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A Comparative Study of the Trade Barriers in Vietnam and Thailand

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  • Nguyen Khanh Doanh
  • Yoon Heo

Abstract

Although the issues of trade barriers have been discussed extensively in the existing economic literature, little evidence has been documented regarding the structures, characteristics, and trends of the trade barriers, including non-tariff barriers, in Vietnam and Thailand from a comparative perspective. This study analyzes how Vietnam and Thailand balance their needs to protect domestic industries and compliance with regional and multilateral commitments. This study's findings are summarized as follows: First, both Vietnam and Thailand have similar tariff structures based on products and their origins, although the tariff schedule of Thailand is more complex than that of Vietnam. Second, Vietnam's tariffs are more dispersed across the items than those of Thailand, due to the higher maximum tariff rate and percentage of tariff lines, ranging from 0–5 percent. Third, in terms of tariff escalation, the magnitude in Vietnam is higher than in Thailand. Fourth, the non-tariff structure of Thailand is more complex than that in Vietnam. Finally, when putting all the pieces of the complex web of trade distortions together, it appears both countries give more protection to the agricultural sector than non-agricultural sectors, but the intensity of protection in Vietnam is higher than in Thailand.

Suggested Citation

  • Nguyen Khanh Doanh & Yoon Heo, 2007. "A Comparative Study of the Trade Barriers in Vietnam and Thailand," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 10(1), pages 239-266, March.
    • Handle: RePEc:sae:intare:v:10:y:2007:i:1:p:239-266
    DOI: 10.1177/223386590701000113
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    References listed on IDEAS

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    1. Auffret, Phillipe, 2003. "Trade reform in Vietnam : opportunities with emerging challenges," Policy Research Working Paper Series 3076, The World Bank.
    2. Yoko Sazanami & Shujiro Urata & Hiroki Kawai, 1995. "Measuring the Costs of Protection in Japan," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 32, January.
    3. International Monetary Fund, 2006. "Vietnam: Statistical Appendix," IMF Staff Country Reports 2006/052, International Monetary Fund.
    4. International Monetary Fund, 2003. "Vietnam: Statistical Appendix," IMF Staff Country Reports 2003/382, International Monetary Fund.
    5. Sam Laird & Alexander Yeats, 1990. "Quantitative Methods for Trade-Barrier Analysis," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-11141-1, October.
    6. International Monetary Fund, 2003. "Thailand: Statistical Appendix," IMF Staff Country Reports 2003/388, International Monetary Fund.
    7. Prema‐chandra Athukorala, 2006. "Trade Policy Reforms and the Structure of Protection in Vietnam," The World Economy, Wiley Blackwell, vol. 29(2), pages 161-187, February.
    8. Ray, Edward John & Marvel, Howard P, 1984. "The Pattern of Protection in the Industrialized World," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 452-458, August.
    9. International Monetary Fund, 2006. "Vietnam; Statistical Appendix," IMF Staff Country Reports 06/423, International Monetary Fund.
    10. International Monetary Fund, 2006. "Vietnam: Statistical Appendix," IMF Staff Country Reports 2006/423, International Monetary Fund.
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    Cited by:

    1. Liwen Ma & Mohsin Ali, 2024. "Bilateral trade between China and ASEAN countries before and during COVID‐19 using a comparative analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(3), pages 1880-1895, April.

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