Essay About Vietnam Textile And Apparel Industry

Vietnam Textile and Apparel Industry
[pic 1]School of Marketing and International BusinessIBUS 201 PRINCIPLES OF INTERNATIONAL BUSINESSTrimester 2- 2015ASSIGNMENT 1Essay title: Vietnam textile and apparel industryName: Nguyen Huynh NganStudent ID: 300322810Lecturer’s Name: Mr. Nguyen Huu LocWord count: 1595 wordsAbstract:Globalization is a phenomenon which has opened many opportunities for the economies of developing countries to develop even though it also has drawbacks. For over a decade, in terms of garment and textile industry, Vietnam has been an important textile exporter to the United State (US), European Union and Japan due to the globalization. Based on search of online information and providing trade data, this paper will explain briefly globalization and give a short introduction of Vietnam’s textile industry. Next, it demonstrates the development of this industry by using actual data and analyzes opportunities and challenges for the industry as a consequence of globalization. Finally, it will come up with some implications and recommendations for firms in the industry. Globalization and its impact on textile industry of Vietnam.Globalization refers to a process of gradual integration and interaction with other countries. It creates the interconnectedness of different national economies, whereby the world is considered as a unified marketplace. International business transactions are aided by information technology. Moreover, firms could reduce their production cost and decline trade barriers by standardizing products and services, the growth of multinational corporations and searching for foreign locations with cheap labor to locate their factories. In relation to the textile industry, after joining World Trade Organization (WTO) in 2007, Vietnam will has many opportunities and it is more active in a process of overseas market development, especially decreasing the pressure from foreign suppliers of raw materials and increasing competition power of products through pricing strategy. However, Vietnam has to face with many challenges due to the fact that import tariffs and subsidies of foreign producers will be decreased according to WTO accession rules (Tumbarello, 2007). Analysis of textile industry in Vietnam.2.1. IntroductionTextile and garment industry of Vietnam plays an important role in the economy of country. It is also one of the most essential export sectors of Vietnam. Its products are exported to more than 50 countries all over the world, and the US is the major market of Vietnamese textile products (Vietnam-briefing, 2014). The textile and apparel industry is regarded as a main source of industrial employment, with 2,500 firms and 2 million employees, especially for women, whereby it is the industry leader for industrialization (Vietrade, 2014).