Analyzing Vietnam’s textile garment global supply chain with the Revealed Comparative Advantage
DOI:
https://doi.org/10.20414/jed.v5i3.7070Keywords:
textile garment, global supply chain, revealed comparative advantage, international tradeAbstract
Purpose — This paper aims to calculate and analyze the Revealed Comparative Advantage index (RCA) of Vietnam’s textile garment industry in the global supply chain by comparing it to other countries, thereby suggesting appropriate solutions.
Method — The research uses the calculation method of Revealed Comparative Advantage - RCA. RCA brings up an efficient method to analyze a nation’s comparative advantage based on actual export activity data that were extracted from the TRADEMAP platform.
Result — Although Vietnam has many advantages and strong features, the RCA index (1.93) in this study shows that Vietnam's total textile garment supply chain ranks fifth on a worldwide scale, following Bangladesh (10.54), Turkey (3.81), China (2.55), and India. (2.47). The raw materials (RCA 1.65) and fabric production (RCA 1.29) phases are extremely weak, ranking sixth and fourth in the world, respectively. Making garments is the best, ranking third globally and with an RCA of 3.4.
Contribution — This research validates the usefulness and feasibility of the RCA calculation approach for analyzing the comparative advantages of Vietnam's textile garment supply chain, which has never been used previously. The research measured and quantified the benefits of Vietnam's textile garment supply chain in order to compare other rivals visibly, so readers can clearly grasp where Vietnam stands on the global textile garment supply chain.
Downloads
References
Angie, T.N. (2012). Vietnamese Textile and Garment Industry in the Global Supply Chain: State Strategies and Workers’ Responses. SBGS Faculty Publications and Presentations, 20. https://digitalcommons.csumb.edu/cgi/viewcontent.cgi?article=1019&context=sbgs_fac
Bela, B. (1965). Trade liberalisation and “revealed” comparative advantage. The Manchester School, 33(2), 99–123.
Ch??ng, H.N. & Tro?ng, N.T. (2017). Vietnam’s advantages and export trends in the trading relation with ASEAN. Science & Technology Development Journal, 20(Q2), 29–42. https://vjol.info.vn/index.php/JSTD/article/download/33188/28221/
Gereffi, G., & Memedovic, O. (2003). THE GLOBAL APPAREL VALUE CHAIN: What prospects for upgrading by developing countries.
Ha, L.T.T, Duong, N.T., & Trang, L.T.T. (2018). Relation of intellectual property management to firm performance in the textile and garment industry in Vietnam. Journal of International Economics and Management, 111(11/2018), 64–86. https://jiem.ftu.edu.vn/index.php/jiem/article/view/197/142
Hal, H. (1998). Vietnam Textile and garment industry: notable achievements, future challenges. https://www.yumpu.com/en/document/read/27575591/vietnam-textile-and-garment-industry-notable-unido
H??ng, N.T.T., L?u, D.T., & Loan, B.T.C. (2017). Risky factors in Vietnamese apparel supply chain. Science & Technology Development Journal, 20(Q4-2017).
Hâ?u, M. (2020). The top 5 in the world, a big development room for the Vietnamese mulberry industry. Vietnamese Agricultural Newspaper.
Hô?i, H.V. (2012). Vietnam’s textile garment export value chain: Disadvantages, difficulties, and countermeasures. VNU Journal of Economics and Business, 28(4), 245–251.
Kha?i, D.C. & Nhung, D.T.T. (2011). Vietnamese textile garment value chain.
Lan, T. (2021, November). Facts and challenges of green jobs in the Vietnamese textile garment industry. Labor and Society.
Nên, N.V. (2016). Hurdles of Vietnamese textile garment firms to participate in the global textile garment value chain. Science & Technology Development Journal, 19(Q1-2016). https://vjol.info.vn/index.php/JSTD/article/download/24151/20632
Oanh, V.T.K. (2020). Use the export finance service to enhance firm performance of the Vietnamese garment export enterprises. Journal of International Economics and Management, 120, 42–51.
Ricardo, D. (1817). The principles of political economy and taxation. (3rd ed.). John Murray. https://historyofeconomicthought.mcmaster.ca/ricardo/prin/index.html
Sang, V.M. & Xê, D.V. (2016). Three main viewpoints to measure the competitive advantage in the national production-export. Science Journal of Can Tho University, 44, 114–126. https://ctujsvn.ctu.edu.vn/index.php/ctujsvn/article/view/2405/1414
S?n, N.T. & Quyê?n, N.N. (2022). Impacts of Covid-19 pandemic on textile and garment industry in Vietnam. Vietnam’s Economic Recovery and Development in the Context of Covid – 19 Pandemic., 975–987.
Thang, H.H. (2022). Breakthrough, Prospect 2022. FPT Securities.
Thu, N.T.B. (2015). AEC – the opportunity to upgrade global value chain of textile and garment in Vietnam. Conference On Management and Business- COMB 2015.
Thuâ?n, L.H. (2017). Change to break through. FPT Securities.
Trang, T.T.T. (2016). The global production network of the textile garment industry and Vietnam’s participation. Journal of Economics & Development, Special Volume, 71–78. https://ktpt.neu.edu.vn/tap-chi/so-dac-biet-469/muc-luc-160/mang-san-xuat-toan-cau-cua-nganh-det-may-va-su-tham-gia-cua-viet-nam.375632.aspx
Trung, L.V. & Châ?t, P.V. (2016). Overview of Vietnamese oil & gas industry. Journal of Economy – Management of Oil & Gas, 4/2016. http://rgi-documents.s3.amazonaws.com/145d2574cc9863e8d652c7b4ab01bce83a84257a.pdf
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Ngoc Quyen Nguyen
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
