An Analysis of Vietnam's Textile and Garment Exports: Patterns and Trends

Abstract

This study uses indices of revealed comparative advantage (RCA) and export intensity to examine the patterns and trends of Vietnam's textile and garment exports for the period 2000-2015. The results of the paper are summarized as follows: First, while RCA of Vietnam's finished garment products is the highest, the opposite is true of input textile fabrics. Second, export intensity between Vietnam and East Asian nations was the most intense whereas export intensity of Vietnam with Latin America and EU were the lowest, all the time averaging less than unity. Third, the findings reveal some intrinsic nature of Vietnam's outsourcing economy, when the nation mostly import materials from outside nations to produce and export finished products. The findings have implications for stimulating export incentives and beneficial measures to boost the nation's textile and garment exports to key markets. Moreover, Vietnam should concentrate on manufacturing finished garment products because of their high comparative advantage in the world's markets.