C.Marx's commodity theory and the problem of improving the competitiveness of Vietnamese goods

HANOI NATIONAL UNIVERSITY UNIVERSITY OF ECONOMICS

-------------------------------

DUONG DUC DAI

C. MARX'S THEORY OF COMMODITIES

AND THE PROBLEM OF IMPROVING THE COMPETITIVENESS OF VIETNAMESE GOODS

MASTER'S THESIS IN POLITICAL ECONOMY

Hanoi - 2010

HANOI NATIONAL UNIVERSITY UNIVERSITY OF ECONOMICS

-------------------------------

DUONG DUC DAI

C. MARX'S THEORY OF COMMODITIES

AND THE PROBLEM OF IMPROVING THE COMPETITIVENESS OF VIETNAMESE GOODS

Major: Political Economy Code: 60 31 01

MASTER'S THESIS IN POLITICAL ECONOMY

SCIENTIFIC INSTRUCTOR: PROFESSOR DO THE TUNG

Hanoi – 2010

INDEX

LIST OF ABBREVIATIONS

i
LIST OF TABLES	ii
LIST OF CHARTS	iii
INTRODUCTION	1
CHAPTER 1: THEORY OF GOODS AND COMPETITIVENESS
OF GOODS	7
1.1 Goods and competitiveness of goods	7
1.1.1 Goods and two attributes of goods	7
1.1.2 Competitiveness of goods	13
1.2 New manifestations of use value and value in process
improve the competitiveness of goods in the modern market	22
1.2.1 New manifestations of use value	22
1.2.2 New manifestations of commodity value in the modern economy
grand	31
1.3 Experience in improving the competitiveness of goods	34

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1.3.1 Experience in diversifying the corporation's value of use

NOKIA and MICROSOFT 34

1.3.2 Experience in providing specific usage value of GOOGLE 36 corporation

CHAPTER 2: RECOGNIZING AND APPLYING THE THEORY OF TWO PRODUCT ATTRIBUTES TO IMPROVE COMPETITIVENESS

PICTURES OF GOODS IN VIETNAM 39

2.1 The transformation of perception about commodity production, two attributes of

goods and competition of goods in Vietnam 39

2.1.1 From only recognizing a part of the product as goods to

policy of synchronous development of all types of markets 39

2.1.2 From emphasizing the value of use and underestimating the value to valuing the value

two attributes of goods in Vietnam 44

2.1.3 From replacing competition with emulation to acknowledging and

promote healthy competition 49

2.1.4 Limitations of applying commodity theory to upgrading

improve the competitiveness of Vietnamese goods 51

2.2 The current situation of the competitiveness of Vietnamese goods - considered according to two attributes of goods 54

2.2.1 Market share of Vietnamese goods 55

2.2.2 Competition in value and price of Vietnamese goods 62

2.2.3 Competition in the use value of Vietnamese goods 67

CHAPTER 3: ORIENTATION AND SOLUTIONS TO IMPROVE THE COMPETITIVENESS OF VIETNAMESE GOODS 75

3.1 Orientation to improve the competitiveness of Vietnamese goods 75

3.1.1 Enhance and diversify the use value of goods 75

3.1.2 Lowering the value of goods 78

3.1.3 Enhance the effectiveness of state regulation to promote competition

healthy goods picture 80

3.2 Solutions to improve the competitiveness of Vietnamese goods 81

3.2.1 Improving the skills of Vietnamese workers 81

3.2.2 Increasing endogenous capacity in Vietnam's science and technology 84

3.2.3 Improving the way of organizing and managing economic activities 88

3.2.4 Innovation and improvement of productivity of means of production 92

3.2.5 Rational exploitation of natural resources 94

CONCLUSION 97

REFERENCES 101

APPENDIX

LIST OF ABBREVIATIONS

SYMBOL

CONTENT
ENGLISH	VIETNAMESE
ASEAN	Association of Southeast Asian Nations	Association of Regional States Southeast Asia
DRC	Domestic Resource Cost coefficient	Domestic resource cost factor
EU		European Union
GAP	Good Agriculture Practices	Process of “Agricultural Practices” good karma"
ISO Process		Standard production process international
RCA	Revealed Comparative Advantage	Competitive coefficient
Ho Chi Minh City		Ho Chi Minh City
VITAS	Vietnam Textile and Apparel Association	Vietnam Textile and Apparel Association
WTO	World Trade Organization	World Trade Organization

LIST OF TABLES

Number

board

Table name	Page
Table 2.1	Rice export market share by output 1998 – 2008	57
Table 2.2	Rice export market share by value 1996 – 2006	57
Table 2.3	Changes in market shares of exporting countries textiles into the US market.	60
Table 2.4	Relative market share of Vietnamese textiles compared to Indian textiles in the US market	61
Table 2.5	Rice prices (FOB) in some ASEAN countries	62
Table 2.6	Rice production costs in the Mekong Delta and Thailand.	63
Table 2.7	Productivity of some textile equipment used in Vietnam	64

LIST OF CHARTS

Chart number

Chart Name	Page
Chart 1.1	Commodity competitiveness model	21
Chart 1.2	US economic structure 1998 - 2009	27
Chart 2.1	Vietnam's rice export turnover goes markets in 2007-2008	59

INTRODUCTION

1. Urgency of the topic

Competition in a market economy can be divided into levels: national, industry, enterprise, and commodity. In which, national competition is based on industry and enterprise competition, and enterprise competition is based on commodity competition. Thus, commodity competitiveness represents the competitiveness of enterprises, and forms the basis for the competitiveness of industries and nations [66].

The competitiveness of goods is considered based on many criteria, but mainly on the ability to meet the needs and tastes of consumers (or the use value of goods) and on the price (mainly based on the value) of goods that are suitable to the buyer's ability to pay. In the pre-Doi Moi period in Vietnam, the rigid application of the centralized planning mechanism replaced the competition of goods with the emulation movement to complete the legal targets, focusing on physical objects, valuing the quantity of use value, and disregarding the value of goods. Therefore, the issue of improving the competitiveness of goods has not been an urgent issue. Since Doi Moi, although there have been many steps forward, the competitiveness of Vietnamese goods is still limited, and even some highly protected Vietnamese goods still find it difficult to gain an advantage in competition. For example, after more than 10 years of protecting the automobile industry, Vietnamese enterprises have not been able to produce cars that compete in the world market [79]. Therefore, improving the competitiveness of goods is an urgent requirement of all Vietnamese enterprises.

Meanwhile, as one of the reliable theories to help improve the competitiveness of goods, C. Marx's Commodity Theory has not been effectively applied, although the perception and application of C. Marx's doctrine have made much progress. Therefore, the issue of "C. Marx's Commodity Theory and the Problem of

C.Marx's commodity theory and the problem of improving the competitiveness of Vietnamese goods - 1

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