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Rice market integration in the Mekong River Delta

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  • Clemens Lutz
  • Cornelis Praagman
  • Luu Thanh Duc Hai

Abstract

In the last decades Vietnam has become a major supplier in the world's rice market. This position is the result of the policy reforms that have been implemented in the agricultural sector. This paper assesses the impact of the liberalization policies and focuses on the spatial price differences in the domestic rice market. The results show that price patterns correlate strongly in the Mekong River Delta. Even prices in other regions are integrated with price patterns in the South. Interestingly, private traders in the Mekong Delta are only indirectly responsible for the latter result. They satisfy local demand and deal with state-owned enterprises (SOEs). In the framework of the national food security policy, the state-owned food companies 'subsidize' transactions between the South and the North. Moreover, the state-owned food companies still dominate export transactions. The latter issues constitute two major queries for policy makers involved in the liberalization of the rice market, as further policy measures should not jeopardize the interests of domestic rice consumers. Copyright (c) 2006 The Authors Journal compilation (c) 2006 The European Bank for Reconstruction and Development..

Suggested Citation

  • Clemens Lutz & Cornelis Praagman & Luu Thanh Duc Hai, 2006. "Rice market integration in the Mekong River Delta," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(3), pages 517-546, July.
  • Handle: RePEc:bla:etrans:v:14:y:2006:i:3:p:517-546
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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0351.2006.00260.x
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    References listed on IDEAS

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    1. Minot, Nicholas & Goletti, Francesco, 2000. "Rice market liberalization and poverty in Viet Nam:," Research reports 114, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Brosig, Stephan & Glauben, Thomas & Götz, Linde & Weitzel, Enno-Burghard & Bayaner, Ahmet, 2011. "The Turkish wheat market: spatial price transmission and the impact of transaction costs," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 147-161.
    2. Niels Hermes & Robert Lensink & Clemens Lutz & Uyen Nguyen Lam Thu, 2016. "Trade credit use and competition in the value chain," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(4), pages 765-795, October.

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