Area, Output, Revenue of Agricultural Export Products

i=1

In which: TR: Revenue

Pi: Price of one unit of product i Qi: Quantity of product i consumed N: Number of product groups consumed

1.3.1.2. Percentage of export volume of agricultural products

(2)

Determining the volume of exported agricultural products (mainly specific items such as rice, coffee, rubber, pepper, cashew nuts, etc.) is aimed at assessing the volume of agricultural products produced and exported to the world market (%). This is one of the important factors from which to build solutions to promote agricultural product exports in the future. The volume of exported agricultural products can be determined using the following formula:

Proportion of NSXK goods volume (%) = Error! (3)

1.3.1.3. Ratio of agricultural export value

Determining the ratio of agricultural export turnover value to the total value of the agricultural sector is aimed at clarifying the contribution of agricultural exports to the entire agricultural sector, specifically by the following formula:

Value ratio of turnover; NSXK (%) = Error! (4)

1.3.1.4. Ratio of agricultural export turnover to the whole country

Determining the ratio of agricultural product export turnover to total export turnover of countries, with the aim of clarifying the role of agricultural products in trade of goods and economic growth, specifically determined by the following formula:

Ratio of export turnover value; compared to the whole country (%) = Error! (5)

1.3.1.5. Open Comparative Advantage Index (RCA)

The method uses the RCA public comparison coefficient to evaluate the production-export performance of a certain key agricultural product (such as exported rice) of Vietnam with the same type of exported agricultural products of other competing countries in the world market. The use of the RCA coefficient is also meaningful in determining the key agricultural export products that currently have export competitive advantages, the level of advantage and disadvantage as well as the national efficiency of this product industry compared to other export manufacturing industries.

The public competitive advantage index, also known as the apparent comparative advantage, is the ratio between the market share of a country's agricultural product in the world's exports of that product and the country's market share in total world exports.

Calculate the RCA index according to the following formula [30]:

Me : Tq

Te Tg

RCA  (6)

In there:

Ta: Export turnover of a certain agricultural product a in a certain unit of time of a country.

Te: The world's export turnover of a certain agricultural product a during the same comparison period.

Tq: Total value of goods exports of the country in

same time comparison.

Tg: Total export value of the whole world in the same comparison period.

If RCA > 1, the country has a comparative advantage in exporting that agricultural product. On the contrary, if RCA < 1, it shows that the agricultural product does not have a comparative advantage in production and export. The level of public comparative advantage of each country in producing and exporting a certain agricultural product depends on whether the RCA index is higher or lower than that of competing countries exporting the same type of agricultural product.

1.3.1.6. Production costs of agricultural products for export

The domestic resource cost (DRC) of a product is a commonly used index to measure the competitiveness of a product in the absence of price distortions due to policy interventions. The meaning of DRC reflects the real cost that society has to pay in producing a certain good. DRC represents the total cost of domestic resources used corresponding to 1 dollar earned from the product sold. Therefore, DRC is less than 1, meaning that it takes less than 1 domestic resource to create 1 dong of added value at international prices, then the product has a competitive advantage. DRC is greater than 1, meaning that it takes more than 1 resource to create 1 dong of added value at international prices, and thus the product has no competitive advantage. DRC is calculated according to the following formula [30]:

DRC i =

n

aijP

*

j

j  k  1

k

(7)

i

p

ij

j

P b a b

j  1

In there:

aij: Input cost coefficient j for product ij =1 … .k: Tradeable input

j

j = k+1, … , n: Domestic resources and non-tradable intermediate inputs P * : Economic price of domestic resources and intermediate inputs

invulnerable

i

P b : Border price of tradable product calculated at economic exchange rate

j

P b : Border price of tradable inputs calculated at the exchange rate

economy.

1.3.1.7. Market share of agricultural export products

Each type of agricultural product usually has its own market area with a certain number of customers. When the goods ensure factors such as good quality, lower prices, good food hygiene and safety, business opportunities appear, effective sales promotion, strong product brands, expanded distribution channels, etc., it will increase the competitiveness of the product and expand the consumption market. The market share of exported agricultural products on the market is often calculated according to the following formula:

Ms =

In there :

Max 100 % M

(8)

Ms: Market share of goods

Ma: Quantity of goods a consumed in the market

M: Total quantity of goods of the same type consumed in the market

The magnitude of this indicator reflects the competitiveness of the product and the country's position in the world market. The larger the market share of a product, the more competitive it is and the greater its competitive potential. Conversely, a product with a small or declining market share has weak competitiveness and its ability to influence the market is very poor.

1.3.1.8. Design, model and brand of exported agricultural products The design and model of agricultural products play a very important role in enhancing the competitiveness of agricultural products in the market. The design and model of agricultural products must be suitable for each market, that is, suitable for the psychology, consumer habits, religion of each region, each country, territory, each ethnic group, each different customer segment.

In addition, the design and style of agricultural products must also suit the preferences of different age groups of customers.

According to the American Marketing Association, a brand is: a name, term, sign, symbol, design or a combination of these elements intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors [8] .

According to Dr. Nguyen Quoc Thinh, a brand is first of all a term used a lot in marketing; it is the image of a production and business establishment (generally called an enterprise) or the image of a type or group of goods and services in the eyes of customers; it is a set of signs to distinguish the goods and services of this enterprise from the same type of goods and services of other enterprises or to distinguish this enterprise from other enterprises.

So, the brand of agricultural products is a name, word, symbol, icon or design drawing... or a combination of the above elements to identify and distinguish agricultural products of a seller or group of sellers from agricultural products of competitors.

A product brand is considered a valuable intangible asset of a business or a country in an open and integrated market economy. A brand represents prestige, product characteristics, symbols or images.

image of the business. Therefore, when products have a brand and are trusted by consumers, businesses selling those products will have the opportunity to expand market share and have a better advantage in attracting investment capital from outside to expand production scale.

For example, in 1980, Schweppes bought Crusch from P&G for 220 million USD, of which only 20 million USD was spent on facilities, the remaining 200 million USD was spent on brand value, accounting for 91%. Or, when Nestles bought Rowntree, it accepted up to 83% of the cost for the brand. In Vietnam today, there are many famous brands that have been affirmed such as Dong Tam, Kinh Do, Toan My, Vinacafe, Saigon Beer, Vinamik, Hoang Anh Gia Lai, or some agricultural products such as Hai Hau rice, Hoang Gia pomelo, Lo Ren star apple, Cai Mon Chin Hoa durian, Luc Ngan lychee, Sohafarm rice, Cho Lach longan, Lai Thieu mangosteen, Hoa Loc-Cai Be mango...

Thus, product brands in general and agricultural products in particular are assets with potential for exploitation in the future. In a market economy where fierce competition always takes place, to stand firm in the market, businesses must create a strong brand for their agricultural products, a brand with a reputation in the hearts of customers. That is one of the important criteria to evaluate the development potential and survival of exported agricultural products in the market.

1.3.1.9. Forecasting agricultural export markets

Forecasting the export agricultural market is one of the essential tools in economic management, aiming to develop the agricultural market in a sustainable direction, avoiding major disturbances that can upset the original goals. Forecasting the agricultural market will help management agencies proactively make early decisions and solutions.

suitable to promote favorable situations, while preventing unfavorable situations as forecasted. Agricultural export activities and the development of annual agricultural export plans depend largely on the quality of agricultural market forecasting. In fact, the first step in trade development is market information, especially forecasting. To operate the economy in a market mechanism, for state management levels, forecasting information helps to form an effective investment strategy for scientific research, infrastructure construction, or production organization, helping to form appropriate policies to protect and support domestic production. For producers and traders of agricultural products for export, forecasting the agricultural export market helps to make reasonable decisions on investment, production organization, business, and choosing appropriate agricultural export markets. According to agricultural export enterprises, up to now, enterprises have lacked forecasting information on the agricultural market. The information sources that businesses use often have to be purchased or sourced from abroad, through associations, so the quality is not guaranteed.

As the country's economy has grown, the economic level has been raised and expanded in global relations, the work of forecasting agricultural markets requires improvement in quality, consolidation of the organization of the forecasting system; construction of forecasting models and methodologies... to help the work of managing economic development in general and developing the export agricultural market in a favorable and proactive manner. It is time to consider agricultural market forecasting as an indispensable tool in managing and developing Vietnam's agricultural exports.

1.3.2. Factors affecting agricultural product exports