Analysis of Factors Impacting Vietnam’s Agricultural Export to the EU Countries

Thi Anh Tuyet Le, Vinh Long Hoang, Thi Anh Linh Pham


This research uses a gravity model combined with panel data to analyze the factors influencing Vietnam’s agricultural exports to the European Union (EU) countries. Based on the estimated results, the authors propose several policy recommendations for the Vietnamese government and businesses in enhancing Vietnam’s agricultural export in particular and promoting export in general. The data included in the study are collected in a tabular form, so the article uses the fixed effects model (FEM), random effects model (REM), and ordinary least squares (OLS) to determine the impact of factors on international trade flows between Vietnam and the EU countries in agricultural export. The estimated results indicate that geographical distance, exchange rates, and economic disparity positively impact Vietnam’s agricultural export activities to the EU member countries. Conversely, trade openness hurts Vietnam’s agricultural exports. The research also considers the impact of the EU-Vietnam Free Trade Agreement (EVFTA) on Vietnam’s agricultural exports to the EU. However, the estimation results show that the EVFTA factor positively affects export activities but lacks statistical significance in the model. Based on the research results of this article, the agency managing Vietnam’s agricultural export activities will make more appropriate management policy adjustments. At the same time, the recommendations in the article are also very necessary for Vietnamese farmers in the context of international economic integration. By including the variable implementing the EVFTA into the research model as a dummy variable, the results of this study will provide new perspectives on agricultural export activities in general as well as exporting agricultural products to a specific EU market.


Keywords: gravity models, export of agricultural products, the EU market, Vietnam.



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