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. 2015 Oct 12:11:41.
doi: 10.1186/s12992-015-0127-7.

The role of trade and investment liberalization in the sugar-sweetened carbonated beverages market: a natural experiment contrasting Vietnam and the Philippines

Ashley Schram  1 , Ronald Labonte  2 , Phillip Baker  3 , Sharon Friel  4 , Aaron Reeves  5 , David Stuckler  6
Affiliations

The role of trade and investment liberalization in the sugar-sweetened carbonated beverages market: a natural experiment contrasting Vietnam and the Philippines

Ashley Schram et al. Global Health. .

Abstract

Background: Trade and investment liberalization may facilitate the spread of sugar-sweetened carbonated beverages (SSCBs), products associated with increased risk factors for obesity, type II diabetes, and cardiovascular diseases (Circulation 121:1356-1364, 2010). Apart from a limited set of comparative cross-national studies, the majority of analyses linking liberalization and the food environment have drawn on case studies and descriptive accounts. The current failure of many countries to reverse the obesity epidemic calls for investigation into both individual and systemic factors, including trade and investment policies.

Methods: Using a natural experimental design we tested whether Vietnam's removal of restrictions on foreign direct investment (FDI) subsequent to its accession to the World Trade Organization in 2007 increased sales of SSCBs compared with a matched country, the Philippines, which acceded in 1995. Difference-in-difference (DID) models were used to test pre/post differences in total SSCB sales and foreign company penetration covering the years 1999-2013.

Results: Following Vietnam's removal of restrictions on FDI, the growth rate of SSCB sales increased to 12.1 % per capita per year from a prior growth rate of 3.3 %. SSCB sales per capita rose significantly faster pre- and post-intervention in Vietnam compared with the control country the Philippines (DID: 4.6 L per annum, 95 % CI: 3.8 to 5.4 L, p < 0.008). Vietnam's increase in SSCBs was primarily attributable to products manufactured by foreign companies, whose annual sales growth rates rose from 6.7 to 23.1 %, again unmatched within the Philippines over this period (DID: 12.3 %, 95 % CI: 8.6 to 16.0 %, p < 0.049).

Conclusions: Growth of SSCB sales in Vietnam, led by foreign-owned companies, significantly accelerated after trade and investment liberalization.

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Figures

Fig. 1
Fig. 1
Trends in FDI Inflows in Vietnam and the Philippines before and after Vietnam’s 2007 WTO accession
Fig. 2
Fig. 2
Trends in SSCB sales in Vietnam and the Philippines before and after Vietnam’s expanded liberalization commitments
Fig. 3
Fig. 3
Trends in SSCB and unprocessed food sales in Vietnam and the Philippines, before and after Vietnam’s expanded liberalization commitments
Fig. 4
Fig. 4
Trends in Foreign SSCB sales in Vietnam and the Philippines, before and after Vietnam’s expanded liberalization commitments
Fig. 5
Fig. 5
Trends in foreign and domestic SSCB Sales in Vietnam and the Philippines, before and after Vietnam’s expanded liberalization commitments
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