Vietnam: Upgrading from the Export to the Domestic Market

Abstract

The termination of the Multifibre Arrangement (MFA) at the beginning of 2005 induced significant structural changes in the global garment trade. Countries whose exports to the US and EU markets were previously “guaranteed” under the quota system faced immense competition from more competitive suppliers that were restricted under the MFA regime. Through this event, a large number of African suppliers struggled to sustain their export shares whereas many Asian exporters recorded growth in exports. Vietnam is one such high-performing country with remarkable growth; its export value in 2011 was US$14 billion, 1 more than triple that in 2004 (US$4.2 billion). These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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