Unveiling Vietnam's trade dynamics: The perspective of virtual water on agricultural products trade for sustainable water resource management

Abstract

Economic globalization influences the trade of agriculture products worldwide, creating complex interdependencies in trade flows and virtual water flows. Virtual water trade is an integral part of global water resource management that offers a framework to address water scarcity and ensure sustainable development. This study aims to unveil global trade dynamics from the perspective of virtual water on agricultural products trade, with the objective of providing policies for sustainable water resource management. Using the water footprint network method, it calculates virtual water flows based on green, blue, and grey water footprints. Additionally, the study assesses virtual water trading partnerships by analyzing two key indicators: net import and water abundance. Through a case study on relationship trade between Vietnam and major partners including the United States, China and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) associated with agricultural products, the findings show a country can role as both a supplier and consumer of virtual water. Between 2010 and 2021, total imports amounted to 90 billion m³, while virtual water exports reached 149 billion m³. The United States stands as Vietnam's largest virtual water surplus partner with a net import volume of 22.37 billion m³, whereas China is the largest virtual water deficit partner with a net import volume of approximately −87.05 billion m³. Exports of Vietnam's green water to China are staggeringly high, at 24 times the volume sent to the US. However, a deficit in grey water, primarily with China, constitutes 67.2 % of total grey water exports. Key agriculture food products such as milled rice (29.83 % of virtual water exports) and palm oil (17.37 % of virtual water imports) dominate these trade flows. Based on net virtual water flows imports and water regeneration potential, this research underscores the need for strategic adjustments in trade relations between countries to optimize water use and enhance sustainability in the global food supply chain.