A Comparative Study of the Trade Barriers in Vietnam and Thailand

A Comparative Study of the Trade Barriers in Vietnam and Thailand

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 studys 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, Vietnams 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.

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 studys 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, Vietnams 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.