Vietnam’s Textile Industry
This paper seeks to look at Vietnam’s economy, financial sector, and political sector in respect to the textile industry. In an attempt to evaluate the feasibility of entering a foreign market, we focus our paper on a mid-sized company called Augusta Textile Company. This paper seeks to evaluate Vietnam’s potential for investment, particularly in the textile industry. While the company seeks to increase revenues and keep costs of production low, the company must look to expand to growing markets. However, various risks must be taken into consideration, as they can be great barriers to entry. The company looks to expand with the least financial risk, but greatest potential output and revenue. In evaluating the textile industry in Vietnam,
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Currently, the company employs 200 full-time employees, about 50 part-time employees, and a managerial team consisting of 10 employees. Despite the large number of employees, Augusta Textile is a close-knit firm that is run as a family-owned business. Because of our moral and ethical standards, many of our employees remain with us for years. A majority of our employees that leave move onto more educationally advanced positions. We pride ourselves on great quality material, great customer service, and our main priority is customer satisfaction.
Purpose of Expansion and Project Specifications With the success of Augusta Textile Company, our management team has commissioned a study in order to help make an informed decision moving forward. With cost of production increasing in the United States, we are looking to cut our production costs in order to keep prices low for our consumers. Despite keeping prices relatively low, we demand that our quality not be compromised in the expansion process. We are also looking to expand our market, perhaps expanding into the Vietnamese local market, attracting consumers with low prices and great quality. In the process, we are also looking to increase overall revenue. The project specification involves an in-depth look at the country of interest, Vietnam. With its strong textile industry, we must determine whether or not an expansion into the country is feasible. We look at the economic, financial, and political