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Risks and Motivations of Cooperation between China and Vietnam in Textile Industry Based on Empirical Analysis

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DOI: 10.23977/ferm.2023.061018 | Downloads: 49 | Views: 348

Author(s)

Cui Jin 1

Affiliation(s)

1 School of Economics, Guangxi University, Nanning, Guangxi, 530004, China

Corresponding Author

Cui Jin

ABSTRACT

Since China's accession to the WTO in 2001, China's production and manufacturing industry has developed rapidly, and China is known as the "world's factory". In the manufacturing industry, the textile industry occupies an important position. China is the largest producer and exporter of the textile industry, and China's economic stability, foreign exchange reserves, balance of payments and employment problems are also importantly affected by the stable development of the textile industry. However, in recent years, China's textile industry has shifted to Southeast Asia, and a large part of China's textile companies have chosen to invest in Vietnam to build factories. Why Chinese textile companies choose to invest in Vietnam is worth pondering. What kind of advantages Vietnam has compared with China, so that Chinese companies will turn their attention from the Chinese market to Vietnam, and in addition to Vietnam's advantages, what risks there are to invest in Vietnam need to be considered. Therefore, this article will first study and sort out the literature on the foreign investment of Chinese textile enterprises, and then analyze from the aspects of outward direct investment theory, the current situation of China's textile industry's outward direct investment, the competitiveness of Vietnam's textile industry, and the risk of investing in Vietnam, analyze the competitiveness of Vietnam's textile industry with index analysis, analyze Vietnam's investment risk with factor analysis, rank Vietnam's investment risk in the ten ASEAN countries, and measure the level of Vietnam's political and economic risk in an empirical way. Finally, this article will summarize the research conclusions of the article and put forward policy suggestions for the Chinese government and enterprises, hoping to have some reference effect on the foreign investment of China's textile enterprises.

KEYWORDS

China-Vietnam; Textile Industry; Industrial Cooperation; Risks

CITE THIS PAPER

Cui Jin, Risks and Motivations of Cooperation between China and Vietnam in Textile Industry Based on Empirical Analysis. Financial Engineering and Risk Management (2023) Vol. 6: 133-142. DOI: http://dx.doi.org/10.23977/ferm.2023.061018.

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