EFFECT OF INVENTORY MANAGEMENT ON PROFITABILITY OF VIETNAMESE LISTED TEXTILE & GARMENT FIRMS

Abstract

This paper aims at evaluating the impact of inventory management on profitability of Vietnamese listed Textile & Garment firms. Based on the dataset of 19 firms (67 firm-year observations) in textile & garment sector during the period of 2014 – 2019, the results shows that efficient inventory management has a positively significant relation with profitability of Vietnamese textile & garment firms. This paper also proposes some recommandations regarding inventory management to enhance the profitability of Vietnamese textile & garment firms.

Keywords: inventory management, profitability, Vietnamese textile & garment firm.