Research On Evaluation Of Outward Investment Environment Of China's Textile Industry: An Industrial Transfer Perspective

Textile and clothing industry has played a significant role in absorbing labor force, providing jobs, stimulating domestic demand and achieving trade surplus. However, with the economic development, textile industry is faced with difficulties such as currency appreciation, the rise in raw materials and labor. Outward industrial transfer and foreign direct investment is an important way for China's industrial upgrading in textile and clothing industry. As a labor-intensive industry, reducing costs may become the main drive for industrial transfer. Recently, with the industrial transfer of textile industry, an increasing number of Chinese enterprises are investing abroad, especially in Vietnam, Cambodia, Bangladesh and Pakistan. Therefore, it is meaningful to evaluate the investment climate of textile industry in the host country, aiming at providing scientific instructions and suggestions for domestic enterprises.This dissertation combined both qualitative research and quantitative analysis. Firstly, the core of the investment environment in each main stream denomination has been sorted out and induced to provide theoretical support for textile investment environment evaluation. Secondly, the general rules of international transfer of textile industry were summarized after looking back to the history of developed country's textile industry transfer process, based on which we described the current status of textile industry transfer and found cost-oriented and market-oriented investment should be the main motives of OFDI. The core part of this dissertation analyzed the investment climate on textile industry in four Asian countries (Vietnam, Cambodia, Bangladesh and Pakistan). After specifying the rules and factors, textile investment environment evaluation system was established. Based on the latest data, entropy theory was applied to the evaluation system and reached a conclusion based on quantitative analysis. Also, the textile investment environment of the four Asian countries has been analyzed through the method of SWOT analysis. Based on the two evaluation process involving both quantitative research and qualitative analysis, a comprehensive conclusion has been reached and showed the textile investment environment of Vietnam is the best among the four, and that of Cambodia and Bangladesh will be suitable for domestic enterprises' investment, Pakistan has the biggest risk as its complicated political background. At last, cluster investment and overseas industrial zone were suggested to domestic enterprises.