RAC Explanation: RCA 6.763441098 2.5

Product code: 8517
Product label: Telephone sets, incl. telephones for cellular networks or for other wireless networks;
other
Vietnam's export value: 63103154
World's export value: 574589388
Vietnam's total export: 304293972
world's total export: 18739914099
Vietnam's import value: 18265117
RCA: 6.763441098
IIT: 0,44894937
RAC explanation: RCA = 6.763441098 > 2.5

Vietnam has a revealed comparative advantage at high level.
Vietnam is a country with a large number in population and not only that
most of the population is young population, which means Vietnam has
a very rich sources of workforce. Therefore, Vietnam has cheaper cost
for labor and this is an advantage when comparing to other
neighbouring country. In addition, Vietnam has a stable political
system, a constantly growing economy, a large market and young
population. All together, these factors has gain more and more
attention to investing in Vietnam by multinational corporations in the
world. It is impossible not to mention multinational corporations or
companies producing electronic components.
Vietnam has received results on the tariff reduction roadmap for electronic
goods since January 1, 2006. Addition to that, Vietnam has officially
joined the World Trade Organization (WTO) on December 11, 2006.
And recently, Vietnam has participated in a series of new generation
free trade agreements such as TPP, EU-Vietnam FTA. These all are
favorable conditions for companies specialize in electronic
components to bring their product to the region. Therefore, Vietnam is
said to have a good and still increasing ability to export electronic
components products.
In the US-china trade war, US set an embargo on Huawei that makes the
exported output is highly damaged, for example like Apple’s production
chain is mainly done by Foxconn located in China, then exported to
the US and other countries around the world. Many electronic branch
for example like Samsung, which accounts for the highest proportion,
has take advantage of this to increase production significantly.
Samsung has a diverse supply chain which is in Korea and Vietnam.
Therefore, Vietnam has a significant increase in phone export.
IIT explanation:
IIT of product code 8517 is 0.4489, which is very high (>1/3).
The fact that Vietnam has very high index of intra-industry trade for
telephone sets can be explained as follows:
Vietnam is famous for its abundant labor force, with relatively low cost. As
labor costs in China have gone up as its development continues
apace, it was inevitable that MNCs would move on to countries with
relatively skilled workers and more competitive wages, and Vietnam is
one of them. Also, as China is tightening its protection for domestic
firms, Vietnam is happily welcoming MNCs. Many big multinationals
are outsourcing their production to Vietnam, for the processes that
require more labor. For example, Samsung currently has a total
investment in Vietnam, which is the firm’s global production hub, of
more than 17 billion USD, with its phone production factories in Bac
Ninh and Thai Nguyen, with around 100.000 workers. Recently, on
2/3/2020, Samsung has made their official announcement to start
construction of their biggest R&D center in Southeast Asia in Hanoi,
with a total investment of 220 million USD.
According to recent statistics, Vietnam is ranking 2nd in phone production,
accounting for 1/3 of the total number of mobile phones produced
worldwide, just after China. Owing to its huge production line, ¼ of
total Vietnam export value comes from Samsung activities. In general,
total export value of phones accounts for more than 1/5 of the country
total export.
Many other big guys on the phone production industry like Google and
Microsoft are also moving a part of their production to Vietnam,
suggest that IIT for this product code will continue to rise in the future,
owning to the country comparative advantage in labor and favoring
policies from the government to attract foreign investment.
Conclusion: A very big proportion of Vietnam import and export is for
telephone set. More and more investments are coming to our country,
which provide jobs for many local people and increase wealth for
provinces where the plants are based. However, it put our country at
the risk of depending too much on big MNCs like Samsung.
2.
Product code: 8542
Product label: Electronic integrated circuits; parts there of
RCA: 2,228452683
IIT: 1,051037822
RAC explanation: RCA <2.5 => low.

Most of the export value (95%) is in the FDI sector, while domestic
enterprises are still unable to participate in the global supply chain and
up to 77% of the product value is completely imported.
Comparing with worldwide corporations, Vietnamese enterprises are in the
circumstances of outdated technology, low productivity, lack of
experience in working with foreign enterprises, not fully standardized,
lack of skilled staff, poor management skills, language barriers,
financial access short
From the perspective of State management, from 2010, the National
Program of high technology development to 2020 and the National
Product Development Program to 2020 approved by the Prime
Minister in Decision 2457 / QD-TTg and Decision 2441 / QD-TTg
opened opportunities to invest in the IC industry.
Accordingly, semiconductor chips are now included in the list of national
products. These decisions open more appealing FDI in both capital
and resources which allow our industry to improve weaknesses and
advance technical manufacture in the future, so that we no longer
solely concentrate on assemble but produce highly complex semi-
products and wide variety of chips and as a result, our export value
could enhance.
IIT explanation:
The specialty of this industry is that at every stage of production, it is
possible to create a commodity that can be traded, usually called
intermediate and final product. Vietnamese enterprises only focus on
assembling electronic components, and the entire integrated circuit is
bought from abroad.
Most of the export value (95%) is in the FDI sector, while domestic
enterprises are still unable to participate in the global supply chain and
up to 77% of the product value is completely imported
The Vietnamese market is assessed to have great potential for developing
the IC industry, with electronic chip products based on basic
technologies such as electronic licenses, RFID chips applied to many
areas of life, SIM mobile phone card, smart mobile phone chip ... With
the emergence of the world's largest electronics and
telecommunications corporations in the Vietnamese market such as
Samsung, LG, Panasonic, Intel ..., this is a fertile land for the field of
electronic circuits.
The human resources of the enterprises are mainly unskilled labour, lack of
high-skilled labour producing semiconductor ICs. Thus, our products
comparing with similar products in foreign markets still lag behind.
Vietnam still has to import a large number of complex semiconductor
components to meet the need to become a partner to provide
supporting industrial products to large corporations.
3.
Product code: 6404
Product label: Footwear with outer soles of rubber, plastics, leather or composition leather and
uppers of materials
RCA: 15,48989416
IIT: 0,02262371907
RAC explanation: RCA= 15.64747979 > 2.5

Vietnam has been recognized as a country with abundant labor resources,
backed by the young population. The cost of labor is relatively cheaper
than that of our neighbor. Vietnam is a young country with a large
market, a constantly growing economy, and a stable political system.
These factors help Vietnam become more and more an ideal
investment attraction of large technology corporations in the world. It is
impossible not to mention multinational corporations or companies
producing electronic components.
With the joining of FTAs, typically the CPTPP Agreement, which came into
effect on January 14, 2019, leather and footwear is one of the first
industries to benefit when export taxes to member countries are
mostly be cut up to 100% or reduced and erased over the years.
Particularly for three countries Canada, Mexico and Peru, which are
the first countries that have a joint commitment with Vietnam, up to
78% of Vietnam's footwear export turnover to Canada is entitled to 0%
tax rate or 75% reduction compared to Previous tax rates, Mexico and
Peru also applied gradually reduced and abolished in the 16th year
with footwear imported into the two countries. In addition, with 17 trade
agreements signed and prepared to participate, Vietnam has an
opportunity to expand export markets, to be protected by legal and
intellectual property rights by FTAs in the market of partner. This is
partly reflected in the growth of export turnover of the Leather and
footwear industry in recent years.
The trade agreements not only open investment opportunities and export
markets for Vietnam's leather and footwear industry, but also
contribute millions of jobs to the country. Thus, socially, the footwear
industry has contributed to creating social security, reducing poverty,
increasing income,…
IIT explanation:
Vietnam is a developed-agriculture country. We have the abundant resource
of leather materials without the demand to import them.
Despite the fact that Vietnam is one of the biggest countries in the world
producing and exporting footwear, Vietnam still need to import a large
number of footwear. Simply, Vietnam has a various kinds of
consumers. For those consumers who have the high and extremely
high income level, their demand are also high associated with the
income level. They desire to own some footwear made by the famous
foreign brand in the world. Contrariwise, lower-income level people
hunt for the products coming from some cheaper-price brand like
China,…
Nowadays, company owners apply economics of scale theory to the
producing process which help reduce the average cost. Currently,
there are many “older” companies utilizing the pros of low labor cost
compared to many countries in the region and the world and labor-
abundant sources in VN to produce in a large scale so that they could
gain more output than the used input quantity with a competitive cost,
even low cost. With regard to abundant supply, exporting is obviously
unavoidable. Moreover, these comparative advantage helps these
enterprises creating a very competitive price for their products which
easily penetrate to foreign markets => boost exporting
These years, the government aims to make the footwear industry one of the
key export sectors.With the joining of FTAs, typically the CPTPP
Agreement, which came into effect on January 14, 2019, leather and
footwear is one of the first industries to benefit when export taxes to
member countries are mostly be cut up to 100% or reduced and
erased over the years. That helps encourage exporting.
The trade agreements not only open investment opportunities and export
markets for Vietnam's leather and footwear industry, but also
contribute millions of jobs to the country. Thus, socially, the footwear
industry has contributed to creating social security, reducing poverty,
increasing income,…
4.
Product code: 8529
Product label: Parts suitable for use solely or principally with transmission and reception apparatus
for . . .
RCA: 8,562372301
IIT: 0,5916594441
RAC explanation:
RCA= 8,592372301 > 2,5
=> Vietnam has high competitive advantage of this product
Explanation:
Nowadays, in the context of globalization and integration, nations have
tendency to corporate and take advantage of other nations' resources
in order that all of them can get benefits from production cost
reduction.
Vietnam has abundant labor force who are mostly the young with relatively
cheap price. Hence, Vietnam is chosen as one of the most ideal
location to produce parts suitable for use solely or principally with
transmission apparatus incorporating reception apparatus for radio-
broadcasting or television, digital cameras, computer monitors and
computer projectors, n.e.s... These products was invented by
developed countries in which the labour cost are extremely high.
Since January 1, 2006, Vietnam has received results on the tariff reduction
roadmap for electronic goods. Not only that, Vietnam has officially
joined the World Trade Organization (WTO). And especially, Vietnam
has recently participated in a series of new generation free trade
agreements such as TPP, EU-Vietnam FTA. Vietnam's partners are
mostly developed countries and they have demand for importing
components to produce technologically advanced products. And it can
be said that Vietnam's ability to export electronic components products
is increasing day by day.
Until 3 years ago, China was still a godsend for the production of
equipment. But that is changing 180 degrees in an era of trade war
and coronavirus. Entering this era, electronics manufacturers around
the world are actively seeking other ways to diversify their supply
chains and avoid having to depend on any single country no matter
how attractive it is.
Therefore, it's the opportunities for Vietnam to develop these products, and
the future scenario is becoming one of the biggest factory of the world.
IIT explanation:
IIT = 0,5916594441 >1/3
Explanation:
IIT of product code 8517 is 0,591659444, which is very high (>1/3).
The fact that Vietnam has very high index of intra-industry for parts suitable
for use solely or principally with transmission and reception apparatus
can be explained as follows:
o Vietnam is famous for its abundant labor force, with relatively low cost.
and corona virus. Entering this era, electronics manufacturers around
how attractive it is. Many big multinationals are outsourcing their
production to Vietnam, they believe that Vietnam is a good location to
build factories such as LG electronics, Google,...
o Besides, Vietnam has signed EVFTA which represents the trade
partnership between Vietnam and EU where there are many electronic
and technology companies. Before the FTA, EU is one of the leading
investors in Vietnam, thus, it's the reason why the exportation amount
of this product has dramatically increased in recent years.
o Many other big guys on the component production industry like Google
and Microsoft are also moving a part of their production to Vietnam,
suggest that IIT for this product code will continue to rise in the future,
owning to the country comparative advantage in labor and favoring
policies from the government to attract foreign investment.
Conclusion: A relatively high proportion of Vietnam import and export is for
component production. More and more investments are coming to our
country, which reduce unemployment for many local people and
enhance standard of living for provinces where the plants are based.
5.
Product code: 6403
Product label: Footwear with outer soles of rubber, plastics, leather or composition leather and
uppers of . . .
RCA: 7,958753223
IIT: 0,02941155756
RAC explanation:
- Resources:
+ many traditional villages specializing in producing shoes, sandals
manually for hundreds of year
+ From 2000 to now, government has granted diverse policies encouraging
investment both in and out country in this industry, plus investment
from Korean, Taiwan leather corporations => boost capital => produce
much more than usual
+ Vietnamese products are highly valued in foreign markets. Step by step,
corporations try to improve and enhance the production technology by
mechanizing non-critical stages and starting concentrating on
manufacturing high-qualified goods.
+ Vietnam has abundant labour source (more than 650000, particularly
female workers account for 80% ) with low labour costs. Firstly, this
industry in VN doesn’t strictly require high-qualified workers and
workers do not even receive formal training but are mainly coached on
the production line. Secondly, most workers’age stand between 20 and
35, in which, the number of labourers graduated from high school
accounts for 70%. The average income of a worker in Viet Nam,
especially for the footwear industry is really low => reduce production
cost
IIT explanation:
Viet Nam is a long-standing agricultural country. The current trend is shifting
the structure of the livestock in the whole industry to spearhead
industry, so we can fully control the source of leather materials to
produce shoes without the demand to import them.
+ Although footwear industry in VN is thriving enough to meet whole
citizen’s demand but we still import similar products oversea due to the
fact that there is sill a roomful of people who have high income and
desire to own foreign brand items (mostly European or American
brands) to express themselves as well as enjoy the high quality these
stuff bring to. Furthermore, recently, many low income people hunt for
Guadong goods (hàng quảng đông trung qu ốc) for its trendy style,
tentatively accepted quality and cheap price that somewhat leads to
increase import but a very tiny number.
+ A lot of firms take advantage of economies of scale to reduce the average
cost. Currently, there are many “older” companies utilising the pros of
low labour cost compared to many countries in the region and the
world and labour- abundant sources in VN to produce in a large scale
so that they could gain more output than the used input quantity with a
competitive cost, even low cost. With regard to abundant supply,
exporting is obviously unavoidable. Moreover, these comparative
advantage helps these enterprises creating a very competitive price
for their products which easily penetrate to foreign markets => boost
exporting
+ These years, the government aims to make the footwear industry one of
the key export sectors
6.
Product code: 9403
Product label: Furniture and parts thereof, n.e.s. (excluding seats and medical, surgical, dental or
veterinary . . .
RCA: 4,95292633
IIT: 0,02959743224
RAC explanation:
after Vietnam joined the WTO, the wood processing industry for export is
entitled to a reduction of the import tax on raw material wood as well
as a reduction in the export tax of goods and products into the markets
of other countries. Benefiting from the tariff war between the US and
China, Vietnamese products are currently enjoying a 0% tax rate,
while Chinese manufacturers (the largest operator in the market) are
subject to The 10% tax may even increase to 25%.
Vietnam's exports of timber and wood products to the EU market are
expected to have good prospects thanks to the advantages that the
implementation of the Voluntary Partnership Agreement on Forest Law
Enforcement, Governance and Trade between Vietnam and EU (VPA /
FLEGT) and the potential of Vietnam - EU Free Trade Agreement
(EVFTA). Vietnam's export products to the EU market will not be
responsible for explaining the origin of timber when FLEGT licenses
have been granted. The EVFTA Agreement with a strong commitment
to reduce tariffs creates a competitive advantage for Vietnam's wood
and wood products compared to its competitors.
Foreign investment is increasing in Vietnam in the field of wood processing.
By the end of September 2019, Vietnam's timber industry received 67
new investment projects, with a total investment capital of over US $
581 million, higher. 2.3 times the total registered capital for the whole
year 2018.
One of the outstanding advantages that foreign enterprises invest in and
Vietnam's advantages are abundant human resources, cheap labor, a
team of skilled technical workers, hard to learn.
In 2019, the Prime Minister issued Directive No. 08 / CT-TTg on a number
of tasks and solutions for fast and sustainable development of the
wood and non-timber forest product processing industry for export.
=> With favorable conditions of labor resources, natural raw materials, trade
agreements have boosted Vietnam's furniture manufacturing and
export industry. However, because most of the furniture is made of
wood, the exploitation of timber for timber needs to be strictly
controlled to avoid forest erosion, the forest area is narrowed,
especially by the state. There are measures to strictly punish cases of
illegal and illegal timber trading, which affect the reputation of
Vietnamese enterprises in the international market.
IIT explanation:
Vietnam has both intra industry and inter industry in exporting furniture.
However, the figure illustrates that Vietnam have a tendency to have
higher inter industry than intra industry in this sector.
Today, Vietnam’s furniture industry is one of the most dynamic operating in
the world. It is currently the second largest exporter of furniture in the
Asia-Pacific region, and fifth in the world, behind China, Germany,
Italy, and Poland. In 2017, furniture exports were valued at around
USD 7.66 billion, increasing to USD 8.66 billion in 2018. There are
several reason why Vietnam tend to use comparative advantage to
exchange the importing products that Vietnam does not have
resources to produce. Firstly, the main exporting furnitures of Vietnam
are made from wood, which is abundant in tropical country as Vietnam
=> having many materials in creating furniture in any styles. Secondly,
Vietnam has abundant labour resources or the high level of production
of furniture with reasonable cost. Therefore, many companies can take
advantage this opportunity to export furniture to foreign country where
their labour resources is exorbitantly expensive. Thirdly, Consumers in
EU countries, the US and Japan are, however, increasingly
demanding that wood used in the construction of furniture is only
sourced from legal sources. At a conference held by the Handicrafts
and Wood Industry Association of Ho Chi Minh City in December
2018, Tran Quoc Khanh, Deputy Minister of Industry and Trade, stated
that the Vietnamese goal of sustainable growth in the sector was
dependent on strict compliance with the recently signed Voluntary
Partnership Agreement on Forest Law Enforcement, and the markets
ability to supply only products contain legal timber to international
buyers. In conclusion, such listed opportunities help Vietnam to hold
the high ranking position in exporting market, and then Vietnam can
exchange the essential products that nation is lacking for example: oil,
coal,...
In conclusion, thanks to the abundance of input resources in creating
furniture, the inexpensive expenditure of labour resources and
important contract registered for furniture export's development,
Vietnam seems less likely to import the furnitures and parts thereof
from other countries. Instead, Vietnam has a tendency to import some
alternatives products that it does not have many inputs and resources
to produce (comparative advantage)
7.
Product code: 8544
Product label: Insulated "incl. enamelled or anodised" wire, cable "incl. coaxial cable" and other
insulated . . .
World's export value:128052968
RCA: 2,436670239
IIT: 0,5432364141
RAC explanation:
RCA = 2,43667024 ( 1 < RCA < 2,5)
This industry is believed to be intensive in the use of labor, and require little
advanced machinery. Some parts of the process still needs to be done
by hand due to the fact that there are many different stages, and a
wide range of designs. The biggest reason behind the comparative
advantage of Vietnam is its large labor force with low-cost workers.
Labor productivity in Vietnam has increased an average of 4.2 percent
a year, a rather low minimum wage that helps firms to reduce the costs
on labor, thus generate more profit. Also, the industrial parks are
rented with low price and little procedures, making it easy to do
business, set up factories and warehouses. Furthermore, the
Vietnamese Government has had policies to encourage this light
manufacturing production to capture its benefits in providing jobs and
encouraging the development of other industries, including higher-
value technologically advanced industries. In early 2017, the
Vietnamese government issued Decision 68/2017/QĐ-TTg on the
development plan for the supporting industries over the 2016-2025
period. The Decision is to promote, support, and attract domestic and
foreign investments into the supporting industries to create outputs
that meet the demand of domestic production and exports and create
a gateway for Vietnamese enterprises to step into the global value
chains. The Government provides tax policies that encourages the
growth industrial manufactures, and financial supports with loans that
have lower interest rate. In addition, since the 1990s, Vietnam has
been accelerating international integrations with widely becoming
signatory members of many FTAs and mega cooperation mechanisms
like TPP, EVFTA, Vietnam-EUEA, etc. which has been creating more
opportunities for Vietnamese products to enter big international
markets like EU, the US,...
IIT explanation:
IIT = 0,5432364141 >1/3
Explanation:
- IIT of product code 8517 is 0,5432364141, which is very high (>1/3).
- The fact that Vietnam has very high index of intra-industry for Insulated
"incl. enamelled or anodised" wire, cable "incl. coaxial cable" and other
insulated electric conductors, whether or not fitted with connectors;
optical fibre cables, made up of individually sheathed fibres, whether
or not assembled with electric conductors or fitted with connectors can
be explained as follows:
o Vietnam is famous for its abundant labor force, with relatively low cost.
and corona virus. Entering this era, electronics manufacturers around
how attractive it is.
wire and cable products are one of the groups that contribute significantly to
the industrial production value of Vietnam.
o Currently, Vietnam has more than 200 enterprises involved in
manufacturing and exporting electric wires and cables, many of which
are 100% foreign invested companies or joint ventures with foreign
countries to invest in producing and exporting goods. This is with large
scale and modern technology line.
In particular, electric wire and cable products for export are mainly produced
by domestic companies; In contrast, imports of many of these
commodity groups belonged to foreign-invested companies,
accounting for 78.1% of total import turnover.
Some experts believe that the Vietnamese economy is moving from a
development stage with an incentive based on available resources to
a performance-based development stage. Therefore, domestic
manufacturing enterprises in general and the electric cable industry in
particular need to focus on improving productivity and quality. In
addition, businesses need to always innovate in technology and meet
increasingly high standards for energy saving, environmental
protection in many countries and territories.
8.
Product code: 8443
Product label:Printing machinery used for printing by means of plates, cylinders and other printing
components . . .
World's export value:90963708
RCA: 3,179435991
IIT: 0,5243806066
RAC explanation:
RCA = 3,179435991 > 2,5
We can see that Viet Nam has revealed comparative advantage in terms of
exporting printing machinery (HS: 8443).
Statistically, in the structures of the industry, 99% of the printing products
exported is “parts of the machinery”, while 1% left is machinery itself.
This phenomenon also means that Viet Nam does not export the fully
complete machines, in fact, we domestically manufacture the
components of the machines, then export them to foreign nations for
assembling later. According to this, there are several reasons to clarify
the system:
Firstly, Viet Nam is still the country of favourable geographical location,
easily to penetrate and transport. Moreover, we have plentiful and
cheap resources that are suitable for the productions of machines,
which will be the obvious factor attracting many foreign companies to
come in and hire us to make components for their production lines.
However, the fact that those companies just have us manufacture the
components comes from the idea of our labour force being not skilful
enough to handle the assembling – the last section to complete the
machines.
Secondly, we have abundant, low - price source of labour, which is also a
great and reasonable method to reduce the cost of manufacturing.
With a lower pay on wages, instead of paying for expensive automatic
technology, foreign businesses are likely to choose Viet Nam as a
great destination for making “parts” of printing machinery.
And the last reason is that Viet Nam government has imposed many
policies encouraging foreign businesses to access the labour market
as well as cooperate with domestic enterprises, accompanied with
several agreements that have been made recently. Therefore, our
export activities has been improved significantly since then – Viet Nam
FDI companies extend their productions. For instance, following the
TPP, EVFTA, our export market has been expanded remarkably, from
China, the US to EU.
Conclusion: Following the growth of global integration and trading, Viet

Nam’s export of HS 8443 products - printing machinery has a
particular revealed comparative advantage, which can be shed lights
by our abundant sources in terms of natural resources and labour
force, in partnership with several trading agreements to boost our
exchanging globally. We can now claim that in the near future, by
increasing and focusing on the current RCA, the industry of
manufacturing printing machinery will promisingly bear fruit and Viet
Nam may witness more development as well as the chance to enrich
the country.
IIT explanation:
IIT = 0.5244
Explanation:
- IIT of product code 8443 is 0.5244, which is very high (>1/3).
- The fact that Vietnam has very high index of intra-industry trade for printing
machinery can be explained as follows:
o Vietnam export structure of this product code indicates that, 99% of the
total export is parts of printing machine, and the 1% left is the whole
machine. Also, Vietnam is among the top 4 consumers of printing
machines in ASIA (after China, Australia and Korea). From that, we
can imply that Vietnam produce most of its printing machines for local
use, but at the same time, very large volume of machine parts is
exported to other countries.
o Vietnam is famous for its abundant labor force, with relatively skilled
workers and competitive wage, compared to other countries in the
region. Also, we are endowed with conditions and resources, which
are pretty plentiful and cheap, that can be used in the production of
machines. So this is the perfect condition for producing machine parts
like printing machinery. Big printing machinery production companies
already have their plants in Vietnam, including HP (biggest market
share), Fuji Xerox, Canon, Epson, Dell, Samsung and Brother.
Especially, Brother, a Japanese corporation, claims that their printing
machine production plant in Vietnam is their largest plant in the world.
o The final reason is that, Vietnamese government is applying policies that
welcome the arrival of MNCs, to strongly attract FDIs and help the
economy grow. Also, the FTAs that we have signed (CPTPP, EVFTA,
AEC,…) have greatly expand our market, making Vietnam a great
country for foreign investment and exporting to other partner countries,
notably the US and EU.
Conclusion: Thanks to its relatively cheap labour force, Vietnam has
become a big production hub of printing machine parts. The printing
machine industry is now dominated by 2 biggest corporations: HP and
Canon, so it is less likely for firms to enter the market. The existing
firms will mainly focus on developing new products and techonogy to
get bigger share of the market.
9.
Product code: 6110
Product label: Jerseys, pullovers, cardigans, waistcoats and similar articles, knitted or crocheted
(excluding . . .
RCA: 0,04543862585
IIT: 0,5275798117
RAC explanation:
Explanation: Currently, Vietnam has a population of about 96 million people,
of which the majority of working age population has provided the
textile industry with abundant labor resources. Moreover, labor costs of
Vietnam's textile and garment industry are relatively low compared to
many countries in the region. The advantage of cheap labor reduces
production costs, reduces costs, helps textile enterprises compete on
price. In addition, Vietnam has a geographical location close to the
source of raw materials (fabrics, main accessories for the industry) in
the world. Subjectively, up to now, nearly 100% of large and medium-
sized enterprises in Vietnam Textile and Garment industry have all the
evaluation certificates of world firms on green growth, green energy
consumption, and Green export ...On April 11, 2014, the Minister of
Industry and Trade issued Decision No. 3218/2014 / QD-BCT
approving the planning on development of Vietnam's textile and
garment industry up to 2020, with a vision to 2030. Decision This
decree clearly points out the viewpoint of developing textile industry
towards modernization, efficiency and sustainability.Vietnam has
officially joined the WTO and in the same time we have completely
abolished textile and apparel export quotas with member countries of
the WTO. Therefore, businesses no longer have to worry about limiting
the export of products in the industry.
With favorable conditions on labor, geographical location. Together with the
State's policies, directives and the signing of trade agreements, it has
opened up many export opportunities for Vietnamese goods, including
textiles and garments, and has affirmed its position on the market.
international markets. Despite many difficulties when Vietnam has not
been proactive in production, mainly importing raw materials from
other countries for processing and exporting, production costs are still
quite high. If Vietnam has more factories, enterprises of weaving,
fabric and dyeing, it is certain that the profits from the production and
export of textiles and garments will be more.
IIT explanation:
Businesses in Vietnam employ human labor for production, which is
inefficient and expensive when compared to machines. In addition,
fabric and dyeing enterprises account for only a small percentage.
Therefore, domestic production costs are high and this is a
disadvantage when competing with other countries in the region.
Vietnam has encountered some challenges when participating in trade
negotiations. Specifically, CPTPP and EVFTA agreements. These two
agreements enforce specific rules of origin, under which the CPTPP
Agreement regulates the origin of yarns and EVFTA stipulates that
fabric origin must be produced from CPTPP countries to enjoy tariff
preferences.
Having not yet established a separate brand for Vietnam's garment and
clothing industry textiles, there has not been a network of broad
distribution networks, including domestic and international markets,
but only its own independent stores for purchasing goods. The ability
to self-design is therefore still poor, mainly by following the designs of
international orders for foreign export order.
The cost of labor is cheap but the quality of labor is not good, particularly
low-professional-level labor accounts for 60 percent so low labor
productivity. Small salaries cause employees to travel in the same
sector or out of sector, making it difficult to train professionally.
Moreover, the company is able to primarily export garments and
outsource, not direct exports. Raw materials also need to be imported
and the textile industry is growing at a slower pace than the garment
industry, so the garment industry has no development and market
initiative. This condition also affects timeliness, consistency and
productivity of orders. The rate of localization of garment products is
still small, and there is no high economic output. While textiles and
garments are one of Vietnam's main export goods, compared to other
countries around the world, there are still many limitations. The State
should therefore have more policies to develop and encourage this
industry, and be sure that the role of the textile and garment products
in our country will stand high in the world.

RAC Explanation: RCA 6.763441098 2.5

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RAC Explanation: RCA 6.763441098 2.5

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Product code: 8517

RAC explanation: RCA = 6.763441098 > 2.5

RAC explanation: RCA <2.5 => low.

RAC explanation: RCA= 15.64747979 > 2.5

Conclusion: Following the growth of global integration and trading, Viet

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