earticle

영어

This study examines the current trade patterns as well as identifies the country-specific determinants of IIT in the textile and apparel industry between Vietnam and its twenty main trading partners during the 2010-2015 period. The results point to a substantial level of IIT, which is entirely VIIT, indicating that Vietnam’s textile and apparel trade focuses on the trade of intermediate goods. The IIT indices are extremely high among Asian countries. Using a random effect model, important determinants of IIT, HIIT and VIIT are estimated. Results indicate that IIT, HIIT and VIIT are positively correlated with economic size and differences in economic size, and they are negatively correlated with trade imbalance and distance. Differences in Human Development Index have a positive effect on IIT and VIIT. In contrast, participation in FTA increases the share of IIT and HIIT. Consequently, in order to increase IIT of the Vietnamese textile and apparel industry, Vietnam has to accelerate the negotiations of FTA; invest in human resources; support R&D activities and high-technology sectors as well as domestic enterprises that provide intermediate inputs.