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Textile and Garment Industry: Post WWII

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on 18 November 2013

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Transcript of Textile and Garment Industry: Post WWII

Vietnamese Textile and Garment Industry: Post WWII
Vietnamese Reforms: 1986-2002
The Political Changes:
- Vietnam after Doi Moi starts to open up markets to private sectors and Foreign sectors, there is economic renewal.
- growth from state socialism to market economies from 1980's.
- decentralised planning process, state enterprises now operate under a market environment.
Decentralizing Reforms

- private sector accepted to an extent, still government holds on land and policies.
- 1992 government subsidies to state enterprises terminated, wages are increased , promotion of equitization of state enterprises.
-economic growth averaging around 7,8% per year between 1991-2000
- textile sector making 11,6% contribution to economy.
- Trade agreement signed by European Community(EC)
- non - quota markets in Japan, Taiwan, and ASEAN
Global participation
- concern about corruption for private sector 1999
-bilateral trade agreement with the USA effective December 2001, as its largest single market for exports in garments and textiles.
- 2002, 30% of exports going to USA, 20% to EU and 18% to Japan.
- textiles contributes 77% of the value and retained same share since 1986 to 2002 economy.
1. The economy was destroyed after WWII, development under ideological conflicts
An Asian Model of Development: Vietnamese Textiles
2. Growth and the introduction of actors outside of governmental control
Economic Growth
International trade regimes strictly govern the textile and garment industry
2005- end of Micro-Fiber Agreement(MFA)
2007- joined World Trade Organization(WTO)
2010- Vietnam joined Trans Pacific Partnership discussions (originally Brunei, Chile, New Zealand and Singapore founded the TPP in 2005)
Development Theories
at Work: Textile Industry
The country experienced many revolutions, wars and conflicts
The war against colonialism
Vietnam War
Internal conflicts
Ideological Conflicts
Economic liberalization continues to reinforce Vietnam's commitment to economic growth, and is impacted by international trade regimes.
The industry was started under French colonialism, then got seriously destructed during wars and conflicts.
After the country reunion, textiles still was not the focus of economy, because the government prioritized heavy industries.
Neglected Industries
Approaching Asian Patterns
Vietnamese Conflict and Growth: 1945-1986
Vietnamese Exports: 2002-2013
3. Economic liberalization, livelihoods and international trade regimes
Seeking economic development, many Asian countries turned to free markets, participating in economic liberalization and globalization.

Vietnam followed this pattern with the reopening of Vietnam's borders after the Doi Moi, and trade can been seen through free trade agreements internationally and livelihoods at the local level.

After World War II, the national economy was severely destructed.
After country reunion in 1975, the country maintained strict communism
It started modernization 20 years after other Asian countries in the late 1980s
The launch of "Doi Moi" in 1986 remarkably changed the country and industrial structure by integrating it into the modernization.
The Hmong community engages in textile trading across national boundaries and diversifies livelihood strategies.
Cultural and Social Impacts
“Sustainable livelihoods,” defined by Chambers and Conway, “cope with and recover from stress and shocks..."
Agriculture- Subsistence farming.
Trade- During the French Occupation and after the
Doi Moi, tourism provided a consumer base for
Hmong textiles.
Doi Moi:
Neo-liberalism and
Dependency Theory
Economic Liberalization
Full transcript