From Productivity to Competitiveness: Three Essays on How the Competitive Edge of Vietnam's Textile

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From Productivity to Competitiveness Three
Essays on How the Competitive Edge of Vietnam's
Textile and Garment Firms Can Be Improved

• By Team 6
• Dang Nhu Van (Cam Ly)

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Research Structure

• Three essays include
• Productivity Analysis built on previous research
• Policy Changes and Cost Competitiveness of
  Textile and Garment Firms built on previous
  research with some modification on firm's
  reaction
• Qualitative and Value Chain Analysis new
  component that hopes to bring value added

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Essay 3 Value Chain Analysis
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Research questions

• Is the upgrading process (moving up the value
  chain) taking place in Vietnam's TG firms and
  how?
• What are the determinants of firms' ability to
  upgrade?
• Is it worthwhile in terms of profitability and
  value added to move up the value chain?

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Methodology

• Q1Qualitative analysis, using secondary data
  and literature on the topic
• Q2 Porter's diamond model in analyzing
  determinants of TG firms' competitiveness,
  combined with qualitative analysis of other
  factors like infrastructure, spillover effect,
  externality, industrial structure, etc.
• Q3 Regression analysis of value added against
  marginal profitability, capital and labor
  intensity (regressors to be determined)

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Problems for further consideration

• Profitability per unit or total profitability, or
  its proxy
• Does more upgraded means more specialized in
  certain stage in the chain? (to be confirmed
  empirically or through firm intensive interview)
• How to measure profitability at different stages?

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Work plan for next month It depends!

• Literature review on Vietnam specific studies
• Refining methodology, given the data constraint
• Design mini survey/intensive interview of a few
  large TG firms