627 720351154 2831684 2754797 1,4518 0,2408 2646490 1743566 0,4931 0,1836 72 Iron and steel 394373969 339136842 1140181 5339979 0,6139 0,9913 1794808 5167731 0,3512 1,1561 73 Articles of iron or steel 254828628 277215889 832908 3072628 0,6940 0,6978 2712079 2044323 0,8212 0,5595
74 Copper and articles thereof 158191395 154071794 326658 1229136 0,4385 0,5023 1506155 2164473 0,7346 1,0658
75 Nickel and articles thereof 31147151 25011692 32 18954 0,0002 0,0477 29099 156879 0,0721 0,4759
76 Aluminium and articles thereof 143457401 163410452 129923 1419205 0,1923 0,5468 1232942 3762823 0,6632 1,7470 78 Lead and articles thereof 6683370 6525427 17746 66692 0,5638 0,6435 89076 128890 1,0284 1,4986 79 Zinc and articles thereof 13375886 16292184 21281 15016 0,3378 0,0580 151643 133899 0,8748 0,6235 80 Tin and articles thereof 6942002 4436513 27994 8482 0,8563 0,1204 745298 389325 8,2840 6,6578
81 Other base metals; cermets; articles thereof 16018837 17433634 23889 51085 0,3167 0,1845 47272 120408 0,2277 0,5240
Tools, implements, cutlery, spoons and forks,
of base metal; parts thereof of base metal 82 51812616 59805242 157914 704222 0,6472 0,7414 292935 137950 0,4362 0,1750
83 Miscellaneous articles of base metal 52570172 66079756 112959 608347 0,4563 0,5796 304698 254132 0,4472 0,2918
Machinery, mechanical appliances, nuclear
reactors, boilers; parts thereof 84 1837132498 2163969186 3140420 18416121 0,3630 0,5358 29927272 20176839 1,2570 0,7074
Electrical machinery and equipment and
parts thereof; sound recorders and reproducers, television ... 85 2145592590 2962564382
7080771 111092752 0,7008 2,3609 55775046 86403702 2,0058 2,2127
Railway or tramway locomotives, rolling stock
and parts thereof; railway or tramway track fixtures ... 86 26101935 26611234 29510 4436 0,2401 0,0105 94915 64457 0,2806 0,1838
Vehicles other than railway or tramway
rolling stock, and parts and accessories thereof 87 1077789345 1290194336 709203 3157264 0,1397 0,1541 1508266 1947403 0,1080 0,1145
88 Aircraft, spacecraft, and parts thereof 185164299 159849015 32407 449558 0,0372 0,1771 689190 2224152 0,2872 1,0556
89 Ships, boats and floating structures 109045083 71638387 510229 953242 0,9936 0,8378 682950 194529 0,4833 0,2060
Optical, photographic, cinematographic,
measuring, checking, precision, medical or surgical ... 90 463277176 603828845 820062 3557465 0,3759 0,3709 5560057 10842440 0,9260 1,3623
91 Clocks and watches and parts thereof 36443314 41704041 17317 39697 0,1009 0,0599 216624 264615 0,4587 0,4814
Musical instruments; parts and accessories of such articles 92 6288161 7173464 17883 29060 0,6039 0,2551 63866 218260 0,7837 2,3084
Arms and ammunition; parts and accessories thereof 93 10245985 12579973 0 15 0,0000 0,0001 3123 4136 0,0235 0,0249
Furniture; bedding, mattresses, mattress
supports, cushions and similar stuffed furnishings; ... 94 171298628 232092917 3064579 11982026 3,7988 3,2503 2669436 3463297 1,2024 1,1321
Toys, games and sports requisites; parts and accessories thereof 95 110264374 121014397 317545 2886424 0,6115 1,5017 299141 558547 0,2093 0,3502
96 Miscellaneous manufactured articles 26227024 48112817 173730 515936 1,4066 0,6751 220223 311828 0,6479 0,4917
97 Works of art, collectors' pieces and antiques 18301619 19182201 793 4325 0,0092 0,0142 4530 1971 0,0191 0,0078
99 Commodities not elsewhere specified 258979334 277346024 425508 2888636 0,3489 0,6557 862785 475997 0,2571 0,1302 \
1. Changes in Vietnam’s comparative advantages
From 2010–2020, Vietnam achieved impressive trade growth when import-export turnover
continuously increased and a trade surplus has been maintained for the past 5 years. In 2020, in
the context of the pandemic, Vietnam is one of the few countries in Asia with positive trade growth
and a record trade surplus 2020, of nearly 20 billion USD. Foreign direct investment
(FDI) into Vietnam maintained a relatively stable growth rate from the period 2010–2019. In 2020,
the COVID-19 pandemic had certain impacts on FDI flows into Vietnam, but these impacts were not too large.
According to the results of RCA calculation for 99 product industries in the period 2010-2020,
there are from 28 to 34 industries with comparative advantage (accounting for nearly 29% to 35%
of the total), showing the number of industries with comparative advantage in Vietnam is quite
limited. Product industries with comparative advantage are mainly labor-intensive industries
(shoes, hats, knitting...) and agriculture, forestry, and fishing. Among them are notable sectors such
as 46 (Manufacture of straw, esparto coffee or other plaiting materials; basketware and 12|Page
wickerwork), 03 (Fish and crustaceans, molluscs and other aquatic invertebrates), 09 (Coffee, tea,
maté and spices) and 64 (Shoes, sandals and the like; sections of that article). In contrast, industries
that produce input materials such as plastics, rubber, mechanical machinery, metals, paper, or
quarterly, high-tech industries such as transportation equipment, optical equipment, musical
instruments, equipment for healthcare ... are industries in which Vietnam does not have a comparative advantage.
In addition, the electrical machinery, audio, television, and textile industries such as 50 (Silk) have
become advantageous industries with the RCA increasing gradually over time. This shows that
Vietnam is making positive changes in terms of comparative advantage and exports because it is
a skill-intensive, high-and medium-tech industry. At the same time, this industry also plays an
important role in Vietnam's export economy (nearly 35% of Vietnam's total export turnover in
recent years), proving its high competitiveness in the international market.
Regarding the pattern of altering RCA of favorable industries throughout this era, most of the
industries, even those with very high RCA such as footwear production, rice, dried and processed
fruits, tea and coffee products, spices, and natural resources such as tin and coal.., saw a decline
in RCA. The reason for this phenomenon is that most of Vietnam's comparative advantage
industries, such as agricultural products, raw materials, resource-intensive processed goods, and
labor, are losing their comparative advantage owing to competition from neighboring Asian
nations such as Cambodia, Laos, and Myanmar. Furthermore, wage increases in Vietnam have had
a significant influence on labor-intensive industry.
2. Changes in Malaysia’s comparative advantages
Malaysia is a country with a middle-income. Since the 1970s, the leather economy has evolved
from raw material production to a multi-sector economy. Malaysia aspires to be a high-income
country in the value-added production chain by 2020 and beyond. Malaysia preserved vegetable
oil products in solid or refined form from 1990 to 2015 since they are great products. Malaysia,
on the other hand, has recently focused on high-tech sectors such as office machinery, electronics,
musical instruments, and audio equipment. Malaysia expanded its export market by joining blocks
economic integration groups like as ASEAN (1967) and, subsequently, the WTO (1995).
Furthermore, Malaysia's trade policies, such as tax and expense subsidies, credit support through
guarantees and loans with low interest rates, and establishing centers for trade promotion
MATRADE (1985), positively contributed to the above results for Malaysia.
Since the industrialization and export-oriented phase, Malaysia has had a number of industries
with a high comparative advantage index, such as those in the group of manufactured goods
classified by materials such as 40 (Rubber and articles therein), 44 (Wood and articles of wood;
wood charcoal), the group of transport equipment and machinery, and the group of temporary
products such as 92 (Musical instruments; parts and accessories of such articles). Some industries
are kept in p 10 such as raw wood, vegetable oil, oilflora and fauna, and tin.
Thus, the industries with the highest RCA in Malaysia are mostly labor-intensive industries. Since
the implementation of export-oriented industrialization, two industries have maintained their
positions in the top 10, notably wood, plywood, and electrical machinery and appa, showing that
Malaysia is gradually turning its focus on the production of capital-intensive industries.
Malaysia's export volume of industries increased while RCA tended to decrease. The four most
notable industry groups in Malaysia are group 2 (paints, varnishes; antirust agents and wood
preservatives; raw natural resins); group 4 (Industrial oils and greases); group 6 (Normal metals
and their alloys); and group 7 (Machine and machine tools). Group 2 has a decrease in RCA and
export volume. Group 4 tends to increase RCA and export volume. So far, RCA has decreased, but
export output has increased significantly. Thus, besides the traditional industries maintained in the
top 10 such as raw wood and tin, Malaysia is targeting capital-intensive industries in Group 6;
Group 7; and expanding the branches of Group 4 such as 15 (animal or vegetable fats
and oils and their cleavage products; prepared edible fats; animal)
3. Correlation between Vietnam and Malaysia's comparative advantage
Through the analysis of the top 10 industries with the highest RCA and the top 10 industries with
RCA > 1, we find that Vietnam has a similar structure to Malaysia in the diversity of products. As
a latecomer, Vietnam has a learning advantage over previous industrialization countries. Although
based on labor-intensive LTSS industries, Vietnam is trying to transform capital-intensive
industries into have a certain position in the top industry with RCA > 1. Vietnam has also been
executing an industrialisation plan in line with the successful countries of Malaysia and Thailand, however the pace is slower. IV. Conclusion
Due to FDI in electronic and telecommunications equipment, the percentage of these items in
Vietnamese exports is gradually rising, and computer equipment has become a newly disclosed
competitive advantage. This edge will grow when recent significant projects in the electronics
sector come online. Vietnam will so steadily strengthen its specialization in order to maximize its
long-term growth and development potential.
A few megatrends will shape Vietnam's future. The country's population is aging, and international
trade is shrinking. Environmental degradation, climate change, and the expansion of automation
are all becoming increasingly common. The present COVID-19 issue has accelerated these
developments. But, for the time being, Vietnam is expanding at its own speed and in its own way. 14|Page
Malaysia's near-term economic prospects will be more reliant on government efforts to support
private sector activity as the COVID-19 shock decreases export-led growth and a reduced fiscal
space limits public investment-led expansion. Longer term, as Malaysia converges with high-
income countries, incremental growth will rely less on factor accumulation and more on boosting
productivity to sustain greater potential growth. While impressive, Malaysia's productivity
increase over the last decade has been lower than that of numerous global and regional comparators.
Ongoing reform initiatives to address significant structural impediments will be critical to
supporting and sustaining Malaysia's development path. V. References
VV Hoang, KT Tran - AGRIS on-line Papers in Economics …, 2019
A Jayadi, HA Aziz - JDE (Journal of Developing Economies …, 2017
HV Khai, M Yabe - A Comprehensive Survey of International …, 2013
VT Thanh, NA Duong - Asian Economic Policy Review, 2011
ZN Aini, JM Roda, PA Fauzi - Paper presented at National …, 2010
MM Ismail, Z Yusop - Journal of Food Products Marketing, 2014 - Taylor & Francis
S Abbas, A Waheed - Competitiveness Review: An International …, 2017
Overview: Vietnam. World Bank, 2022
Overview: Malaysia. World Bank, 2022
Tạp chí Kinh tế và Dự báo - Bộ Kế hoạch và Đầu tư, Tài Khoản Vãng Lai Của Việt Nam: Dự
Báo Thâm hụt năm 2021. Tạp chí Kinh tế và Dÿ báo - Bộ Kế hoạch và Đầu tư. Available at:
https://kinhtevadubao.vn/tai-khoan-vang-lai-cua-viet-nam-du-bao-tham-hut-nam-2021-206 39.html
Lợi Thế so Sánh và Sþ Tham Gia vào chuỗi Giá Trị Toàn Cầu Của Việt Nam*. Available at:
http://vjst.vn/vn/tin-tuc/5188/--loi-the-so-sanh-va-su-tham-gia-vao-chuoi-gia-tri-toan-cau-c ua-viet-nam*.aspx. Word Count: 2377 words Individual Contribution: FULL NAME CONTRIBUTION Lê Thị An 100% Vũ Sao Mai 100% Vũ Công Nam Anh 100% Chu Minh Quân 100% 16|Page