Porter's Model Approach for Rice Industry
Why should Vietnam develop rice production as its competitive advantage?
Rice is one of the leading food crops in the world with 85% of its production accounted by human consumption (The Importance of Rice, 2011). Rice is also the most important crop to millions of small farmers who grow it on millions of hectares throughout the region, and to the many landless workers who derive income from working on these farms. In the future, it is imperative that rice production continue to grow at least as rapidly as the population, if not faster. The world’s annual rough rice production will have to increase markedly over the next 30 years to keep up with population growth and income-induced demand for food (The Importance of Rice, 2011).
In Viet Nam, rice plays an important role in national food security and political stability. Rice also has a direct effect on social security because it is consumed by a vast majority of the total population and is an important source of income for more than 60 million people living in agriculture and rural areas. Rice is the country’s main crop, accounting for more than 90% of total cereal production. Since the 1990s, the volume of rice exports has risen dramatically, making Viet Nam the second largest rice exporter in the world. Nevertheless, serious food security concerns in the country remains. Pockets of poverty and malnutrition persist more in remote areas and among ethnic tribes (Asian Development Bank, 2012 p.01). Average food per capital has been increased rapidly, but inequally among regions: In 2007, Mekong is 1,075 kg, South Central Coast 287 kg; the North West 217 kg and the Central Highland 174 kg (the variation between the Mekong and the Central Highland is 6.17 times)(Nguyen Vu Hoan, 2010 p.13).
Furthermore, rice industry is critical in the Vietnamese’s sustainable economic environment. Rice export helps increase foreign currency inflows and capital accmulation for the industrialization modernization process of the
Rice is one of the leading food crops in the world with 85% of its production accounted by human consumption (The Importance of Rice, 2011). Rice is also the most important crop to millions of small farmers who grow it on millions of hectares throughout the region, and to the many landless workers who derive income from working on these farms. In the future, it is imperative that rice production continue to grow at least as rapidly as the population, if not faster. The world’s annual rough rice production will have to increase markedly over the next 30 years to keep up with population growth and income-induced demand for food (The Importance of Rice, 2011).
In Viet Nam, rice plays an important role in national food security and political stability. Rice also has a direct effect on social security because it is consumed by a vast majority of the total population and is an important source of income for more than 60 million people living in agriculture and rural areas. Rice is the country’s main crop, accounting for more than 90% of total cereal production. Since the 1990s, the volume of rice exports has risen dramatically, making Viet Nam the second largest rice exporter in the world. Nevertheless, serious food security concerns in the country remains. Pockets of poverty and malnutrition persist more in remote areas and among ethnic tribes (Asian Development Bank, 2012 p.01). Average food per capital has been increased rapidly, but inequally among regions: In 2007, Mekong is 1,075 kg, South Central Coast 287 kg; the North West 217 kg and the Central Highland 174 kg (the variation between the Mekong and the Central Highland is 6.17 times)(Nguyen Vu Hoan, 2010 p.13).
Furthermore, rice industry is critical in the Vietnamese’s sustainable economic environment. Rice export helps increase foreign currency inflows and capital accmulation for the industrialization modernization process of the