| Currently, over capacity, stressful business environment force Chinese textile and apparel enterprises to confront with a new round of transformation and upgrading. At the same time, the rising Southeast Asian countries enjoy preferential trade policies with many countries as well as superior business environment and have become hotspot for investment for Chinese textile and apparel enterprises. Driven by trade agreements and FTAs like Chinese B&R Initiative and Trans-Pacific Partnership Agreement(TPP), Regional Comprehensive Economic Partnership(RCEP), Viet Nam has been becoming the investment focus for textile and apparel enterprises. It’s in the context of industrial transfer of Chinese textile and apparel industry and accelerated development of regional economic integration to evaluate macro environment for investment and development space in Viet Nam in order to discuss investment potential of Chinese textile and apparel enterprises. It provides some means of use for reference and guidance to Chinese proposed investors, especially to those who plan to invest in Viet Nam.First, the analysis of macro environment for investment in Viet Nam through key factors evaluation method shows great development potential in Viet Nam’s domestic and international markets as well as cost, natural resources and location advantages. But disadvantages such as imperfect infrastructure, depreciatory currency and low level of hi-tech innovation capacity exist. Estimation of China’s investment potential to Viet Nam made through investment gravity model shows that China’s OFDI is in the position of “inadequate investment”, thus OFDI to Viet Nam remains huge increasing space. Second, on the basis of current situation of Viet Nam’s textile and apparel industry, assessment of investment value and potential section in Viet Nam’s textile and apparel industry was made. Considering characteristics of Chinese enterprises, appropriate investment strategy in Viet Nam was summarized. Case analysis of TEXHONG and SHENZHOU was made to provide reference for the proposed investors.The study shows Viet Nam’s textile and apparel industry has witnessed rapid growth, especially yarn and apparel section with sufficient capacity and competitiveness of export. Limited by incomplete industrial chain and imperfect infrastructure, Viet Nam’s textile and apparel industry confronts with unbalanced development. Chemical fiber, fabrics, textile printing and dyeing, fabric finishing, clothing accessories and equipment section embrace great investment potential. In order to take full advantage of and give full play to Viet Nam’s comparative advantages for Chinese investors, suggestions such as investment pattern of collaboration as well as longitudinal development and vertical integration of industrial chain were proposed to Chinese investors. |
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