The Belt and Road Initiative and Its Perceived Impacts on the Textile and Garment Industry of Vietnam

Abstract

The main purpose of this study was to find out the perceived impacts on the garment and textile industry of Vietnam from the Belt and Road Initiative (the BRI), a global-scale developmental and trade facilitation policy of China. The research applied both desk review and in-depth interviews with 54 leaders and high-ranked officials from public and private sectors in 2017 to identify potential impacts of the BRI on the Vietnam textile and garment industry. In addition, perceived challenges and opportunities of the BRI were also examined. Respondents from both sectors agreed that the initiative could foster textile export and the development of infrastructure. Apart from that, the main challenge is recognized as the poor competitiveness of Vietnamese textile firms on the international commercial playground. Solution insights that were offered through interviews suggested that the competence of domestic apparel brands and establishment of ODM (Original Design Manufacturing) and OBM (Own Brand Manufacturing) business models in Vietnamese textile producers may play the key roles in coping with the new challenges and in grasping opportunities that the initiative has to offer. From the perspective of the state, an improved public administration system is perceived as the key element in supporting the enterprises for upcoming challenges.

The United States’ Clothing Imports from Asian Countries along the Belt and Road: An Extended Gravity Trade Model with Application of Artificial Neural Network

“…Among Asian countries, China has been a leading clothing manufacturer and exporter since the nineties [10]. However, rising production costs and labor shortages in China have led many clothing manufacturers to relocate their labor-intensive production facilities from China to other, lower-cost, countries in the region such as Vietnam [11], Bangladesh [12], Cambodia [13], and the Philippines [14]. The BRI may present opportunities for many businesses to overcome some of the barriers to and risks of relocation.…”

A Discussion of a Luxury Apparel Brand Strategy in an Emerging Market: Conceptual Model with Network Perspectives

“…Burberry must take measures to ensure cultural and language constraints become an obstacle. Moreover, to ensure a sustainable behaviour in the Vietnamese market, Burberry should abide to the ethical code of conduct and legal policies set in Vietnam when making collaborations (Le et al, 2019).…”

Sustainability Benefits of RFID Technology in the Apparel Industry

“…Case 5: In the current economic reality, it is becoming easier for companies to adopt RFID technology due to the globalization of value chains. For instance, the Belt and Road Imitative (BRI) is a global trade policy of China that aims to connect different countries by developing and linking their supply chains [54]. Many developing countries are still only doing cutting and sewing businesses, but only organizations with a good supply chain can play an important role with international buyers [54].…”

“…For instance, the Belt and Road Imitative (BRI) is a global trade policy of China that aims to connect different countries by developing and linking their supply chains [54]. Many developing countries are still only doing cutting and sewing businesses, but only organizations with a good supply chain can play an important role with international buyers [54]. RFID is a solution to link supply chains because it can trace the location history of a product, which enables small apparel-producing companies to track where a product is coming from and, as a result, enhance their supply chain.…”