DETERMINANTS OF GREEN PRODUCT EXPORTS IN VIETNAM: DO IMPORTERS’ CHARACTERISTICS MATTER?

Abstract

This study examines the factors influencing Vietnam’s green product exports, with a particular emphasis on the characteristics of its
trading partners. Adopting the Poisson pseudomaximum likelihood estimations for a gravity model, the study analyzes bilateral green exports from Vietnam to 169 partners from 2002 to 2022. The empirical evidence demonstrates that exchange rate fluctuations and geographical distance hinder exports, whereas free trade agreements and historical dependencies foster exports. Additionally, the study reveals that GDP per capita, population, human development, tax burden, and financial freedom among importing countries are key factors in promoting Vietnam’s green exports. The results imply that promoting Vietnam’s green exports requires stable exchange
rates and active engagement in free trade agreements. In addition, Vietnamese exporting firms seeking to increase green exports should target countries with high GDP per capita, significant economic size, advanced human development, heavy tax burden, and well-liberalized financial systems, as well as those with a shared history of interdependence with Vietnam.