INTRODUCTION
Research background
Since the Doi Moi reforms in 1986, Vietnam's foreign policy has shifted significantly from International Economic Integration to Comprehensive Economic Integration and now to In-depth International Integration Trade liberalization plays a crucial role in this integration process, highlighted by Vietnam's accession to the WTO in 2007, marking a pivotal moment in its international integration journey By December 2020, Vietnam had engaged in 15 Free Trade Agreements (FTAs), with 13 already in effect and two under negotiation These FTAs include commitments for tariff reductions and the elimination of trade barriers, which have notably benefited Vietnam's exports, particularly in sectors with high comparative advantages such as textiles and garments.
The textile and garment industry is a vital component of Vietnam's export economy, with exports rising from approximately USD 8.60 billion in 2007 to USD 39.42 billion in 2019, marking a fivefold increase This sector ranks second in export value in Vietnam, following electrical machinery and equipment, and positions the country as the world's fourth largest exporter of textiles and garments, trailing only China, the EU, and Bangladesh.
In 2018, the industry employed 1,870,239 individuals, representing 12.6% of the total workforce in registered enterprises in Vietnam Between 2014 and 2019, this sector experienced an impressive average annual growth rate of approximately 17% (T Nguyen, 2020).
The European Union is the second largest market for textile and garment imports, following the USA Since Vietnam's accession to the World Trade Organization (WTO), the export value of its textile and garment products to the EU, including the UK, has seen significant growth, rising from approximately USD 1.65 billion to around USD 4.78 billion.
In 2019, Vietnam's export market share of textile and garment products to the EU increased to 2.4%, up from 2.2% in the previous year, highlighting the EU's growing significance as a market for Vietnam's textile industry following the implementation of the EVFTA.
2 into effect on 1st August 2020 This FTA is expected to bring expansive preferential market access for these goods to the EU
The rise in Vietnam's bilateral exports does not necessarily indicate improved export efficiency, which measures the country's performance with trading partners Enhancing export efficiency is crucial for maximizing Vietnam's ability to capitalize on international trade opportunities, ultimately leading to a peak in actual trade values Studies on countries like China, India, and Bangladesh reveal that despite increasing total export values, these nations still struggle with low export efficiencies due to factors such as economic distance, institutional challenges, and inadequate infrastructure Vietnamese researchers, including Doan & Xing (2018) and Trung et al (2018), have found similar trends in their analyses, highlighting the need for improved export strategies.
Problem statement and research purpose
Despite numerous studies on export efficiency in various countries, Vietnam has seen limited scholarly focus on this topic, particularly regarding the textile and garment sector Existing research tends to address overall export efficiency rather than specific products, revealing a generally low export efficiency at the aggregated level (Drysdale et al., 2000; Doan & Xing, 2018) This raises questions about whether the textile and garment sector mirrors this low efficiency or stands out as an exception Additionally, few studies have explored the factors influencing export efficiency in this industry By calculating the export efficiency of Vietnam's textile and garment sector and identifying its determinants, a clearer understanding of the country's export performance can be achieved This information will enable the government to formulate more effective policies aimed at maximizing export efficiency, particularly in light of new opportunities presented by the EU-Vietnam Free Trade Agreement (EVFTA).
3 efficiency of Vietnam‟s textile and garment to EU countries, Vietnam will take full advantage of EVFTA
This thesis aims to evaluate the export efficiency of Vietnam's textile and garment sector by utilizing a model similar to previous studies, focusing on the latest data specifically for exports to EU countries Additionally, it examines the factors influencing export efficiency Based on the research findings, the study offers recommendations to enhance Vietnam's export performance in this industry.
Research questions
This master thesis aims to answer two questions:
1 What is the export efficiency score of Vietnam‟s textile and garment to EU countries from 2007 to 2019?
2 Which country-specific factors affect the export efficiency of Vietnam‟s textile and garment to EU countries during that period?
Scope of the research
The time scope is from 2007 to 2019 The spatial scope is Vietnam‟s textile and garment to 28 EU countries because the UK was still a member of the EU during this period.
Research methodology
This thesis employs a quantitative approach utilizing two regression models to analyze export efficiency The first model, a stochastic frontier gravity model, assesses export efficiency, while the second model investigates country-specific factors influencing this efficiency Both models are estimated simultaneously through a one-step estimation process Export value data is sourced from UN Comtrade, while country-specific factors are derived from the Global Competitiveness Report by the World Economic Forum (WEF) Additional data is gathered from various reputable sources, including the World Bank, Centre d'Études Prospectives et d'Informations Internationales (CEPII), and Brugel.org.
Significance of the research
This thesis makes several important contributions: h
This study utilizes the most recent data to analyze Vietnam's export efficiency in the textile and garment sector specifically for EU countries, rather than relying on aggregated global data By focusing on this particular region and industry, the research provides an accurate reflection of the current state of Vietnam's textile and garment exports to the EU.
This study provides a comprehensive analysis of the efficiency of Vietnam's textile and garment exports, detailing the methods of measurement and the influencing factors Additionally, by examining these determinants, the paper presents recommendations for adjusting their impacts to enhance export efficiency.
This thesis offers a thorough methodology for assessing the export efficiency score of Vietnam's textile and garment sector to EU countries, while also identifying the influencing factors The research employs the stochastic frontier gravity model with one-step estimation, as developed by Battese & Coelli in 1995.
Structure of the research
This thesis is organized as follows:
Chapter 1: Introduction This chapter provides an overview of the research including research background; problem statements; definitions of key terms; research purposes; research questions; scope, method and significance of the research
Chapter 2: Literature review This chapter briefly presents previous academic research related to this topic Chapter 2 contains four sections: Overview of textile and garment industry, and textile and garment industry export in Vietnam; research on trade potential, trade efficiency, and export efficiency at aggregated level; research on trade potential, trade efficiency, and export efficiency at disaggregated level The final part summarizes the research gap
Chapter 3: Methodology This chapter discusses the method and methodology I use Several reasons are provided to explain the selection of stochastic frontier gravity model and its variables This part also introduces this model and distinguishes it from conventional gravity model Data collection and data description is also included in this chapter h
Chapter 4: Research findings This chapter is divided into 2 parts First, it shows the impact of country-specific factors such as infrastructure, institution, and policy on export efficiencies of Vietnam‟s textile and garment export to EU countries Second, estimated scores of these efficiencies are also presented The results are compared to results of previous studies in the literature review
Chapter 5: Conclusions This chapter summarizes the main content and findings, provides some policy recommendations, indicates the limitations of this thesis, as well offers some suggestions for further research h
THEORETICAL FRAMEWORK AND LITERATURE REVIEW
Definitions
The export potential between two countries is determined by factors such as GDP, GDP per capita, and cultural and historical characteristics, representing the maximum exports achievable without trade barriers (Kalirajan, 1999) Export efficiency, or export performance, measures the ratio of actual exports to export potential, indicating the extent to which an exporter has realized its potential with an importer.
Overview of Vietnam textile and garment sector
2.2.1 Current status of Vietnam textile and garment industry
The textile and garment industry is a vital export sector in Vietnam, demonstrating consistent double-digit growth over the years As of December 31, 2018, there were 1,870,239 employees across 12,031 enterprises in this sector, representing 12.6% of the nation's workforce The industry comprises 7,627 garment manufacturers and 4,404 textile manufacturers, with the latter primarily catering to domestic markets due to quality concerns While a significant portion of these firms operates in the private sector, many are small and medium-sized enterprises (SMEs) Notably, foreign direct investment (FDI) firms account for 70% of the largest companies in the industry, alongside state-owned enterprises.
Figure 2.1: Main modes of production of Vietnam's textile and garment industry
Despite the rapid growth of Vietnam's textile and garment industry, it still struggles with low added value, primarily participating in the global supply chain through the CMT manufacturing method, which constitutes 65% of production This method, while easy to implement, yields the least added value compared to other methods like OEM/FOB (25%), ODM (9%), and OBM (1%) The industry's reliance on imported raw materials from countries like China and Korea, coupled with an unstable domestic supply, exacerbates this issue Additionally, challenges such as low-skilled labor and weak competitiveness among local firms further hinder the industry's potential for growth and value enhancement.
2.2.2 Current status of Vietnam textile and garment export to EU countries
In 2019, Vietnam secured the 4th position among the world's largest textile and garment exporting countries, following China, the EU, and Bangladesh The European Union serves as a crucial market for Vietnam's textile and garment industry.
From 2007 to 2019, Vietnam experienced a consistent increase in textile and garment exports, even amid global economic challenges In 2007, the export turnover for this sector was USD 8.60 billion, and by 2019, it had significantly risen, showcasing the resilience and growth of Vietnam's textile industry.
Vietnam's textile and garment exports to the EU have shown significant growth over the years, rising from USD 1.65 billion in 2007 to USD 1.85 billion in 2008 Although there was a slight decline to USD 1.78 billion in 2009 due to the global economic crisis, exports rebounded to USD 2.10 billion in 2010 and reached USD 2.79 billion in 2011 In 2012, the turnover slightly decreased to USD 2.72 billion, but from 2013 to 2019, the sector continued to demonstrate resilience and growth.
In 2019, the European Union emerged as the second largest market for Vietnamese textile and garment exports, following the United States, with total exports reaching USD 4.78 billion.
Between 2007 and 2019, the share of the European Union in Vietnam's total textile and garment export turnover experienced a decline, dropping from over 19% in 2007 to around 12% in 2019.
Figure 2.2: Export turnover of Vietnam's textile and garment, 2007 – 2019 (USD)
Vietnam's textile and garment exports to the EU have experienced more significant fluctuations compared to global trends Despite this volatility, the export growth rate to the EU has generally remained high, with notable exceptions in 2009 and 2012.
The global economic and European debt crises significantly impacted trade dynamics, with Vietnam's textile and garment exports to the EU experiencing a notable growth rate that occasionally surpassed global figures In 2019, these exports to the EU rose by over 5%, highlighting the resilience and competitive edge of Vietnam's textile industry in the European market.
Figure 2.3: Export growth rate of Vietnam's textile and garment, 2007 – 2019 (%)
Vietnam's textile and garment exports to the EU are significantly concentrated, with seven major markets—Germany, the UK, the Netherlands, France, Spain, Belgium, and Italy—dominating the trade Germany stands out as the largest import market, and in 2019, these seven markets represented 89% of Vietnam's total textile and garment export turnover to the EU, while the remaining 21 markets contributed only 11% The primary products exported fall under HS codes 61, 62, and 63, which together account for approximately 95% of the export structure.
Figure 2.4: Structure of Vietnam's textile and garment export to EU (by market, and by
HS code), 2019 (%) Data source: UNComtrade
Research on trade potential, trade efficiency, and export efficiency
Batra (2006) employed an augmented gravity model using ordinary least squares (OLS) to assess India's trade potential with 145 partners, utilizing cross-sectional data from 2000 In addition to fundamental variables like GNP and GNP per capita, he incorporated dummy variables reflecting historical and cultural factors such as borders, common languages, and colonization To address econometric challenges, he applied instrumental variables (IV) estimations to tackle endogeneity issues For country pairs with zero trade values, Batra implemented three strategies: excluding these pairs from the dataset, estimating a restricted model, and exploring alternative estimation methods.
This research highlights that Italy, the UK, and France show the greatest potential for increasing trade with India While India has largely tapped its export potential to the Commonwealth of Independent States (CIS) region, significant opportunities for expanding exports still exist with many individual countries within that area.
Abbas and Waheed (2019) employed a gravity model to examine the trade flow between Pakistan and 47 selected trading partners from 1980 to 2013 They utilized the model's coefficients to assess Pakistan's trade potential, building on the framework established by Batra (2006) Additionally, Abbas and Waheed incorporated two dummy variables to enhance their analysis.
The South Asian Free Trade Agreement (SAFTA) and bilateral free trade agreements (BFTAs) were analyzed using three models, with generalized least squares (GLS) estimation deemed the most effective method The findings indicated that Pakistan has significantly over-exploited its export potential with various Asian and European partners However, by diversifying its export portfolio rather than concentrating on a limited range of goods, Pakistan could enhance its export opportunities to several EU countries, including the UK, Bulgaria, France, and Greece.
Drysdale et al (2000) assessed trade efficiency between China and 57 trading partners using a stochastic frontier gravity model (SFGM), incorporating variables like GDP, population, geographical distance, common language, and resource complementarity They found that from 1991 to 1995, China's average trade efficiency as an exporter and importer was low, at 0.28 and 0.27, respectively Notably, China's exports to Ireland, Belgium-Luxembourg, Finland, and the Netherlands showed the highest efficiencies of 0.45, 0.43, 0.42, and 0.41, while Cyprus had the lowest at 0.21 To further investigate trade efficiency determinants, the study employed another regression model, considering country-specific policies and mutual understanding through regional blocks like APEC and the EU The analysis revealed that the OLS method faced heteroscedasticity issues, prompting the use of a White heteroscedasticity-consistent estimator Surprisingly, EU membership negatively affected China's trade efficiency The authors proposed policy measures, including reducing economic constraints, to enhance China's trade efficiency.
Kalirajan and Singh (2008) conducted a comparative analysis of export efficiency between India and China from 2000 to 2003 using two methods Initially, they employed a conventional gravity model with an OLS estimator, incorporating key factors such as the GDP and population of the importing country, geographical distance, trade openness, area, weighted average tariff, and non-tariff barriers.
A comparative analysis using a barrier index and growth competitiveness index revealed that China's export performance significantly outpaced India's By applying coefficients from China's model to assess India's export potential, researchers found that only 68% of India's potential was realized, compared to 86% for China Additionally, the stochastic frontier gravity model indicated that while China's export efficiency improved over time, India's remained stagnant To enhance its export efficiency, India should adopt key policies from China.
Roperto and Edgardo (2014) conducted a study to estimate and analyze the export efficiency of the Philippines, aiming to reduce the country's merchandise trade deficit Utilizing a Stochastic Frontier Gravity Model (SFGM), their research examined export data from 2009 to 2012 involving 69 key trading partners The initial model considered three independent variables: the GDP and population of the importer, along with the geographical distance to the Philippines Recognizing the oversight of "beyond the border" constraints in prior studies, they developed a second model to assess factors affecting export inefficiency, including various freedoms (such as corruption, fiscal, business, labor, monetary, trade, investment, and financial) and dummy variables representing mutual agreements like APEC and ASEAN Their findings revealed that APEC, ASEAN, common language, freedom from corruption, and labor freedom significantly improved export efficiency, while other indicators showed no substantial impact on export inefficiency.
The study indicated that "beyond the border" factors did not significantly impact the Philippines' export efficiency The authors recommended that future research should focus on "behind the border" elements to better understand the determinants of export efficiency Additionally, the Philippines' export efficiency score showed a slight decline over the surveyed period, with the mean value decreasing.
48% to 42% In 2012, the export flow was least effective with the EU, at 43% Among
The Philippines demonstrated the highest export efficiency among EU members, achieving an impressive 93.46% with the UK and 93.34% with Denmark Other countries, including Sweden (76.88%), the Netherlands (75.79%), Belgium (72.24%), and Finland (70.57%), also exhibited strong export efficiencies In contrast, Croatia (11.79%), Greece (13.79%), and Slovakia (16.20%) reported significantly lower export efficiencies.
Ravishankar & Stack (2014) also used an SFGM to examine the efficiency of trade integration between 17 Western European nations and 10 new members from 1994 to
In 2007, a study utilized maximum likelihood estimation (MLE) to analyze trade integration among EU countries, incorporating variables such as GDP of both exporters and importers, the absolute difference in logged GDP per capita, geographical distance, and both time-varying and time-invariant explanatory factors The authors introduced two dummy variables to account for the years new members joined the EU Findings revealed that post-Council for Mutual Economic Assistance (CMEA) dissolution, East-West EU trade integration demonstrated significant performance, with former communist nations achieving two-thirds of their trade potential with established EU countries Notably, Bulgaria and Romania exhibited higher trade integration levels than earlier entrants The authors recommended that enhancing infrastructure and lowering transportation costs could further boost exports for the ten new EU members.
Nguyen & Doan (2017) pioneered the use of a stochastic frontier gravity model to analyze the determinants of trade efficiency in Vietnam, focusing on 30 importing partners over an 11-year period from 1995 to 2015 Their study employed a two-step estimation process, with the first step incorporating standard independent variables from conventional gravity models, such as GDP, population, weighted distance, relative land area, and dummy variables for landlocked nations, along with a time trend variable In the second step, the trade efficiency derived from the initial model served as the dependent variable to explore additional influencing factors, including dummy variables for ASEAN membership, weighted tariffs, and economic indicators.
The research revealed that Vietnam's trade efficiency, particularly with the EU and NAFTA, was notably low, with export and import efficiencies averaging 21.21% and 19.78% respectively by 2015 Between 2010 and 2015, the highest export efficiencies were recorded with the Netherlands (47.57%), the UK (33.59%), Belgium (44.08%), and France (27.65%), while Greece, Germany, and Finland showed significantly lower efficiencies ranging from 2.39% to 7.24% Although AFTA contributed to an increase in trade efficiency, factors such as tariffs and domestic currency devaluation negatively impacted it To improve trade efficiency, Nguyen and Doan recommended that Vietnam pursue more regional Free Trade Agreements (FTAs) and remove artificial barriers by enhancing economic freedom and reducing tariffs.
Doan & Xing (2018) conducted a two-step estimation of SFGM to analyze Vietnam's export efficiency with 28 trading partners from 1995 to 2013, focusing on the impact of FTAs and rules of origin Their stochastic frontier model, similar to Nguyen & Doan (2017), included a variable for shared borders with importers The findings revealed that Vietnam's export efficiency improved significantly from 19.7% to 37.9% during this period, yet still indicated substantial room for growth, particularly in the EU market where only one-third of potential was realized Between 2010 and 2013, Vietnam's highest export efficiencies were recorded with Belgium (61.28%), the Netherlands (59.26%), Germany (43.48%), the UK (40.63%), and France (40.28%), while Greece exhibited the lowest efficiency at 10.91% Following the efficiency calculations, a regression model identified key determinants such as the restrictiveness of rules of origin, dummy variables for trade agreements, trade freedom indices, tariffs, non-tariff measures, and FDI from importers The authors recommended that Vietnam negotiate to reduce rule of origin restrictions, eliminate tariff and non-tariff barriers, and attract more FDI to enhance export efficiency.
Trung et al (2018) utilized the Stochastic Frontier Gravity Model (SFGM) to assess the impact of the ASEAN–India Free Trade Agreement (AIFTA) and the ASEAN–China Free Trade Agreement (ACFTA) on Vietnam's bilateral trade and trade efficiency, analyzing data from 2000 to 2015 Their model incorporated various factors, including Vietnam's GDP, partner countries' total expenditure, the weighted distance between Vietnam and its partners, and both time-invariant and time-varying dummy variables related to trade characteristics The study found that Vietnam's trade efficiency was relatively low, with export efficiency 15% higher than import efficiency Notably, Vietnam's accession to the WTO led to a decline in trade efficiency, with export efficiency decreasing from 47.4% to 46.3% and import efficiency from 33.8% to 32.6% While most ASEAN FTAs negatively impacted Vietnam's trade efficiency, AIFTA positively influenced bilateral trade flows, whereas ACFTA significantly reduced Vietnam's exports without affecting imports.
Research on trade potential, trade efficiency, and export efficiency by sector
Ahsan & Chu (2014) utilized a stochastic frontier gravity model to assess the potential and limitations of Bangladesh's environmental goods and services (EGs) exports, analyzing cross-sectional data from 41 key importers across six regions from 2001 to 2007 Their study incorporated variables such as GDP, trading partner population, geographical distance, exchange rates, EG import tariffs, and FTAs, revealing untapped export potential for Bangladesh among all surveyed partners In 2001, Bangladesh's highest export performance was with the UK at 77.96%, followed by Spain (61%) and the Netherlands (42.72%), but by 2007, UK exports plummeted to 28.03% The Netherlands, Spain, and Greece emerged as the top three countries for export efficiency in 2007, while Denmark (1.14%) and Portugal (8.08%) exhibited the lowest efficiencies The authors attributed the low export efficiency to "behind the border" factors but were unable to pinpoint specific constraints due to data limitations.
“implicit beyond the border” constraints helped Bangladesh increase its export of EGs
Atif et al (2017) conducted an evaluation of Pakistan's agricultural export potential using a stochastic frontier gravity model, analyzing data from 1995 to 2014 across 63 trading partners Their model incorporated key factors such as the GDP of both exporter and importer, geographical distance, and various time-invariant and time-varying variables, including dummy variables for shared borders, common language, colonial ties, average tariffs, bilateral exchange rates, and preferred trade agreements The study segmented the analysis period into four distinct intervals to enhance the evaluation.
Between 1995 and 2014, Pakistan's average export efficiency with various trading partners declined, indicating that the country has not achieved optimal export performance Notably, during the period from 1995 to 1999, the Netherlands led in exporting agricultural goods from Pakistan, with an efficiency rate of 16.37% However, this figure steadily decreased to 14.27%, 12.31%, and 10.50% in the following periods Similar trends were observed in Pakistan's export efficiency with other EU countries, including Belgium, Denmark, France, Germany, Italy, Spain, and the UK, highlighting the significant export potential Pakistan holds within the EU market.
Zaman and Kalirajan (2019) explored the export performance of primary and renewable energy sectors across 20 countries in South, Southeast, and East Asia from 2006 onwards Their research emphasizes the potential for enhancing this performance through increased intraregional trade.
In 2016, researchers utilized a stochastic frontier gravity model to analyze trade dynamics, incorporating key factors such as the GDP of both the importer and exporter, geographical distance, tariffs imposed by the importer, the cross exchange rate between the two countries, and a dummy variable for regional trade agreements (RTAs) as explanatory variables.
To assess factors influencing export efficiency, the authors developed a comprehensive export efficiency model incorporating variables related to institutional quality, infrastructure quality, market efficiency, and technological readiness for both exporters and importers The findings indicated that the stochastic frontier gravity model was unsuitable for certain countries, specifically Cambodia and Laos, leading to their exclusion from further analysis The overall average export efficiency for primary energy and renewable energy products in the region was found to be 56.5% and 63.1%, respectively Furthermore, the study revealed that institutional quality, infrastructure quality, market efficiency, and technological readiness positively affected export efficiencies across nearly all examined countries.
Nguyen (2020) utilized a stochastic frontier gravity model to analyze the factors influencing Vietnam's rice and coffee exports, as well as the overall export performance of these agricultural products The study was based on a dataset covering the years 2000 to 2018, with key independent variables including the GDP of both Vietnam and its trading partners, as well as population metrics.
Vietnam's export performance for rice and coffee has been relatively low across most trading partners, with notable exceptions being China, Hong Kong, and Algeria Despite the EU being a major export market for these commodities, a significant gap exists between potential and actual exports, with average efficiencies of only 0.2 for rice and 0.25 for coffee Notably, coffee exports to Germany (0.47), Spain (0.43), Italy (0.37), and Belgium (0.36) showed the highest efficiencies, while the Netherlands lagged at 0.13 "Behind-the-border" constraints have hindered Vietnam's ability to achieve optimal export levels, although specific limitations could not be identified due to data shortages.
Nguyen & Wu (2020) analyzed the export efficiency of Vietnam's 11 major exporting products, including agricultural goods, textiles, leather, footwear, and electrical equipment, using a 1-step estimation method While there was an upward trend in the export efficiency of these products, it remained lower than the overall aggregated export efficiency At a disaggregated level, Vietnam's focus on specific markets was evident, particularly in textiles, leather, and footwear, where export efficiency fluctuated from 43.03% in 1996 to 42.89% in 2010, before rising to 44.65% in 2014 The authors emphasized that enhancing governance, engaging in more Regional Trade Agreements (RTAs), and negotiating tariff reductions could significantly boost Vietnam's export efficiencies and the actual export value of its key products.
Research gap
Numerous researchers have explored trade potential, trade efficiency, and export efficiency at both aggregated and disaggregated levels, employing various methodologies such as conventional gravity models and stochastic frontier gravity models Despite this extensive research landscape, studies specifically focusing on Vietnam's export efficiency remain scarce, with existing publications primarily addressing broader export trends.
Research on Vietnam's export efficiency reveals varied results, with only two studies focusing on specific products: rice and coffee (Nguyen, 2020), and 11 major exporting products (Nguyen & Wu, 2020) While some studies suggest that Vietnam's export efficiency is relatively low (Nguyen & Doan, 2017; Doan & Xing, 2018; Nguyen, 2020), others indicate that the country demonstrates high export efficiency, particularly with several large trading partners (Nguyen & Wu, 2020).
Recent studies have identified key determinants of export efficiency, as summarized in Table 2.1 However, many current research efforts utilize a two-step approach, which can result in inaccurate estimations To address this issue, this research employs a one-step estimation of the stochastic frontier gravity model to assess the export efficiency of Vietnam's garment and textile industry to EU countries and to identify the factors influencing this efficiency.
Table 2.1: Summary of research on identifying determinants of export efficiency
Restrictiveness of rule of origin Doan & Xing (2018) -
Tariff by importer Drysdale et al (2000), Nguyen &
Doan (2017), Doan & Xing (2018), Nguyen & Wu (2020)
Non-tariff barrier by importer Doan & Xing (2018) - / +
FDI from importer Doan & Xing (2018) +
FTA Drysdale et al (2000), Roperto &
1 Details on the disadvantages of two-step approach can be seen in section 3.1 Stochastic frontier gravity model h
Trade freedom index Roperto & Edgardo (2014), Doan
Economic freedom of exporter Drysdale et al (2000), Nguyen &
Exchange rate of exporter Nguyen & Doan (2017) -
Cost of importing not significant
Business freedom index of importer not significant
Investment freedom index of importer not significant
Freedom of corruption of importer
Fiscal freedom index of importer not significant
Labor freedom index of importer
Monetary freedom index of importer not significant
Financial freedom index of importer not significant
Quality of institution of both exporter and importer
Quality of infrastructure of both exporter and importer
Level of good market efficiency of both exporter and importer
State of technological readiness of both exporter and importer
World governance indicator of both exporter and importer
METHODOLOGY
Stochastic frontier gravity model
The stochastic gravity model can be defined as:
X ijt = f(Y ijt ; β)exp(vijt – uijt)
X ijt : Actual export of country i to country j at time t
f(Y ijt ; β): Function of factors determining the export potential Y ijt
v ijt : Double-sided or statistical error term, which is assumed to follow a normal distribution with 𝑁 (0, 𝜎 v 2 )
u ijt : Single-sided error term or export inefficiency, capturing man-made constraints or country-specific factors v ijt and u ijt are independent
Battese and Coelli (1995) propose that the inefficiency term \( u_{ijt} \) is independently distributed and adheres to a non-negative truncated normal distribution characterized by the parameters \( (z_{ijt} \delta, \sigma_u^2) \) This inefficiency term \( u_{ijt} \) is influenced by a range of explanatory variables To identify the factors affecting export inefficiency, the model is expressed as \( u_{ijt} = z_{ijt} \delta + w_{ijt} \).
z ijt : Explanatory variables, associated with export inefficiency of country i with country j at time t
w ijt : Error term, assumed to follow truncated normal distribution with 𝑁 (0, 𝜎 w 2 ) such that w ijt ≥ - z ijt δ
The second regression in the two-step approach for analyzing factors affecting export efficiency challenges the assumption of independent identical distribution (Battese & Coelli, 1995) Additionally, numerous scholars acknowledge that a two-step procedure may yield biased results due to potential misspecification in the first step (Wang & Schmidt, 2002) Consequently, this thesis employs a one-step estimation method developed by Battese & Coelli (1995).
Then, the export efficiency is calculated as ratio of actual to potential export:
Kalirajan (2008) highlights several advantages of the stochastic frontier model in trade analysis Firstly, the model effectively eliminates the bias associated with "economic distance," as this factor is encapsulated within the error term Secondly, by isolating the statistical error term, the model allows for a more accurate calculation of export efficiency and a better understanding of the factors influencing it Additionally, the stochastic frontier gravity model yields trade potential estimates that align closely with free trade scenarios, reflecting the upper limits of data from economies with minimal trade restrictions Lastly, this approach is grounded in robust theoretical frameworks relevant to trade policy.
The Maximum Likelihood Estimation (MLE) method is utilized for the simultaneous estimation of coefficients in models 3.1 and 3.2 To evaluate the impact of man-made resistance on export suitability within the SFGM framework, the parameter γ is introduced, ranging from 0 to 1 Acceptance of the null hypothesis that γ equals 0 indicates that 𝜎u² is also 0, suggesting that the variable uijt can be excluded due to its lack of influence.
The model discussed in equation (3.1) evolves into the conventional gravity model when the variable u ijt is incorporated A higher value of γ indicates a stronger influence of country-specific factors, thereby supporting the effectiveness of the stochastic frontier approach.
Expansion of model
Kalirajan & Singh (2008) classified factors influencing actual export flow into 3 main groups: Natural factors, export country factors (“behind the border” factors), import country factors (“beyond the border” factors)
Natural factors influencing demand and supply include variables such as GDP, GDP per capita, geographical distance, and the cultural and historical connections between two nations These elements serve as fundamental determinants in various gravity models.
"Behind the border" factors refer to country-specific elements that exporting nations can control, including institutional, political, and infrastructural conditions, which can significantly influence trade facilitation.
“Beyond the border” factors are country-specific factors of importing countries
"Beyond the border" encompasses both explicit and implicit factors affecting international trade Explicit factors include observable tariff and non-tariff barriers imposed by the importing country, which exporting nations can easily identify and quantify In contrast, implicit factors stem from the importing country's institutional, political, or infrastructural characteristics, making them challenging for exporting nations to observe and measure, and beyond their control.
This study employs a stochastic frontier gravity model to assess the export efficiency of Vietnam's textile and garment sector to EU countries, following the classification by Kalirajan & Singh (2008) The model is represented by the equation lnX jt = β 0 + β 1 lnY jt + β 2 lny jt + β 3 lnDIS j + β 4 COMMU j + β 5 LANDLK j + (v jt – u jt ).
X jt : Actual export value of textile and garment from Vietnam to country j at time t
Y jt : GDP of country j at time t
y jt : GDP per capita of country j at time t h
DIS j : Geographical distance between Vietnam and country j
COMMU j : Dummy variable which takes a value 1 if both countries are/were communist country and 0 otherwise
LANDLK j : Dummy variable which takes a value 1 if the importer is a landlocked country and 0 otherwise
v jt : Double-sided error-term which captures the effect of inadvertently omitted and unobservable variables
u jt : Single-sided error term which indicates export inefficiency
Independent variables in gravity models typically include GDP and GDP per capita, which indicate economic size and income levels Additionally, the geographical distance between Vietnam and its trading partners, along with a dummy variable for landlocked countries, highlights transportation costs Furthermore, cultural and historical ties serve to reduce transaction costs stemming from cultural differences.
This thesis analyzes the factors influencing export efficiency, highlighting the differing interpretations of the error term u jt among researchers Some economists argue that u jt is influenced solely by "behind the border" factors (Kalirajan & Singh, 2008; D D Nguyen, 2020), while others contend that it is affected by both "behind the border" and additional elements.
The concept of "beyond the border" significantly influences the non-negative error term in export efficiency models (Armstrong, 2015; Nguyen & Wu, 2020) My thesis supports the idea that maximum export potential is achieved only when both exporters and importers eliminate trade resistance Additionally, the policies of one trading partner can impact the other; for instance, a country may receive financial and non-financial support from a partner with superior infrastructure, enhancing its own infrastructure quality Thus, "across the border" factors, which reflect country-specific determinants for both exporters and importers, are essential for accurately modeling export efficiency However, the extent of one country's influence on another varies significantly.
A prevalent notion is that economies with higher GDP possess greater influence over others Consequently, the "across the border" factors represent a weighted average of both "behind the border" and "beyond the border" elements, with the weights determined by each country's share of the combined GDP of the two nations.
Armstrong (2007) identified key "across the border" factors influencing trade, including measurements of openness, governance, economic freedom, and competitiveness indicators, which significantly impact export efficiency (Baccini et al., 2017; Galle et al., 2017; Grossman et al., 2017) These indicators, referred to as trade facilitation factors, can either stimulate or hinder trade based on their quality Wilson et al (2003) proposed a framework for measuring trade facilitation, encompassing four main indicators: port efficiency, regulatory environment, customs environment, and e-commerce These are reflected in the Global Competitiveness Report as infrastructure quality, institutional strength, market efficiency, and technological readiness of trading nations Infrastructure quality assesses the efficacy of transportation modes, while institutional strength gauges policy transparency Market efficiency indicates competition levels and trade openness, and technological readiness highlights the role of digitalization in trade activities Additionally, Vietnam's macroeconomic factors and those of its trading partners, including the real effective exchange rate and trade policy variables like tariffs and FTAs, also influence trade dynamics However, since these trade policy factors are uniform across EU members and remain constant during the study period, they are excluded from the analysis, except for Croatia, which joined the EU in 2014.
The equation utilized to analyze the country-specific factors affecting the export efficiency of Vietnam's textile and garment industry to EU nations is represented as follows: u jt = δ 0 + δ 1 INSTW jt + δ 2 INFRW jt + δ 3 GMKEW jt + δ 4 TECHW jt + δ 5 ratio t + w jt (3.5) This model incorporates various elements, including institutional quality, infrastructure, market knowledge, technology, and other relevant ratios that collectively influence export performance.
INSTW jt : Weighted average of the strength of institution in Vietnam and country j at time t
INFRW jt : Weighted average of the quality of infrastructure in Vietnam and country j at time t
GMKEW jt : Weighted average of the level of the good market efficiency in Vietnam and country j at time t
TECHW jt : Weighted average of the state of technological adoption and readiness in Vietnam and country j at time t
ratio t : Ratio of the real effective exchange rate of country j at time t to the real effective exchange rate of Vietnam at time t
w jt : Normal statistical error term
Data description
Export value: All export data from Vietnam to trading partners are extracted from UN
Comtrade, a trade database from the United Nations Statistics Division (UNSD), is utilized in this thesis to analyze the textile and garment sector using 14 HS codes at the 2-digit level, specifically HS 50 to HS 63 The codes HS 50 to HS 60 pertain to textiles, while HS 61 to HS 63 relate to garments Detailed descriptions of each HS code can be found in the Appendix The study collects export data from 28 EU countries spanning the years 2007 to 2019, measuring bilateral export values.
US Dollars Nominal export value from UN Comtrade is converted to real value, using
US GDP deflator given by World Development Indicators of the World Bank
GDP and GDP per capita: Real GDP and real GDP per capita in constant 2010 US dollars by countries are collected from World Development Indicators of the World Bank
Geographical distance, measured in kilometers, is derived from the Centre d'Etudes Prospectives et d'Informations Internationales (CEPII) The calculation utilizes the latitudes and longitudes of Vietnam's capital city and its trading partners.
2 HS code: Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) is an international nomenclature for the classification of products h
30 distances based on the great circle formula which means that this distance is the minimum distance along the surface of the earth
Cultural and historical factors: Communist, and landlocked country dummy variables are taken from the EU‟s website and CEPII
Trade facilitation relies on data from the Global Competitiveness Report, published annually by the World Economic Forum, covering institutional strengths, infrastructure quality, goods market efficiency, and technological readiness from 2007 to 2019 A higher score indicates better performance To ensure comparability, values from 2007 to 2017, which were presented on a different scale than those from 2018 to 2019, were normalized to a consistent scale using a specific method.
The trade facilitation index (TFI) is normalized to a scale of 0-1, where the normalized value (x') is calculated from the actual TFI (x) using its minimum (x min) and maximum (x max) values Each indicator's score is derived as either a simple or weighted average of its sub-indicators, which primarily come from the Executive Opinion Survey conducted at the national level by World Economic Forum (WEF) partners This survey, held in the first quarter of each year, allows for the final score to reflect a weighted average of both the current and previous year's data.
The real effective exchange rate data for Vietnam and 28 EU members from 2007 to 2019 can be comprehensively sourced from Bruegel.org This dataset includes the CPI-based real effective exchange rate for Vietnam in relation to 171 trading partners during the same period Table 3.1 below provides a detailed description of the data utilized in this thesis.
Variable Obs Mean Std Dev Min Max lnX 364 16.50751 2.822219 0 20.54763 lnYi 364 26.10211 1.56559 22.84437 29.00331 lnyi 364 10.22928 0.632687 8.776132 11.62597 lnDIS 364 9.033411 0.09189 8.873682 9.263786
INSTW 364 0.5567502 0.107273 0.3964256 0.7866918 INFRW 364 0.6278813 0.151425 0.278434 0.9240967 GMKEW 364 0.5840087 0.053783 0.4933925 0.7151791 TECHW 364 0.6021192 0.127198 0.3743571 0.8664929 ratio 364 0.7813768 0.128665 0.5303222 1.024995
Source: Author‟s calculation based on data collection
The study analyzes 364 observations across various model variables, including export, GDP, GDP per capita, distance, and real effective exchange rate, all of which are transformed into logarithmic values While the independent variables are fully covered, there are three instances of zero observations for the dependent variable, which may indicate either unreported data or zero export Following the methodology of Pham et al (2014), this research treats all missing values as zero trade To address the issue of undefined logarithmic values for zero exports, these instances are replaced with one, ensuring the retention of maximum observations while avoiding data loss.
RESEARCH FINDINGS
Regression results
The Global Competitiveness Report reveals a significant positive correlation among four trade facilitation indicators, as shown in Table 4.1 of model 3.5 To mitigate multicollinearity issues, each variable will be regressed independently across four distinct models.
Table 4.1: Correlation between four trade facilitation indicators
By using STATA application version 15.1, the estimation results of one-step regression for Vietnam‟s textile and garment export to EU countries (2007–2019) is shown in the 4.2 table
Table 4.2: One-step estimation for Vietnam‟s textile and garment export to EU countries (2007–2019)
VARIABLES Model 1 Model 2 Model 3 Model 4
Note: Robust standard errors in parentheses
The high parameter γ values in the stochastic frontier gravity model confirm its effectiveness in explaining Vietnam's textile and garment exports to the EU The analysis reveals a significant positive correlation between the import demand in EU countries, as indicated by GDP and GDP per capita, and Vietnam's export performance Additionally, historical ties between Vietnam and former communist countries in the EU further enhance export opportunities However, while geographical distance increases transportation costs and risks, negatively impacting export activities, model 3 indicates that distance (lnDIS) has an insignificant effect on export flow Furthermore, Vietnam's landlocked status does not significantly influence its exports to EU nations.
Impact of institution on export efficiency of Vietnam‟s textile and garment to
Table 4.2 indicates that institutions have a negative impact on the export inefficiency of Vietnam's textile and garment industry to EU countries, with a statistical significance at the 10 percent level This suggests a positive correlation between strong institutions and export efficiency Enhanced institutional frameworks promote transparency in policymaking, ensure effective governance, and minimize trading uncertainties, ultimately improving export performance (Schwab, 2017).
Impact of infrastructure on export efficiency of Vietnam‟s textile and garment
The infrastructure quality in Vietnam significantly impacts the export efficiency of its textile and garment industry to EU countries A robust infrastructure system enhances export performance, as high-quality roads, railways, seaports, and airports streamline both domestic and international goods transportation This improvement reduces risks and minimizes delivery times, ultimately fostering better trade relations and efficiency in exports.
Impact of goods market efficiency on export efficiency of Vietnam‟s textile and
The efficiency of the goods market significantly reduces export inefficiency in Vietnam's textile and garment sector when trading with EU countries An efficient goods market enhances export efficiency by fostering healthy market competition and ensuring fair treatment of imported goods Additionally, it reflects a high degree of trade openness, facilitating easier entry and exit of products, ultimately contributing to improved export performance (Schwab, 2017).
Impact of technology readiness on export efficiency of Vietnam‟s textile and
The infrastructure quality significantly impacts the export efficiency of Vietnam's textile and garment sector to EU countries Improved infrastructure, including high-quality roads, railways, seaports, and airports, enhances both domestic and international transportation, ultimately reducing delivery risks and time This correlation underscores the importance of investing in robust infrastructure to boost export performance in the textile and garment industry.
4.4 Impact of goods market efficiency on export efficiency of Vietnam’s textile and garment to EU countries
The efficiency of the goods market negatively affects the export inefficiency of Vietnam's textile and garment industry to EU countries This suggests that a more efficient goods market enhances export efficiency, as exporters are more inclined to engage with countries exhibiting healthy market competition and fair treatment of imported goods Additionally, a well-functioning goods market signifies greater trade openness, facilitating the easier entry and exit of products, which ultimately contributes to improved export efficiency (Schwab, 2017).
4.5 Impact of technology readiness on export efficiency of Vietnam’s textile and garment to EU countries
Technological adoption plays a crucial role in influencing the export efficiency of Vietnam's textile and garment industry to EU countries, with a notable negative impact The integration of advanced information and communication technologies (ICTs) in trade operations facilitates faster information exchange between importers and exporters, thereby enhancing overall trade efficiency.
36 exporters, minimize transaction costs (Schwab, 2017) As a result, export efficiency will be enhanced.
Export efficiency of Vietnam‟s textile and garment to EU countries
The inefficiency term derived from one-step estimation will be utilized to assess the export efficiency of Vietnam's textile and garment industry, based on equation (3.3) for each EU partner annually Results are presented in tables A2, A3, A4, and A5, with export efficiency scores ranging from 0 to 1, where a score of 1 indicates the full export potential has been realized Higher export efficiency scores signify improved export performance, while lower scores suggest reduced export potential and limited future growth opportunities This study categorizes export efficiency levels into five distinct groups, as detailed in table 4.3.
Table 4.3: Level of Export efficiency
Export efficiency score Efficiency level
0 < XE < 0.3 Low efficiency 0.3 ≤ XE < 0.6 Average efficiency 0.6 ≤ XE < 0.1 High efficiency
Between 2007 and 2019, Vietnam's textile and garment exports to EU countries demonstrated a mean export efficiency ranging from 0.4754 to 0.4919, indicating an average performance level This efficiency suggests that Vietnam is currently realizing nearly half of its maximum export potential, highlighting significant opportunities for growth in actual export volumes.
Future projections for Vietnam's textile and garment exports to the EU indicate a significant shift from previous findings Nguyen & Doan (2017) reported a low mean export efficiency of approximately 0.2121 in 2015, while Doan & Xing (2018) noted that Vietnam realized only about one-third of its export potential to the EU from 1995 to 2013 Similarly, Nguyen (2020) found that the export efficiencies for Vietnam's rice and coffee to the EU were around 0.2 and 0.25, respectively These discrepancies may stem from the varying data sets and periods analyzed by these researchers, as well as differences in estimation methods; while previous studies employed two-step estimations, I utilized a one-step approach My findings align more closely with Nguyen & Wu (2020), who reported an aggregated export efficiency of roughly 0.48 for Vietnam from 1996 to 2014, with textile, leather, and footwear exports achieving about 0.414 efficiency.
This thesis aligns with the findings of Trung et al (2018), which reported that Vietnam's average trade efficiency was 0.463 from 2007 to 2015 However, they noted that this figure was lower than the mean trade efficiency recorded from 2000 to 2006.
2007 In other words, Vietnam‟s trade efficiency has reduced after joining WTO Nguyen (2020) confirmed this conclusion in his research
The analysis presented in tables A2, A3, A4, and A5 of this thesis reveals a notable upward trend in the export efficiencies of Vietnam's textile and garment industry to EU countries, aligning with the findings of Nguyen & Wu (2020) The yearly mean export efficiencies, referred to as Mean1, indicate that the lowest performance occurred in 2007, placing Vietnam in the lower average efficiency group However, over the subsequent twenty years, these efficiencies have significantly improved, allowing Vietnam's textile and garment exports to transition into the upper average efficiency group.
Vietnam's textile and garment exports to EU countries demonstrate varying levels of efficiency, with high efficiency reported for 9 countries, average efficiency for 13 countries, and low efficiency for 6 countries The detailed classification of export efficiency by country is outlined below.
- Low efficiency trading partners: Cyprus, Ireland, Lithuania, Malta, Portugal, Slovenia h
- Average efficiency trading partners: Austria, Croatia, Czechia, Estonia, Finland, France, Greece, Hungary, Italy, Latvia, Poland, Romania, Slovakia
- High efficiency trading partners: Belgium, Bulgaria, Denmark, Germany, Luxembourg, the Netherlands, Spain Sweden, the UK
Belgium leads in export efficiencies, followed by the Netherlands and Germany, with bilateral export efficiencies in textile and garment trade with Vietnam exceeding 0.7267 In contrast, Portugal has the lowest efficiency at 0.1247, with Lithuania and Malta also falling below 0.2 These findings align with previous studies discussed in the literature review.
CONCLUSION
Research summary
This thesis aims to calculate the export efficiency of Vietnam's textile and garment to
28 EU countries and identify its determinants over the 2007 – 2019 period I apply one-step estimation of the stochastic frontier gravity model to achieve these research purposes
This thesis examines the determinants of export efficiency in Vietnam's textile and garment sector, focusing on four key trade facilitation indicators from the Global Competitiveness Report: institutional strength, infrastructure quality, market efficiency, and technological readiness The analysis reveals a strong positive correlation among these indicators, leading to their individual inclusion in the regression model The findings indicate that each of these factors significantly enhances the export efficiency of Vietnam's textile and garment products to EU countries.
Since I use four separate models to estimate, four mean export efficiencies are computed from the SFGMs Overall, the mean export efficiency of Vietnam's textile and garment to EU countries is in the average efficiency group Mean export efficiencies for models with institution, infrastructure, goods market efficiency, and technological adoption and readiness are 0.4794, 0.4919, 0.4754, and 0.4854 respectively This means that if export efficiency is improved, there will be great room for Vietnam to increase actual export of textile and garment to EU countries in the future In addition, in spite of slight fluctuation, the 2007 – 2019 period sees an overall upward trend in score of export efficiency of Vietnam's textile and garment to EU countries Belgium, the Netherlands, and Germany are countries with the highest export efficiencies with Vietnam, achieving at high efficiency level Meanwhile, the lowest export efficiencies are recorded in Portugal, Lithuania, and Malta with the values in the low efficiency group.
Policy implication
Only a half of Vietnam‟s export potential to EU countries has been realized Therefore, Vietnam should continue exporting textile and garment to high export efficiency h
40 trading partners while finding more opportunities to promote actual export of these products to importers with lower export efficiencies
The study reveals that Vietnam's textile and garment export efficiency to EU countries is significantly influenced by institutional strength, infrastructure quality, market efficiency, and technological readiness Enhancing these trade facilitation indicators is essential for improving export efficiency Collaboration between Vietnam and its trading partners is crucial for creating a better trade facilitation environment Additionally, Vietnam can learn from EU member states that already possess effective trade facilitation systems.
Limitation of the study
There are a few limitations of this thesis that can be improved in further research:
This thesis focuses on the export efficiency of Vietnam's textile and garment industry to EU countries, intentionally excluding the analysis of tariffs, non-tariff barriers, and trade agreements The rationale behind this decision is that these factors have remained relatively constant throughout the survey period, thus not significantly impacting the results.
The research focuses solely on the EU market, overlooking the influence of third countries on Vietnam's textile and garment exports Vietnam exports to a diverse range of countries beyond the EU, suggesting that the characteristics of non-EU markets could significantly affect Vietnam's export performance and efficiency in the EU textile and garment sector.
The thesis examines "across-the-border" factors that reflect the traits of Vietnam and its trading partners, highlighting a key limitation in isolating the effects of Vietnamese policy on the export efficiency of its textile and garment industry to EU countries Nevertheless, enhancing trade facilitation indicators could significantly boost Vietnam's export performance.
"behind-the-border" constraints, “across-the-border” factors also will be affected As a result, the export efficiency of Vietnam's textile and garment to EU countries will be enhanced h
Future research should extend the analysis period to better understand the effects of tariffs, non-tariff barriers, and trade agreements Since the EVFTA came into effect in 2020, it provides various tariff preferences and imposes stricter rules of origin for Vietnam Therefore, further studies are recommended to assess the impact of this free trade agreement on the export efficiency of Vietnam's textile and garment industry to EU countries.
This study utilizes trade facilitation indicators from the World Economic Forum's Global Competitiveness Reports to highlight country-specific factors These factors can also be represented through various variables, including the World Governance Indicators and components of the Economic Freedom Index Additionally, future research may explore trade facilitation indicators from alternative sources such as the Global Enabling Trade Report by WEF, the World Bank's Trading Across Borders report, or the UN Global Survey on Trade Facilitation and Paperless Trade Implementation.
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Table A1: Description of HS code
51 Wool, fine or coarse animal hair, horsehair yarn and woven fabric
53 Other vegetable textile fibres, paper yarn and woven fabrics of paper yarn
56 Wadding, felt and nonwovens, special yarns, twine, cordage, ropes and cables and articles thereof
57 Carpets and other textile floor coverings
58 Special woven fabrics, tufted textile fabrics, lace, tapes- tries, trimmings, embroidery
59 Impregnated, coated, covered or laminated textile fabrics, textile articles of a kind suitable for industrial use
61 Articles of apparel and clothing accessories, knitted or crocheted
62 Articles of apparel and clothing accessories, not knitted or crocheted
63 Other made up textile articles, sets, worn clothing and worn textile articles, rags (Source: General Department of Vietnam Customs h
Table A2: Export efficiency of Vietnam textile and garment to EU countries, 2007 – 2019 (model with institution)
Table A3: Export efficiency of Vietnam textile and garment to EU countries, 2007 – 2019 (model with infrastructure)
Table A4: Export efficiency of Vietnam textile and garment to EU countries, 2007 – 2019 (model with goods market efficiency)
Table A5: Export efficiency of Vietnam textile and garment to EU countries, 2007 – 2019 (model with technology adoption)