The Market For The Textile Industry Essay

1982 Words8 Pages
Introduction
Aussie textiles are a medium sized organization which produces quality garments located at Queensland. As there was a huge competition for imported goods at a cheaper price, the organization had decided to establish a manufacturing plant and import goods from one of the three countries namely Bangladesh, Indonesia and Vietnam. This report will be focusing on how Vietnam could be a potential country for setting up an entirely new manufacturing plant to produce quality textiles and export back to Queensland. Further adding on to the report, it attempts to analyze the pros and cons, followed by the industry overview and analysis. In the next paragraphs, the market for the textile industry will be analyzed using the industry data. In addition to this, tools such as porter five forces model will be used to analyzing the potential as a host market for manufacturing. And finally the recommendation declaring if the market in Vietnam is feasible for manufacturing or not.
Industry Overview
Over the course of little more than a decade, Vietnam has become a significant exporter of garments to the EU and Japan, and now to the Australia too. Textiles are a vital component of Vietnam, presently accounting for nearly half of the country’s manufactured exports. As clothing is some of the most synchronized operated sectors in the world, it accounted for 16.5% of the total earnings in the year 2002(Nadvi et al. 2004). The apparel industry in Vietnam has been incorporated into
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