Nâng cao năng lực cạnh tranh ngành hàng chè xuất khẩu của việt nam trong điều kiện hội nhập tt tiếng anh

VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES

NGUYEN LUONG LONG

ENHANCING VIETNAM TEA EXPORT’S
COMPETITIVENESS CAPACITY
IN THE INTEGRATED PERIOD

Major: International Economics
Major code: 9.31.01.06

SUMMARY OF DOCTORAL THESIS

HANOI - 2020


The thesis is completed at
GRADUATE ACADEMY OF SOCIAL SCIENCES

SUPERVISORS:
1. ASSOC. PROF. PHD DO DUC DINH
2. PHD. TRAN DUC VUI

Reviewer 1: ASSOC. PROF. PHD. NGUYEN THUONG LANG
Reviewer 2: ASSOC. PROF. PHD. DINH VAN THANH
Reviewer 3: ASSOC. PROF. PHD. NGUYEN VAN DAN

The thesis shall be defended in front of the Thesis Committee at
Academy Level at Graduate Academy of Social Sciences
At...... hour....... date...... month...... year 2020

The thesis can be found at
- The National Library
- The Library of Graduate Academy of Social Sciences


INTRODUCTION
The necessity of the thesis
Vietnam is considered the cradle of the world tea tree. We have been producing tea
since time long long time ago, but our tea still doesn't have many famous brands.
Each year Vietnam exports around 130,000 tons of tea, ranking fifth in the world for
tea production and export.
Tea is a significant contributor to the total agricultural, forestry and fishery exports of
Vietnam's agricultural sector, contributing significantly to the trade balance and curbing
trade deficit of the country's economy. Vietnam's tea products are now exported to 100
countries around the world. Up to now, Vietnam has belonged to the five largest tea
exporting countries, after Kenya, China, Sri Lanka and India. According to the statistics
of the Vietnam Tea Association, in 2017, Vietnam's tea exports reached 139.8 thousand
tons, turnover reached 228 million USD, increase 6.8% in volume and 4.8% in value
compared to the same period of 2016. In 2018, the country's tea export reached 127.34
tons, valued at US $ 217.83 million, down 8, 9% in volume and 4.4% in value over the
same period. Although the average price in 2018 reached US $ 1,710.7 / ton, up 4.9%
compared to 2017, Vietnam is still one of the countries with low tea export prices in the
world.
The process of international economic integration has and will bring many
opportunities, and along with it are enormous challenges for Vietnam's exports in
general and for tea exports in particular when more and more competitors become
stronger in brand and quality has, they participate in the global market. In particular,
in the context that Vietnam has participated in the CPTPP Agreement. As an
agricultural country, the topic of agricultural products always attracts the attention of

domestic and foreign scholars. The aspects related to the development of the tea
industry are researched to find optimal solutions to improve production capacity and
product value.
In general, Vietnamese tea brand is still quite lackluster compared to other tea
brands in the world. The export market share of tea products is still small, unstable,
lacking of big trading partners and mainly exported through intermediaries.
Although tea exports are among the world's leading commodities, they are still
dependent on the fluctuations of prices in the world market, and cannot determine
the export prices of the world markets.
Therefore, the selection of the topic: "Enhancing Vietnam's export tea
competitiveness capacity in the integrated period" makes a doctoral thesis which is
not only theoretical but also helps solve problems. Practical urgent issues are posed
for the enhancement of export capacity and development of export tea products of
Vietnam.
Research purpose
The study aims to assess the current situation of export competitiveness of tea
industry through criteria to assess competitiveness, find and build models of factors
affecting competitiveness of the tea industry. It provides solutions to enhance the

1


competitiveness of Vietnam's export tea industry in the context of extensive
international economic integration.
Research task:
- Overview of theoretical basis related to competitiveness, tea industry
competitiveness and enhancing tea industry competitiveness
- Study the current situation of tea export, the competitiveness of the export tea
industry and the cause of the situation. Develop a model to assess factors affecting
competitiveness of the tea industry

- Proposing solutions to improve the competitiveness of Vietnam's export tea
industry in the context of extensive international economic integration.
Research subject
The research subject of the thesis is the competitiveness and factors affecting the
competitiveness of the tea industry in Vietnam in the context of current international
economic integration.
Research scope
The study was conducted on tea export enterprises nationwide.
Time for research: Secondary data used in the thesis was collected in the period
2010-2018. Primary survey data was collected in 2018
Data collection methods For secondary data
Secondary data was collected from state management agencies on tea industry such
as Ministry of Industry and Trade, General Statistics Office, General Department of
Customs, Tea Industry Association ..., foreign organizations such as: FAO, IMF ...
For primary data
Questionnaire of factors affecting competitiveness of tea export industry will be sent
to tea exporting enterprises in the North, Central and South of Vietnam through the
address listed in the Statistical Yearbook. 2018 - General Statistics Office. Method
of sending questionnaires by E-Mail (email) or in person.
Research methodology
Methods of descriptive statistical analysis:
The research uses econometric statistics method, comparative synthesis method; in
addition, the method of data envelopment analysis (DEA) is used to estimate the
competitive efficiency of the industry to analyzing the effectiveness of Vietnam's
export tea industry in the context of integration.
The econometric model for analyzing the survey results collected includes:
- Analysis of reliability scale
The reliability of the scale is assessed by the method of intrinsic consistency through
Cronbach's Alpha coefficient. Use the Cronbach’s Alpha reliability coefficient
method before analyzing the EFA factor to eliminate inappropriate variables because

these garbage variables can create fake factors (Nguyen Dinh Tho & Nguyen Thi
Mai Trang, 2009).
- Factor analysis
Before testing scientific theory, it is necessary to assess the reliability and value of
the scale. Cronbach Alpha method used to assess the reliability of the scale. The
2


Exploratory Factor Analysis (EFA) method helps us to evaluate two important value
types of the scale: convergent and discriminant values.
- Multivariate regression analysis by the method of linear structure (Structural
Equation Modeling, SEM)
PLS-SEM; also known as the PLS path model used in case studies for the main
purpose of applying structural modeling is to predict and explain target structures
(Rigdon, 2012).
In case of research situations where finding theoretical basis is difficult, with the
intention of researching this issue in the past, researchers should consider using
PLS-SEM as an alternative method for CB- SEM. This is especially true if the main
goal of applying structural modeling is to predict and explain target structures
(Rigdon, 2012).
New scientific contributions of the thesis
Theoretical contribution of the thesis
Through systematizing the basic theories of competition and competitiveness of
goods, especially, for the tea industry in terms of international economic integration.
The thesis will provide theoretical framework and research model, hypotheses about
the set of criteria to improve the competitiveness of the tea industry and the factors
affecting the competitiveness of the tea industry.
Define a set of basic criteria to improve the competitiveness of exported tea products
including: Market share of tea products, Quality of raw materials, Technology
capacity of tea enterprises, Access to capital of enterprises in the tea industry,

Linkage capacity, and Product brands.
Contribute to the development of a competitive model based on diamond model of
M.Porter (1958) in specific conditions of Vietnam's export tea industry. Specifically,
the author proposes a research framework comprising 6 factors affecting tea
industry's competitiveness, including: Factors of production conditions, Demand for
products, Management, Roles of the government, Indigenous Culture. Thereby it
will be a valuable study for the reference of scholars in research and teaching.
Practical contribution of the thesis
The results of the competitiveness assessment criteria have pointed out the needs,
favorable prerequisites and difficulties that hinder the competition of Vietnamese tea
products. The dissertation also clarified the scientific foundation for forming and
improving the competitiveness of Vietnamese exported tea products. Based on the
results of testing the research hypothesis, the author proposes factors affecting the
competitiveness of Vietnam's export tea industry including: (1) production factors
that have a positive relationship to capacity of export tea industry competitiveness;
(2) demand for products have a positive impact on the competitiveness of the tea
industry; (3) management factors have a positive impact on the competitiveness of
the export tea industry; (4) government policies affecting competitiveness of the
export tea industry; (5) marketing activities have a strong impact on the
competitiveness of the tea industry; (6) indigenous culture has no impact on
improving the competitiveness of the tea industry.
3


Research framework of the thesis
-

- Study overview
- Theories about
competitiveness and

enhancing

competitiveness

-

- Criteria for
evaluating
competitiveness of
the tea industry
- Factors affecting the
competitiveness of
the tea industry

Status of
competitiveness
of Vietnam's tea
industry

-

- Main directions and
solutions to
improve the
competitiveness
of the tea

industry

Lessons learned about

improving the
competitiveness of the
tea industry from other
countries

Structure of the thesis
In addition to the Introduction, Conclusion and Appendix, the thesis consists of 4
chapters:
Chapter I: Literature reviews of Vietnam's export tea competitiveness in the
integrated period
Chapter II: Theory of tea export competitiveness in the integrated period
Chapter III: Current situation of Vietnam's export tea industry competitiveness in
the integrated period
Chapter IV: Solutions to enhancing the competitiveness of Vietnam's export tea
industry in the integrated period
CHAPTER 1 LITERATURE REVIEWS OF VIETNAM’S EXPORT TEA
COMPETITIVENESS
IN THE INTEGRATED PERIOD
1.1. Overview of reseach in tea export industry competitiveness
Many Vietnamese and foreign researchers have many research works on Vietnamese
tea industry and also world tea industry. These studies have pointed out many
aspects related to the competitiveness of the tea industry such as planning,
production, processing, brand development, value chains ... Or about improving the
competitiveness of the Vietnamese agricultural sector both before and after
Vietnam's accession to the WTO.
Typical as:
- Wenner, Robert (2011), in the study "The long history of Vietnamese tea: Culture,
production and development prospects." Independent Study Project (ISP)
Collection. Paper 1159.
- Ha Tuan Minh (2014), "Establishing a Transformative Learning Framework for

Promoting Organic Farming in Northern Vietnam: A Case Study on Organic Tea
Production in Thai Nguyen Province." Asian Journal of Business and Management
4


- Nguyen Viet Khoi, Chu Huong Lan, To Linh Huong (2015), "Vietnam tea
industry: an analysis from value chain approach"
- ICARD-MISPA Research Fund (2005) "Vietnam's agricultural competitiveness in
AFTA integration" TOR MISPA A / 2003/06.
- Le Thi Binh (2010), "Competitiveness of some major agricultural export products
of Vietnam in the context of international economic integration". University of
Economics and Business - Vietnam National University, Hanoi
- Nguyen Thu Ha (2011), "Building and developing Vietnamese tea brand in the
context of international economic integration", University of Economics - Vietnam
National University, Hanoi
The published researches on the topic of competitiveness in general and in the
export tea industry in particular are very rich and are a useful source of references
and inheritance. However, each project has its own goals, approaches, and scope of
research, so it may not always satisfy the diverse needs of readers. At the same time,
with time, new issues always arise and require new research and research, especially
solutions to develop and improve competitiveness.
1.2 Some remarks about the research gap and research directions of the thesis
t this study, new issues of competitiveness enhancement need to be studied, such as:
- Criteria for evaluating the competitiveness of Vietnam's export tea industry
- Factors affecting the competitiveness of Vietnam's export tea industry
- It is necessary to review all policies, the legal system, research and analyze new
issues in the context of the deepening international economic integration with new
FTAs such as CPTPP, EVFTA ... opening up prospects. enormous for trade and
investment, popularizing standards for intellectual property rights (IPR) protection,
environment and labor standards ...

All the above issues show that it is necessary to make theoretical and practical sense
to continue the topic of improving the competitiveness of Vietnam's export tea
products in a new context.
CHAPTER 2 THEORY ON COMPETITIVE CAPABILIITY IN THE
INTEGRATED PERIOD
2.1. Theory on competitive capability
2.1.1. Concept and category of competitive capability
According to the economic dictionary, competition is understood as the process of
competing or competing between at least two competitors in order to gain resources
or advantages of products or customers on their side, to gain maximum benefits.
American economist M.Porter thinks that competition is gaining market share. The
essence of competition is to seek profit, which is higher than the average profit that
the business has.
Competitiveness is divided into 4 levels including: National Competitiveness,
Industry
Competitiveness,
Enterprise
Competitiveness,
and
Product
Competitiveness

5


Figure
2.1.
System of factors
determining
competitive

advantage

2.1.2 Sector competitiveness
So far, there have been many efforts to explain the success in international competition
of industries under the view of international trade. Although the classical theory of
international trade does not mention the concept of competition and competitiveness, but
when the product is exported to the world market, the increase in the market share of
products is a proof that the product is more competitive.
2.1.3 Content of competitiveness research under the "Diamond" model of M.
Porter
In the Competitive Advantage of Nations, Michael Porter, a professor at Harvard
University (USA) came up with a model that can be used to analyze why some countries
are capable of competing. The competition is better than other countries and why some
products of some countries are more likely to compete successfully than products in
others. It includes the following: Conditions of inputs, Demand conditions, Supporting
and related industries, Business strategy, organizational structure and competitive
environment, Role of opportunity, and the role of the Government
2.1.4. Views on improving the competitiveness of Vietnam's export tea
industry
Based on the analysis of arguments on competition, competitiveness, and the
context of international economic integration, the author offers a viewpoint to
improve the competitiveness of Vietnam's export tea industry as " a group of
businesses that produce tea-related products that compete directly with each other to
achieve the goal of increasing market share, increasing sales through the use of lowcost strategies or creating products with outstanding features compared to other
companies in the same industry or similar industries on the market ”.
2.2 The criteria for evaluating the competitiveness of the tea industry in the
integrated period
- Market share of tea products
- Quality of raw material sources
- Technological capacity of tea business

6


- Access to capital of tea enterprises
- Business linkage capacity
- Product brands
2.3. Factors affecting the competitiveness of the tea industry
According to Michael Porter's diamond model, in the previous section, the national
competitive advantage is formed from a group of factors such as: conditions of
production factors, conditions of demand, supporting industries. In this section, the
tea industry, with Vietnamese characteristics, will affect the following factors:
- Conditions of production factors
- The conditions of the demand
- Conditions of management
- The role of government
- Marketing activities
- The indigenous culture
2.4. Research diagram and establishment of factors affecting the
competitiveness of the tea industry
2.4.1 Research diagram
Production
conditions
Management conditions

Marketing Activities
Role of government

Competitiveness
Capacity

Indigenous culture

Demand conditions

Figure 2.2 Proposed research scheme
Research hypotheses
From research scheme 2.2, the author proposes 6 research hypotheses as follows:
H1: The condition of production factors has a positive impact on the
competitiveness of the tea industry.
H2: Management conditions have a positive impact on the competitiveness of the
tea industry.
H3: Marketing activities have a positive impact on the competitiveness of the tea
industry.

7


H4: The role of government has a positive impact on the competitiveness of the
tea industry.
H5: Indigenous culture has a positive impact on the competitiveness of the tea
industry.
H6: Demand conditions for products have a positive impact on the
competitiveness of the tea industry.
2.4.2 Research design

Figure 2.3 Process of conducting research
2.4.3 The scale
Table 2.4 Encryption and scale origin
Factors

Production
Conditions

Management
Conditions

Indicator
Human Resources
Infrastructure and
technology
Resources
Capital
Business structure
Corporate culture
Business strategy

Encode
NTSX1
NTSX2
NTSX3
NTSX4
QT1
QT2
QT3

Market research
Branding
Marketing
Distribution channel
Activities

Research products
Price strategy
Stable macro
Role
of
environment
Goverment
Building a clear and

HDM1
HDM2
HDM3
HDM4
HDM5
VTCP1
VTCP2
8

Origin of the scale
Momaya (2004),
Research by Onar &
Polat (2010), Phung Thi
Trung (2016) and To
Linh Huong (2018)
Nguyen Thanh Long,
2016; Phung Thi Trung
2016; To Linh Huong,
2018
Thompson, Strickland &
Gamble 2007; Onar &

Polat 2010; Sauka, 2014
...
Sauka (2014), Nguyen
Thanh Long (2016), To
Linh Huong (2018) and


Indigenous
culture

Demand
Conditions

transparent legal
corridor
Export support policy
for tea industry
Farming practices
History, literature on
tea
Tea drinking culture
Market
New product
Price
Market share

development author
VTCP3
VHBD1
VHBD2

VHBD3
CSP1
CSP2
CSP3
CSP4

The author develops on
the basis of qualitative
research
Thompson, Strickland &
Gamble (2007) and To
Linh Huong (2018)
Momaya (2004),
Research by Onar &
Polat (2010), Phung Thi
Trung (2016) and To
Linh Huong (2018)

2.4.4 Data collection methods
The author uses a combination of 2 sources: primary data and secondary data
Secondary data: the author will search and select the results of published works and
scientific papers related to the country and abroad in order to find a model of factors
affecting industry competitiveness. tea. The author uses search aids such as
Proquest, ScienceDirect, Emerald, Scholar.google, ...
Primary data: collected by survey method from the survey by questionnaire
dedicated to the topic.
The survey was conducted directly with paper questionnaires, soft copies and via
face-to-face meetings or emailing to tea producing and exporting enterprises.
Number of questionnaires sent: about 450. It is expected that the number of replies
will result in 400 replies.

2.4.5 Data analysis method
Secondary data is collected by the author from research works, documents, books,
and specialized newspapers. The author uses statistical methods to synthesize the
data and then proceeds to use analytical techniques to process the data.
Primary data collected through the questionnaire was analyzed by statistical data
analysis tool SPSS, SmartPLS. Specifically, the main techniques used include:
Conventional analytical techniques: such as descriptive statistics to give an overall
picture of demographics as well as estimates of the (average) mean of the criteria.
Multi-factor analysis technique: to identify the components of factors affecting the
competitiveness of export tea industry. Analysis techniques of semi-linear linear
structure model: to determine the complex interaction between elements and
components of a model.
According to Henseler & Chin (2010), the research model PLS-SEM smallest
variance value was assessed through two steps: evaluation of measurement model
and structural model. First, the measurement model is assessed through the
9


reliability, convergence and discriminatory evaluation of measurement concepts in
the model.
2.5. Experiences in improving tea industry's competitiveness in terms of
integration and lessons for Vietnam's export tea industry
From the experiences of China, Sri Lanka and Kenya, lessons learned for Vietnam
include:
- Having a reasonable tea industry development policy, organizing the tea industry
very closely and consistently under the direction of the government.
- Develop businesses; build a team of qualified entrepreneurs. All parties involved in
the tea value chain must benefit
- Actively apply science and technology to create new tea varieties with higher yield
and quality. At the same time, changing farming techniques to meet the strict

requirements of food safety standards of developed countries.
- Invest in building and restoring symbols of long-standing tea drinking culture.
Gradually assert as the cradle of tea drinking culture of mankind. To strongly
develop high-class tea brands for domestic consumption as well as export to
fastidious markets.
CHAPTER 3 CURRENT SITUATION OF COMPETITIVE CAPABILITY
IN VIETNAM'S EXPORT TEA INDUSTRY IN THE INTEGRATED
PERIOD
3.1 Characteristics of the development of Vietnam's tea industry
3.1.1 Tea area harvested
From 1990 to present, Vietnam tea area has increased. The average period of
2010-2017 increased by 1.26% / year, from 113,200 ha in 2008 to 123,188 ha in
2017. Through Table 3.1, tea area has increased in this period but in general, the
growth rate is slow compared to with the wishes of many localities growing tea.
Table 3.1 Area and quantity of dry tea nationwide
Area
Quantity
Year
Increase
Quantity
Increase
Area (ha)
(%)
(tons)
(%)
113.200
1,61
198.466
6,87
2010

2011

114.399

1,05

206.600

4,09

2012

114.433

0,02

211.500

2,37

2013

114.827

0,34

217.700

2,93

2014

115.436

0,53

228.360

4,89

2015

117.822

2,06

236.000

3,34

2016

118.824

0,85

240.000

1,69

2017

123.188

3,67

260.000

8,33

10


(Source: FAO data)
3.1.2 Tea production quantity
In the period of 2010-2014, the average output increased by 4.23% / year, from
198,466 tons in 2010 to 228,360 tons in 2014. In the period of 2015-2017, the output
continued to increase an average of 4.45% / year, by 236,000 tons in 2015, and
260,000 tons by 2017 (see table 3.1). The relatively high production of the whole tea
industry has made Vietnam ranked fifth among the largest tea producing countries in
the world, accounting for over 3% of global tea production (see Table 3.2).
Table 3.2 Proportion of output of some tea producing countries in 2014-2017
2014
2015
2016
2017
Perc
Perc
Perc
Perc

Countr
Value
enta Value
enta Value
enta Value
enta
y
(tons)
ge
(tons)
ge
(tons)
ge
(tons)
ge
(%)
(%)
(%)
(%)
India
1.207.31 15,8 1.23.314 15,2 1.250.49 15,1 1.325.05 15,4
0
4
0
2
0
7
0
5
China

2.095.57 27,4 2.277.00 28,1 2.313.00 28,0 2.460.00 28,6
0
9
0
0
0
7
0
9
Sri
338.032 4,43 341.678 4,21 349.580 4,24 349.699 4,07
Lanka
Kenya
445.105 5,84 399.100 4,92 473.000 5,74 439.857 5,12
Indones
154.369 2,02 132.615 1,63 144.015 1,74 139.362 1,62
ia
Turkey
226.800 2,97 239.028 2,95 243.000 2,94 234.000 2,72
Japan
Vietna
m
Argenti
na
Banglad
esh
World

83.600

1,09

79.500

0,98

80.200

0,97

81.119

0,94

228.360

2,99

236.000

2,91

240.000

2,91

260.000

3,03

82.887

1,08

82.492

1,01

85.015

1,03

80.608

0,94

63.780

0,83

66.101

0,81

64.500

0,78

81.850

0,95

7.621.15 100,
4
00

8.101.50 100,
3
00

8.239.97 100, 8.574.50 100,
3
00
3
00
(Source: FAO data)

3.1.3 Tea yield
It is evident that the output of fresh bud tea nationwide increased over the past years
compared to the tea growing area (in the period of 2010-2017 the area increased by
8.82%, the production increased by 31%) (see Table 3.1).
11


Table 3.3 Tea productivity of Vietnam and some countries in the world
(Unit: tons / ha)
2010 2011 2012 2013 2014 2015 2016 2017
Argentina 24,82 25,11 21,06 21,31 21,27 20,83 21,46 20,35
Bangladesh 11,46 10,67 10,79 11,36 10,64 10,94 10,73 15,19
China

10,16 9,86
10,31 10,36 10,56 10,76 10,89 11,11
India
17,11 18,25 18,76 21,43 19,98 21,76 21,65 21,31
Indonesia 12,06 11,97 11,79 11,90 12,98 11,54 12,28 12,25
Japan
18,16 17,77 18,71 18,67 18,66 18,06 18,60 18,75
Kenya
23,20 20,11 19,38 21,77 21,92 19,05 21,64 20,12
Sri Lanka 14,93 14,75 14,86 15,32 15,22 15,16 15,04 14,95
Turkey
30,97 29,20 29,66 27,79 29,82 31,36 31,82 28,49
Vietnam
7,0
7,50
7,68
8,02
8,34
8,56
8,69
8,88
Average
18,04 17,57 17,38 17,89 18,08 17,95 18,43 18,36
(Source: FAO data)
3.1.4 Tea export value
Currently, Vietnamese tea products are exported to more than 100 countries in the
world, with a variety of rich and diverse teas. However, the value of our country's
tea industry is still low, only reaching an export turnover of over 217.834 million
USD / year in 2018) - a modest figure compared to other agricultural products such
as coffee, pepper ...

Table 3.4 Vietnam's export and export value of tea
Export Quantity
Export Value
Year
Quantity
Percentage
Value (USD Percentage
(tons)
(%)
millions)
(%)
2012
146.708
224,589
2013
141.434
-3.59%
229,719
2.28%
2014
130.000
-8.08%
230,000
0.12%
2015
124.780
-4.02%
213,130
-7.33%
2016

130.900
4.90%
217,200
1.91%
2017
139.785
6.79%
227,929
4.94%
2018
127.338
-8.90%
217,834
-4.43%
(Source: Statistics of General Department of
Customs)
3.2 Assessing the current situation of Vietnam's export tea industry
competitiveness
3.2.1 Situation of teamarket share
- Market share compared to the world market
The export value shown by turnover did not change much between 2012 and
2017, the percentage of market share in the total amount of exported tea in the world
12


decreased from 3.56% to 2.82%. However, Vietnam still maintains as one of the top
10 exporting countries in the world.
Table 3.6 Tea export turnover of some leading countries

Year

2012
Export
Value
(USD
thousand)
1.042.116

2013
Export
World
Value
percenta
(USD
ge (%)
thousand)
16.5
1.246.308

2014
Export
World
Value
percenta
(USD
ge (%)
thousand)
16.22 1.272.663

2015

Export
World
Value
percenta
(USD
ge (%)
thousand)
18.2
1.381.530

2016
Export
World
Value
percenta
(USD
ge (%)
thousand)
21.51 1.485.022

2017
Export
World
Value
percenta
(USD
ge (%)
thousand)
22.58 1.609.960

World
percenta
ge (%)

1

China

2

Sri Lanka 1.403.154 22.21

1.530.138 19.91

1.609.339 23.01

1.321.899 20.59

1.251.730 19.03

1.513.207 18.82

3
4
5
6
7
8
9
10

Kenya
India
Germany
Vietnam
Poland
UAE
USA
England

1.218.039
819.630
249.052
229.719
202.301
335.635
95.554
185.166

642.436
656.214
248.354
230.000
235.580
312.642
107.799
146.984

724.124
677.933

215.570
213.130
180.630
116.871
110.360
141.141

745.053
661.719
235.441
217.200
194.278
117.565
127.971
130.611

1.424.682
768.194
250.145
226.797
201.196
186.112
135.847
133.673

635.621
685.600
222.923
224.847
174.917

229.095
86.689
196.242

10.06
10.85
3.53
3.56
2.77
3.63
1.37
3.11

15.85
10.67
3.24
2.99
2.63
4.37
1.24
2.41

9.19
9.38
3.55
3.29
3.37
4.47
1.54
2.1

11.27
10.55
3.35
3.32
2.81
1.82
1.72
2.2

11.33
10.06
3.58
3.3
2.95
1.79
1.95
1.99

20.02

17.72
9.55
3.11
2.82
2.5
2.31
1.68
1.66

(Source: FAO data)
- Export market structure
Table 3.7 Main export markets of Vietnamese tea in 2018
+/- compared to year
Year 2018
2017 (%)*
Quantity
Value
Market
(tons)
(USD)
Quantity
Value
Export
127.338
217.834.138 -8,9
-4,43
Turnover
Pakistan
38.213
81.632.660 19,42
18,82
Taiwan
18.573
28.752.190 6
5,35
Russian
13.897
21.209.765 -19,98
-14,62

Mainland
10.121
19.667.609 -8,86
34,24
China
Indonesia
8.995
8.970.471
-6,18
2,75
USA
6.102
7.334.595
-13,15
-8,96
Saudi
2.218
5.719.161
28,88
33,11
Arabia
U.A.E
2.712
4.209.844
-59,76
-59,1
Malaysia
3.931
3.035.875
9,29

11,56
Ukraine
1.489
2.456.144
6,59
16,22
Germany
392
1.958.538
4,26
39,07
13


Philippines
Poland
India
Turkey
Kuwait

625
1.022
868
381
17

1.603.404
19,96
24,01
1.559.879

-16,98
-24,65
905.674
-49,94
-56,62
784.440
-42,19
-48,1
46.008
-22,73
-23,62
(Source: Statistics of General Department of

Customs)
3.2.2 Quality of preprocessing tea
In fact, the whole tea area in our country exists some degraded varieties of low
quality such as midland (accounting for over 44%), a relatively high proportion of
high-yield PH1 cultivars. But the product quality is low. In addition, the old tea
garden over 20 years accounts for 25%, the productivity and quality of buds has
decreased. This situation requires replanting and completely eliminating low-quality
tea varieties within the next 5 years. Only growing good tea varieties on a large scale
can create products of uniform quality, creating large, uniformly quality batches.
3.2.3 Tea enterprisese’ technology capacity
Table 3.9 Assessment of tea industry on technology used compared to the
world level (%)
Tea
Average compared to other
sectors
0
Higher

0
61,54
Equal
58,97
38,46
Lower
41,03
100
Total
100
(Source: Survey results of
VBCSD)
According to the competitiveness report of three sectors: tea, coffee and rubber
(2015) of the Vietnam Business Council for Sustainable Development (VBCSD)
shows that: in general, the technological level of enterprises Tea industry is at par
and lower than the world level. This is also a good illustration for Vietnam's
production model is only in the early stages, when the value added is not much, not
deeply involved in the global value chain.
3.2.4 Tea enterprises’ access to capital
Table 3.13 Assessment of enterprises on access to capital from official
sources (%)
Degree evaluation Tea
Average of sectors participating in
the survey
10,22
Very convenient 11,36
36,36
37,95
Advantage
38,64

37,23
Normal
13,64
14,6
Hard
14


Very difficult
Total

0
100

0
100

(Source: Survey results of VBCSD)
From the survey results conducted by VBCSD, it shows that the level of
convenience in accessing formal capital (promotion funds, banks ...) of enterprises
in industries is at a fairly average level. Of which 13.6% of tea enterprises responded
that they had difficulty in accessing formal capital, lower than the survey average of
all three industries at 14.6%. This shows that the results of the easing of credit
conditions for businesses have had an impact but not much and not yet thoroughly.
3.2.5 Tea enterprises’ lingkage capacity
Looking at the table below, it can be seen that the majority of tea enterprises trading
in raw materials in the country (up to 88.7% of enterprises) in which: 69% of
enterprises said that they purchased raw materials in the area. The province and
19.7% of enterprises buy and sell raw materials with businesses in other regions.
The survey results recorded a relatively small percentage of enterprises having

trading activities with foreign enterprises (11.3%), of which: 8.5% had trading of
materials with ASEAN countries and only 2.8% of enterprises have trade relations
with non-ASEAN countries.
Table 3.14 Location of enterprises that buy / sell raw materials (unprocessed raw
materials to manufacture products)
STT Source of raw material purchasing
Average
Percentage
(%)
69,0
1
In the province
19,7
2
Other regions
8,5
3
ASEAN countries
2,8
4
Non-ASEAN countries
(Source: Survey results of VBCSD)
3.2.6 Brand of products
In fact, Vietnam has not been recognized by the world as a leading producer and
exporter. Vietnamese tea also has no brand in the world. The export market share of
Vietnamese tea to developed countries like the EU and the US ... is still quite low,
few businesses meet the standards set by the countries. Most of Vietnam's tea
exports still mainly export to easy-going markets such as Pakistan, Poland, Saudi
Arabia, China, etc. At the same time, tea products are only exported mainly as raw
materials. The brand is still limited.

3.3 Assessment of factors affecting the competitiveness of Vietnam's export tea
industry
3.3.1 Analysis of survey sample
A total of 400 questionnaires were issued, the number of questions returned was
336, after eliminating the number of invalid questionnaires, the number of
questionnaires included in the analysis was 295 questions, accounting for 65.5% of
the total questions raised. .

15


3.3.2 Test the factor model affecting tea competitiveness
Analyze factors and reliability of data
Table 3.16 Results of independent factor analysis
Nhân tố
1
2
3
4
5
6
NTSX1
.793
NTSX2
.700
NTSX3
.787
NTSX4
.897
QT1

.664
QT2
.958
QT3
.707
HDM1
.631
HDM2
.835
HDM3
.854
VTCP1
.716
VTCP2
.741
VTCP3
.698
VHBD1
.545
VHBD2
.555
VHBD3
.677
CSP1
.559
CSP2
.768
CSP3
.688
4.772

2.945
1.893
1.649
1.291
1.212
Eigenvalue
23.862 14.725 9.464
8.243
6.455
6.058
Variance (%)
.877
.823
.826
.770
.704
.711
Cronbach α
Total variance extracted: 62,178%; KMO= 0,741; P=0,000
(Source: Summary of processing results on SPSS 22
software)
Testing correlation coefficient
Table 3.18 Correlation coefficients
NTSX QT
NTSX Pearson
Correlation
Pearson
QT
Correlation
HDM Pearson

Correlation
VTCP Pearson
Correlation

HDM VTCP

1
.047

1

.346**

.113*

1

.123*

.468**

-.034 1

16

VHB
D
CSP

VHBD Pearson
.452** .054
.386** -.047
1
Correlation
CSP Pearson
.233** .191* .115* .066
.297** 1
Correlation
**. Correlation at statistical significance level 0.01 (2-tailed).
*. Correlation at statistical significance level 0.05 (2-tailed).
(Source: Summary of processing results on SPSS 22
software)
Testing structural models
- Assess the reliability of the model
The reliability parameters of the model are reviewed in detail before conducting the
test of influence level of factors.
Table 3.19 Coefficients determining reliability of analytical data
Cronbach's Độ
tin Phương sai
Alpha
cậy tổng trích (AVE)
hợp
Production Conditions
0.877
0.915
0.730
Management Conditions
0.824
0.895

0.740
Marketing Activities
0.828
0.897
0.745
Role of Government
0.770
0.866
0.683
Indigenous culture
0.746
0.849
0.738
Demand Conditions
0.788
0.816
0.693
(Source: Summary of processing results on SmartPLS
software)
- Test the meaning of links in the model
Table 3.23 Results of significance level of links (using Bootrapping)
Original Sample Standard
T Statistics
Sample
Mean
Deviation
P Values
(|O/STDEV|)
(O)
(M)

(STDEV)
Production Conditions >
Competitiveness 0.401
0.397
0.038
10.508
0.000
Capacity
Management
Conditions
->
0.240
0.242
0.038
6.288
0.000
Competitiveness
Capacity
Marketing Activities ->
Competitiveness
0.260
0.260
0.055
4.688
0.000
Capacity
Role of Government ->
Competitiveness
0.184
0.188

0.036
5.065
0.000
Capacity
17


Indigenous culture ->
Competitiveness
-0.078
-0.079 0.047
1.665
0.097
Capacity
Demand Conditions ->
Competitiveness
0.085
0.085
0.041
2.091
0.037
Capacity
(Source: Summary of processing results on SmartPLS
software)
In Table 3.23, links with a value of less than 0.05 are significant links with 95%
confidence. The results show that not all factors influence the competitiveness of
Vietnamese tea exporters, in particular the link between indigenous culture and
unsupported competitiveness (t). = 1,665 <1.96; p> 0.05). In addition, the remaining
5 links show a strong influence on the competitiveness of tea export enterprises (t
=> 1.96; p <0.05). In which, linking production conditions -> competitiveness has

the strongest impact (t = 10,508> 1.96; p <0.05), followed by management activities
-> competitiveness (t = 6,288> 1.96 ; p <0.05), followed by the government role ->
competitiveness (t = 5.065> 1.96; p <0.05). The next link is marketing activities ->
competitiveness (t = 4,688> 1.96; p
<0.05). And finally, the demand
condition
for
the
product
->
competitiveness (t = 2.091> 1.96; p
<0.05), the test result of this link shows
Productions Conditions
the demand condition for the product.
affecting the competitiveness of
Vietnamese tea exporters, the level of
influence is not great.
Management Conditions
Figure 3.2 Model test results
Figure 3.2 shows the beta value of the
links, combining table 3.21, table 3.22
and Figure 3.23 can see that the beta
value of indigenous culture is negative,
which shows that the hypothesis H5 is
not supported by The model suggests
that indigenous culture affects the
competitiveness of Vietnamese tea
exporters. Besides, the remaining 5
hypotheses are confirmed by the
following model:

Hypothesis 1: The results indicate that
the production factor has a positive
relationship to the competitiveness of the
export tea industry (H1: β = 0,401; t =

Marketing Activities

Competitiveness
Capacity
Role of Government

Indigenous culture

Demand
Conditions

18


10,508, p <0.01). It can be concluded that Hypothesis 1 is supported by the
statement that "production factors have a positive relationship to the competitiveness
of the export tea industry".
Hypothesis 2: The relationship between governance factors and competitiveness of
export tea industry. The results show that governance factors have a positive impact
on the competitiveness of the export tea industry (H2: β = 0.240, t = 6.288, p <0.01).
Hypothesis 3: Assuming that marketing has an impact on tea competitiveness, the
results indicate that this relationship is strongly supported (H3:: = 0.260, t = 4,688, p
<0, 01).
Hypothesis 4: Assume that there is a positive relationship between government role
and tea competitiveness. The results indicate that hypothesis 4 is supported and that

the government's role has an impact on tea industry's competitiveness (H4: β =
0.184, t = 5.065, p <0.01).
Hypothesis 5: Testing the relationship between indigenous cultural factors and the
competitiveness of export tea industry is not supported by the model (H5: β = 0.078, t = 1.665, p> 0.05) .
Hypothesis 6: Predicting the relationship of product demand factors and
competitiveness of export tea industry. The results showed that demand factor does
not have a big impact on the competitiveness of the export tea industry (H6: β =
0.085; t = 2.091 p <0.05).
From the results of the hypothesis test, we can draw the regression model as follows:
Y NLCT = 0,401X NTSX + 0,240X QT +0,260X HDM +0,184X VTCP + 0,085X CSP
3.4 General assessment of the export tea industry competitiveness
3.4.1 Achievements
Regarding the market share, quality, categories and costs of the export tea industry,
we can see that over the past decade, Vietnam's tea export has continued to be stable
and developed with increasing volume and turnover. increase.
3.4.2 Limitations
- Regarding tea quality: Vietnam's tea quality is still low compared to the world
quality tea area, the number of tea returned is still high.
- Regarding tea prices: Our export price is much lower than that of India and Sri
Lanka and only slightly higher than Indonesia.
- Regarding the tea brand: Although it is one of the top 5 tea exporting countries in
the world, Vietnamese tea brand has not been mentioned yet.
- Tea processing technique: Tea processing technology of Vietnamese enterprises is
still low compared to the world average, and is one of the main causes of low quality
of tea in Vietnam.
3.4.3 The cause of the limitations
Firstly, the way of planting and processing tea does not comply with the standards
so it is difficult to ensure quality.
Secondly: in terms of quality and prestige in the international market, Vietnamese
tea is still not known and often ranks behind even Indonesian tea.

19


Thirdly: Vietnam tea enterprises are currently quite small compared to tea groups in
the world
Fourthly: in Vietnam, the workers and tea farmers are mostly ignorant and untrained
Chương 4 SOLUTIONS AND RECOMMENDATIONS TO IMPROVE THE
EXPORT TEA COMPETITIVENESS CAPACITY IN THE INTEGRATED
PERIOD
4.1. International integration, opportunities and challenges for Vietnam's
export tea industry
4.1.1. International integration brings opportunities to export tea to many
fastidious markets
Vietnam has now participated in the signing of many trade agreements with
countries around the world. Among 16 FTAs, 12 have signed and entered into force;
1 FTA has concluded negotiations and legal review for approval (Vietnam - EU
FTA) and 3 other FTAs are under negotiation, including: RCEP (ASEAN + 6);
Vietnam - EFTA and Vietnam - Israel.
These FTAs have been opening up the market for Vietnam's exports, providing an
opportunity for Vietnam to connect and participate more deeply in the value chain
and global production network.
4.1.2. E commerce is changing the traditional commerce
Results from PWC - one of the leading professional service networks in the world
(offices in 158 countries and more than 236,000 employees) on the survey of the
situation of commercial shopping in the world in the year 2017 shows that
customers and consumers are trending shopping through means, online channels
instead of traditional methods at the store as today.
4.1.3. The 4.0 industrial revolution - opportunities and challenges for the export
tea industryNông nghiệp 4.0, the development taking place in parallel with the
development of the world in Industry 4.0 is a period of strong application of

internet-connected sensors (IoT), LED technology, unmanned aerial vehicles. ,
intelligent agricultural robots and smart farm finance ...
4.2 Viewpoints and orientations for developing tea exports in the period of
2020-2030
4.2.1 Viewpoint on developing tea export
Firstly, promoting the development of exported tea will create a stable production
area, contributing to poverty reduction for ethnic minorities in mountainous and
midland areas (especially in remote and isolated areas). remote areas and areas
where trees other than tea cannot be grown).
Secondly, when tea production and export development is raised, the ability to
expand exports will make economic efficiency higher and higher, export turnover
will increase, contributing to increasing budget revenues, improving good balance of
payment.
Thirdly, in order to have a perfect export brand, high value-added tea product, many
technologies of other related industries such as biotechnology, chemistry, mechanics
20


are required. art design ... Therefore, when the tea industry develops, it is time to
require technological innovation, production management and business of other
industries.
4.2.2 Export development orientation of tea industry
Decision No. 1684 / QD-TTg dated September 30, 2015 of the Prime Minister on
“Approving the strategy of international economic integration of agriculture and
rural development sector to 2030” specifies:
Tea is one of Vietnam's important export agricultural products. Vietnam's tea is
exported to more than 100 countries and territories with the main export markets
being Pakistan, Afghanistan, Taiwan, Iran and China.
General solutions to promote tea market development:
- Improve the capacity to apply standards in raw tea production; linking raw material

areas with processing plants; focus on intensive farming to increase productivity and
good fertilization for tea plants.
- Do not expand the number of factories but should focus on quality control,
production processes according to food hygiene and safety standards, GMP of
processing plants.
- Develop programs to support the replacement of old tea varieties with new ones
with high yield.
4.3 Solutions to improve competitiveness of export tea industry
4.3.1 Improve competitiveness by extending production and improving product
quality
- Improve the quality of tea raw materials
- Diversifying the synthetic products with tea and exploiting products from tea soil
- Planning and developing material areas
- Investment in science and technology, processing technology and export of tea
- Modernizing processing technology
4.3.2 Improving enterprise management
To manage human resources well, tea businesses need to synchronously implement
many measures. First of all, determine what is the strategic goal of each business to
find suitable human resources. Next, the arrangement of labor in the enterprise must
be based on the capacity and qualifications to arrange the right people and the right
jobs, associating the allocation of resources with the organization and reorganization
of the enterprises accordingly. with business objectives and innovation,
technological innovation. Building criteria, professional standards, techniques,
professional skills and skills for each position and job title to facilitate the
management and supervision.
4.3.3 Improving marketing

21

- Research and forecast tea market demand
- Invest in finishing products
- Invest in mixed promotion tools
4.3.4 Developing tea brand associated with Vietnamese culture
Building a good symbol of goods in the eyes of the customer is a difficult problem
and requires a long time. Once the goods have their own symbols, have built up a
reputation in the hearts of customers, so that when making a purchase decision,
customers always think of their products, the export of tea products or Other
products with Vietnamese tea brand will be much easier.
4.3.5 Finding new markets associated with the product demand
- Building a team of market officers with high knowledge and professional
competence and real enthusiasm for the profession in market research.
- Search information on export markets, including official channels such as: market
consulting organizations, representative offices of companies, and also informal
channels such as through contact with customers.
4.3.6 Develop and training human resources
From the above labor constraints, the tea industry needs to provide reasonable
training methods such as:
- Engineers sent by provinces for training at universities must have contracts after
graduation and return to work in their localities.
- Opening training courses for short-term managers for leaders of factories
- Technical workers trained by prestigious technical workers' schools
- Opening technical training courses for tea growers and tea processors under the
agricultural and industrial extension program.
An important issue is that all cadres in the future need to be universalized with
information technology and foreign languages. Because in this current era, without
these skills, it is difficult to work effectively.
4.3.7 Completing the government's support policies for tea industry
- Develop policies to support enterprises to invest in renewing equipment, renewing
technologies and renewing production processes to meet quality and standards of

export markets; promote research and development activities, application of science
and technology, especially high technology, in order to quickly switch to advanced
production and management methods in accordance with the development directions
of the revolution. 4th industry.
- Encouraging and supporting enterprises to formulate a strategy to export goods
suitable to each market and enterprise's capacity; participate in overseas production
and distribution networks and global value chains.
- Encouraging and creating favorable conditions for enterprises to strengthen
linkages between enterprises supplying raw materials and raw materials with
enterprises producing final products, between stages of production - transportation processing - preservation and consumption. , between farmers - entrepreneurs - state
- scientists (in agriculture), between domestic enterprises and foreign businesses.
4.4 Recommmendations
22


For state management agencies
- Policy on organization and management of tea export
- Improve national competitiveness
- Capital mobilization policy
- Applying preferential and flexible lending policies
- Subsidy policy
- Policy of tax
- Policies and guidelines for participation in the international trade community
CONCLUSIONS
Tea is one of the major export items of Vietnam. In 2018, the country's tea exports
reached 127.34 tons, worth 217.83 million USD, maintaining the 5th position among
the 10 largest tea exporting countries in the world. However, in recent years, the
issue of price, product quality and overall competitiveness of the export tea industry
in Vietnam is low, resulting in low value. The thesis with the topic: "Enhancing the
competitiveness of Vietnam's export tea industry in the integration period" was

implemented and solved the following issues:
(1) Define a set of basic criteria to improve the competitiveness of exported tea
products including: Market share of tea products, Quality of raw materials,
Technology capacity of tea enterprises, Access to capital of Tea industry enterprises,
Associate capacity, Product brands
(2) Proposal to propose a research framework including 6 factors affecting tea
industry competitiveness including: Factors of production conditions, Conditions of
demand for products, Conditions of governance, Role of tea government, Indigenous
Culture
(3) Provide some lessons learned from three countries with large tea production and
export volume in the world (Kenya, Sri Lanka and China) in improving the
competitiveness of export tea of Vietnam.
(4) Overview of the entire tea industry in Vietnam in terms of tea area, production
output, tea garden productivity, export turnover to see Vietnam's advantages in the
world tea map.
(5) Through the process of summarizing theory, expert interviews and preliminary
testing, the study has formulated an official research model of 6 independent
variables (including "Production factors", "Demand" for products "," Governance ","
Government Policy "," Marketing Activities "and" Indigenous Culture "). Research
results from PLS-SEM model analysis show that 5 out of 6 independent variables
have a positive impact on tea competitiveness. 5 variables with positive effects
including the above regression model are explained as follows: From the results of
the hypothesis test, we can draw the regression model as follows: production factors
with the strongest impact on Tea industry's competitiveness (β = 0,401), this means
that if the production factor is improved by 1 unit, the competitiveness of
Vietnamese tea exporters will increase to 0,401 units. . Ranked No. 2 is marketing
activity, with a coefficient of β = 0.260 which shows that if the factors related to
23