Solutions to develop business opportunities for Vietnam's textile and garment industry in the current financial crisis - 1

FOREIGN TRADE UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

MASTER OF INTERNATIONAL BUSINESS

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Topic:

GRADUATION THESIS

Solutions to develop business opportunities for Vietnam's textile and garment industry in the context of the global financial crisis

Student name: Nguyen Thi Ngoc Bich Class: English 4

Course 44

Instructor: Master Nguyen Van Minh

Hanoi - November 2009

ACKNOWLEDGEMENTS

First of all, the author would like to express his sincere thanks to Dr. Nguyen Van Minh, who, despite being very busy with his professional work, has enthusiastically guided the author to complete his thesis.

The author would also like to thank all the teachers of Foreign Trade University in general and the teachers in the Faculty of Business Administration in particular, who have imparted knowledge that has created the basis for the author to carry out the thesis.

Finally, the author would like to thank his family and friends for their encouragement and help in completing the thesis.

Thank you very much!

Hanoi, date … month … year 2009

Author

Nguyen Thi Bich Ngoc

LIST OF FIGURES, TABLES, AND GRAPHICS

IMAGE

Figure 1: Flowchart of research implementation 2

Figure 1.2: Sources of business opportunities 8

Figure 1.3: Business opportunities from customers 9

Figure 1.5: Michael Porter's five competitive forces model 19

Figure 1.6: Diamond model of national competitive advantage 19

Figure 1.7: Michael Porter's value chain 20

Figure 1.8: Locating business opportunities for enterprises on matrix 22

Figure 2.9: World commodity price developments 32

Figure 2.10: Textile and garment production cluster in Vietnam 63

BOARD

Table 1.1: Table of assessing the competitiveness of enterprises 21

Table 1.2: Table of assessing the attractiveness of opportunities 22

Table 2.3: Vietnam's textile and garment exports over the years 25

Table 2.4: The world's leading clothing exporting countries in 2007 26

Table 2.5: Foreign investment in textile industry by year 27

Table 2.6: Import of textile and garment raw materials over the years 54

Table 2.7: Main countries exporting textile and garment materials to Vietnam in 2008 54

Table 2.8: Vietnam's population and age group proportions in the population by the end of 2007 59

Table 2.9: Wages in the textile industry through the 1960s

Table 2.10: Assessment of competitiveness of Vietnamese textile and garment enterprise groups 73

Table 2.11: Assessing the attractiveness of market opportunity groups 75

Table 2.12: Assessment of the attractiveness of investment opportunity groups 75

Table 13: Vietnam's textile and garment development goals to 2010, orientation to 2020

................................................................ ................................................................ ..............................80

TABLE

Chart 2.1: Vietnam's textile and garment exports over the years 25

Chart 2.2: Vietnam's main export markets 27

Chart 2.3: Textile and garment exports to the US over the years 46

Chart 2.5: Comparison of wages in the textile industry in some countries 60

LIST OF VIETNAMESE – ENGLISH ABBREVIATIONS

VIETNAMESE

CP	Share
Ltd.	Limited liability
DN	Business
ENGLISH
APEC	Asia-Pacific Economic Cooperation	Asia-Pacific Economic Cooperation Forum
ASEAN	Association of Southeast Asia Nations	Association of Southeast Asian Nations
CPSC	Consumer Product Safety Commission	United States Consumer Product Safety Commission
ESCAP	United Nations Economic and Social Commission for Asia and the Pacific	United Nations Economic and Social Commission for Asia and the Pacific
AGOA	African Growth and Opportunity Act	African Growth and Development Act
EIU	Economist Intelligence Unit	Economist Intelligence Unit (EIU) of the Economist Magazine (UK)
FAO	Food and Agriculture Organization of the United Nations	Food and Agriculture Organization of the United Nations
EU	European Union	European Union
IMF	International Monetary Fund	International Monetary Fund
WTO	World Trade Organization	World Trade Organization
ISO	International Organization for Standardization	International Organization for Standardization
VCCI	Vietnam Chamber of Commerce and Industry	Vietnam Chamber of Commerce and Industry

Maybe you are interested!

EPA

United States Environmental Protection Agency	Vietnam-Japan Bilateral Economic Partnership Agreement
PCA	Partnership and Cooperation Agreement	Comprehensive Partnership and Cooperation Agreement with the EU
OBM	Original Brand Manufacturer	Original Brand Production
ODM	Original design manufacturer	Original design manufacturer
OEM	Original Equipment Manufacturer	Original Equipment Manufacturer
ODA	Official Development Assistance	Official Development Assistance
FDI	Foreign Direct Investment	Foreign Direct Investment
FTA	Free Trade Area	Free trade area
PPP	Purchasing power parity	Purchasing Power Parity Method
C/O	Certificate of Origin	Certificate of origin
SMES	Small and medium enterprises	Small and medium enterprises
MFN	Most Favoured Nation	Most-favored-nation treatment
AP	Associated Press	AP News Agency
IPO	Initial Public Offering	Initial Public Offering
EPS	Earnings Per Share	Earnings per share
R&D	Research & Development	Research and development
GDP	Gross domestic product	Gross domestic product
VAT	Value Added Tax	Value Added Tax
GSP	Generalized System of Preferences	Preferential tariffs for developing and underdeveloped countries
VINATEX	Vietnam National Textile and Garment Corporation	Vietnam Textile and Garment Corporation

APPENDIX 1

Table: Statistics of textile and garment industry production capacity in 2008

Classify

Type	Quantity	Proportion
Classification by capital	State:	10	0.50%
	LLC and Joint Stock	1490	74.50%
	FDI	500	25%
Classification by locality	North	300	15%
	Central region	150	7.50%
	Southern	1550	77.50%
Classified by product group:	Textile & Garment	600	30%
	May	1360	68%
	Spinning	40	2%

Source: Vinatex, accessed March 17, 2009 http://www.vietnamtextile.org/ChiTietTinTuc

APPENDIX 2

Table 2.4.: Vietnam's main textile and garment export markets in 2008

Unit: Million USD

Nation

Value 2008	Percent (%)
America	5.105	55.98
EU	1,720	18.9
Virtue	395	4.34
Older brother	316	3.48
Spain	222	2.45
Japan	820	8.99
Taiwan	292	3.22
Canada	172	1.90
Korea	139	1.53
Russia	95	1.05

Türkiye

54	0.60
China	53	0.59
Indonesia	41	0.46
Hong Kong SAR	38	0.42
United Arab Emirates	37	0.41
Cambodia	34	0.38
Malaysia	30	0.34
Saudi Arabia	28	0.31
Singapore	27	0.31
South Africa	12	0.14
Total	8,697	95.36

Source: Compiled from Vietnam Textile and Apparel Association

APPENDIX 3

Table 2.6: Vietnam's main textile and garment export products in 2008

Generic

All year 2008 (USD)	Proportion (%)	Compared to 2007 (%)
T-shirt	2.104.104.800	23.07	36.94
Trousers	1,351,793,186	15.33	9.58
Jacket	1,098,025,432	12.06	5.90
Shirt	500,586,819	5.49	7.53
Jacket	438,736,991	4.91	27.25
Dress	364,552,512	4.00	13.40
Shorts	348,275,595	3.97	14.80
Fabric	360,562,934	3.95	21.05
Children's clothing	309,291,830	3.39	18.92
Shirt	295.230.115	3.34	17.55
Underwear	251,030,776	2.75	20.34
Kimono	123,367,144	1.45	45.18
Vest Clothing	117,968,668	1.38	5.12

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