A STUDY ON INTRA-INDUSTRY TRADE IN THE VIETNAM-CHINA TEXTILE AND GARMENT SECTOR AND STRATEGIC INTERNATIONAL BUSINESS DIRECTIONS FOR ENTERPRISES

Abstract

This study evaluates the current state of intra-industry trade in the textile and apparel sector between Vietnam and China using the gravity model to identify the factors influencing bilateral trade flows. First, the study synthesizes and systematizes the theoretical foundations of intra-industry trade and the gravity model, establishing a basis for analysis. Next, it develops a measurement model for intra-industry trade in textiles and apparel between Vietnam and China. Based on the obtained results, the study assesses the impact of factors such as economic size, per capita income, geographical distance, and agreements on intra-industry trade in this sector. The findings clarify the influence of variables in the model on intra-industry trade between the two countries, providing a foundation for proposing specific solutions to promote textile and apparel trade. These solutions not only aim to enhance the competitiveness of Vietnamese textile and apparel enterprises but also focus on developing appropriate international business strategies to help firms expand their market share and strengthen their position in the Chinese market.