@techreport{oai:kansai-u.repo.nii.ac.jp:00006041, author = {後藤, 健太 and Goto, Kenta}, month = {Jun}, note = {application/pdf, This paper investigates how key export oriented garment suppliers of Vietnam are coping with emerging challenges in the post MFA era. The garment industry is Vietnam’s largest manufacturing based export sector, and is registering significant growth despite increased international competitiveness. The performance of those garment suppliers, however, is not even. While some were able to increase productivity and expand operations, others legged behind in upgrading and stagnated in terms of competitiveness. This diversity of individual firm performance seems to stem from, as well as result in, differences in their relationships to international production and distribution networks, and in responses to changes due to the abolition of the MFA. Moreover, as the economy of Vietnam is growing fast, domestic economic conditions have been changing rapidly with new jobs emerging and wages increasing. This is posing additional challenges to Vietnamese garment suppliers in terms of retaining and hiring workers. In response, many are relocating their production facilities to rural areas to overcome labor shortages and wage increases. Further development of the Vietnamese garment industry, however, cannot be sustained by reducing costs as untapped frontiers of cheap labor will eventually be exhausted. Instead, firms must be able to continuously upgrade in terms of process, product or function. Where upgrading has not been successful, some suppliers are considering moving out from the garment industry and shift into other sectors. Such sectors are typically real estate related industries where profits are based primarily on the rising rental rates of land. Despite being rich with relatively high quality but cheap labor, the industry seems to be already peaking off at the weaker end before having maximized their competitiveness to the fullest extent.}, title = {The Vietnamese Garment Industry in the Post MFA Era: Upgrading, Relocating, or Moving Out?}, year = {2008} }