Research On The Evaluation Of Foreign Investment Environment Of China’s Garment Manufacturers

After the reform and opening policy, China had become the main investment districtof garment manufacturing industry relaying on the cheap labor and abundant resource.However, with the increasing cost of labor, raw material and land and appreciation ofRMB, the advantage is not significant now and the export growth rate of garment islow. Under this background, China’s garment manufacturers comply with theinternational trend of textile industry and invest in overseas actively. Since thecomplicated overseas investment environment, it’s very important to evaluateoverseas investment environment with scientific and systematic methods.This paper chooses four main garment supplier countries which are Bangladesh,Vietnam, Cambodia and Myanmar as examples and evaluate the investmentenvironment with quantitative analysis and qualitative analysis. Firstly, the paperanalyzed the advantage and disadvantage of these four Asia countries from fouraspects, which are general situation of garment processing industry, quantity ofgarment factories, labor force and wages, favorable policy in order to understand theopportunity, challenge and potential benefits when China’s manufacturers investingabroad. Secondly, with the investment environment evaluation system based on theMichael Porter Diamond Model, this paper conducts quantitative analysis of the fourAsia countries in AHP(analytic hierarchy process) and yaahp9.1. Furthermore, thispaper chooses a company-Jiangsu Century Liaoyuan Knitted Wear Co., Ltd which hasinvested in Myanmar as a case to analyze the investment decision process by using investment environment evaluation system. In the end, for the purpose of having abetter decision when China’s garment manufactures investing abroad, this paperprovides some suggestions from both government and enterprise aspects based on thecurrent situation of outwards investment of China garment manufacturers and theresults of four Asia countries investment environment analysis.The main conclusions of this paper are as follows: i) outwards investment of garmentmanufacturers is lower-cost oriented. ii) The investment environment of these fourAsia countries is complicated. On the whole, the investment environment of Vietnamis better than others’, however there is not quite different. iii) The investmentenvironment evaluation system based on the Michael Porter Diamond Model andAHP can offer the reference to China garment manufacturers when investing in othercountries.