Competitiveness and Factors Affecting Thai Rice Exports during 2007–2023: An Analysis using the Diamond Model Framework

Abstract

This article aimed to (1) examine Thailand’s competitiveness in rice exports by comparing it with Vietnam, and (2) analyze the factors affecting the volume of Thai rice exports to the global market and China. This study employs a mixed-methods approach. The analysis of export competitiveness is based on Porter’s Diamond Model framework, while the factors influencing Thai rice export volumes are assessed using a multiple linear regression model via the Prais-Winsten AR(1) technique, with secondary quarterly time series data from Q1 2007 to Q4 2023. The study examines Thailand’s competitiveness in rice exports by comparing it with Vietnam. The findings indicate that Thailand holds competitive advantages in financial costs, transportation and logistics infrastructure, and rice production technology. Thailand also successfully leveraged the suspension of India’s rice exports to expand its market share. On the other hand, Vietnam has advantages in labor both in terms of quantity and lower costs higher productivity per unit area, advances in rice breeding, and a proactive government role in negotiating free trade agreements (FTAs). In addition, the study also investigates factors influencing the volume of Thai rice exports to the global market and to China. The results show that Thailand’s rice production index has a positive effect on the volume of rice exports to both the global market and China. Moreover, global gross domestic product (GDP) positively affects Thailand’s rice export volume to the global market. These findings highlight the importance of improving production efficiency as a key strategy to enhance Thailand’s rice export competitiveness.