Measure competitive advantages, critical product industry and some results of calculation for industrial processing products of Ho Chi Minh City

Abstract

The paper presents the criteria for measuring competitive advantages of products, and measuring main or key products according to methods of measuring domestic resource costs, calculating industial linkage coefficients based on the input-output table I-O. The study is to apply the calculation of domestic resource cost coefficients for a number of products of Ho Chi Minh City through timelines according to the roadmap to reduce import tax rates. The research results have shown that the product is highly protected (high import tax), the competitive advantage will be low, and vice versa. In addition, the calculation results of the industial linkage coefficients of industries and group of products show that the industries, products with high linkage coefficients attracting and promoting other products to develop are the same industries, products so-called the key or main industries in the development plan of Ho Chi Minh City. However, over time, the input costs of most of Ho Chi Minh City's industries tend to increase. Based on this result, the study also provides some policy implications for reducing input costs to improve the competitiveness of Ho Chi Minh City's industry products. The new contribution of the study is to calculate domestic resource costs based on the input cost coefficients (cost coefficient matrix) in the I-O table and supplement the criteria of the linkage coefficient (index of the power of dispersion) for the product industry which is called key.