CHAPTER 1: LITERATURE REVIEW 1.Analysis of macroeconomic environment Fluctuation of the textile market is closely related to the domestic macro economy. Analysis of the macro economy is to assess the business environment and the impact of the business environment on the performance and business results of the company. There are many basic macro factors that directly affect this industry Gross domestic product (GDP): is the market value of all final goods and services produced within a country in a given period of time (N. During the flourishing period, GDP increases and vice versa during the recession, GDP decreases.
Inflation: is a situation in which the economy’s overall price level is rising (N. The inflation rate is the percentage change in the price level from the previous period. Inflation is often accompanied by economic growth and an increase in the number of jobs. Inflation itself is not bad because Inflation could encourage economic development.
Moderate increases in price level tend to stimulate investment, including domestic investment and foreign investment, maintaining high employment rate and increase in GDP. In contrast, high inflation would reduce growth and limit investment. Interest rate: is the cost of borrowing, or the price paid for the rental of funds (Frederic S. Interest rates are probably the most important macroeconomic factors to consider in investment analysis.
The increase in interest rates could be bad news for the stock market. Although there are many different interest rates in the economy, these interest rates tend to vary in the same direction, so economists often discuss at a representative interest rate The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, Luan van and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. An exchange rate is the value of one nation's currency versus the currency of another nation or economic zone.
Import-Export be one of our parts, part of them is international 1.Sector A sector is an area of the economy in which businesses share the same or a related product or service. It can also be thought of as an industry or market that shares common operating characteristics. Dividing an economy into different sectors allows for more in- depth analysis of the economy as a whole. Almost all economies are comprised of four, high-level sectors, which, in turn, are each made up of smaller sectors.
Of the large sectors within an economy, the first group is called the primary sector and involves companies that participate in the extraction and harvesting of natural products from the earth, such as agriculture, mining and forestry. The secondary sector consists of processing, manufacturing and construction companies. The tertiary sector is comprised of companies that provide services, such as retailers, entertainment firms and financial organizations. The quaternary sector includes companies in the intellectual pursuits, such as educational businesses.
Investors use sectors to place stocks and other investments into categories such as technology, healthcare, energy, utilities and telecommunications. Each sector has unique characteristics and a different risk profile that attracts a specific type of investor. As a result, it is common for analysts and other investment professionals to specialize in certain sectors. For example, at large research firms, analysts may cover just one sector, such as pharmaceutical companies or technology stocks.
Additionally, investment funds often specialize in a particular economic sector, a practice known as sector Luan van investing. For example, the oil and gas sector is a large industry that attracts specialized investment funds. Momentum in these sectors is measured using The Stochastic Oscillator and the Stochastic Momentum Index. +How Investors View Sectors Almost all serious investors look at sector performance at least weekly.
For example, many investors conducted sector analysis on Friday, June 1, 2018, for the investment week of May 29, 2018, to June 1. As of that Friday, shares of companies in the coal industry group were the top performers with a return of 10.25%, while automobiles came in second with growth of 6. The automobile industry received a boost from shares of General Motors (GM) that rose on news that Softbank Vision Fund planned to invest $2 billion in the automaker's self-driving cars. The next two highest performing industry groups were the Internet and real estate holdings and developers, with gains of 4.
Stocks tend to follow the performance of their respective sector, in addition to the overall stock market. Keeping abreast of the market can make it easier to determine when a stock that belongs to a particular sector has bottomed out.Garment & Textile sector The textile and apparel industry is one of the key sectors of the consumer goods industry, involving the production of yarns, textiles, fabric, product design, apparel finishing, and finally the distribution of goods. garment to consumers' hands. Textile and garment industry contributes to ensuring consumer demand, essential for most industries, and daily life; It is an industry that brings export surplus to the economy; contributes to creating jobs; increases social welfare.
Departments Of Textile Industry Spinning The conversion of fibre (natural or man-made) into yarn is called spinning. The spinning department has many steps like blowroom, carding, drawing, combing, simplex and ring Luan van frame. Blow room isthe first step of spinning. Here the cotton bale is turned into uniform lap of particular length by opening, cleaning, blending or mixing.
The next step is carding. Carding is called the heart of spinning. The third step is drawing. Here the slivers are blended, doubled, leveled and drafted.
The next step is combing. It is a process of straightening and parallelizing of fibres and also the removal of short fibres and impurities. Then the step comes is simplex. Here slivers are attenuated and also given a small amount of twist.
Then the slivers are turned into roving. The last step is ring frame. The roving, on bobbins, is placed in the ring frame, where it passes through several sets of rollers running at higher rates of speed and is finally drawn out to yarn. Fabric Manufacturing There are different methods of fabric manufacturing.
Among them the weaving and the knitting are mostly used. Weaving is the major method of fabric manufacturing. The technique probably became known before spinning. Primitive people may have observed the grasses and twigs in the nests of birds, and thus discovered how they could make clothing for themselves.
Spinning developed when people discovered that the raw materials could be improved before they were woven. In the course of time, rude looms were made, which were crudely simple and hand-operated. Now a day different modern looms have been developed but essentially performs the same operation as the simple hand operated loom. Weaving department also has different sections like winding, warping, sizing, looming.
Knitting is the second most frequently used method of fabric manufacturing. The popularity of knitting has grown tremendously within recent years because of the increased versatility of techniques, the adaptability of the many new man- made fibres, and the growth of consumer demand. Today the uses of knitted fabrics range from hosiery, underwear, sweaters, slacks, suits and coats. Wet Processing Wet processing is the department where de-sizing, scouring, bleaching, washing, mercerizing, dyeing, etc.
Desizing is done to remove the sizing materials. Scouring is done to remove the fats, oil, wax by using alkali. Bleaching is done to remove Luan van the natural color from the fibers. Washing is done to clean the textile material, Mercerizing is done to make the fabric brighter than bright and dyeing is done to make the fabric mono uniform colored.
Different types of machines like kier boiler, J-box, Jet, Jigger, Pad mangle, Winch dyeing machine, etc. are used in the wet processing department. Garments Manufacturing The processing steps and techniques involved in the manufacturing garments for large scale production on industrial basis for business purpose are called garments manufacturing technology. Garments factories are classified into three categories as woven garments factory, knit garments factory and sweater garments factory.
The factory which producing garments from woven fabrics is called woven garments factory. The factory producing garments from knit fabrics is called knit garments factory. To produce garments we need sewing machines but the sewing machines are of different types used for different specific types of stitches. Name of some common sewing machines used in the garments manufacturing are mentioned below – Lock stitch sewing machine Chain stitch sewing machine Over lock sewing machine Flat lock sewing machine Blind stitch sewing machine Bar Tac sewing machine Button hole sewing machine Button attaching machine Label sewing machine etc.
Lastly we can say that, the textile industries provide us with the above goods while providing a valuable source of income for many people all over the world.3 EVFTA free trade agreements A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. The concept of free trade is the opposite of trade protectionism or economic isolationism. +The EVFTA Agreement was kicked off and concluded negotiations in the context of the bilateral development of Vietnam-EU relations, especially in the field of economics and trade.
The EU is currently one of Vietnam's leading trading partners with a two-way turnover in 2019 of US $ 56.45 billion, of which exports reached US $ 41.5 billion, imports from the EU reached 14. EVFTA is a comprehensive, high- quality, and guaranteed benefit agreement for both Vietnam and the EU, which also takes into account the development gap between the two sides. +If implemented, EVFTA will be a huge boost for Vietnam's exports, helping to diversify markets and exports, especially agricultural and aquatic products as well as Vietnamese products. inherently has many competitive advantages.
From there, Vietnam will attract more investors from the EU and other countries. +Strategically, the negotiation and implementation of these Agreements also sent a positive message about Vietnam's determination to promote deep integration into the world economy in the context of the current economic situation. the geopolitical situation is more complicated and unpredictable. Some key contents of the EVFTA Agreement Luan van EVFTA is a comprehensive, high quality, balancing agreement of interests for both Vietnam and the EU, at the same time compliant with the provisions of the World Trade Organization (WTO).
The Agreement consists of 17 Chapters, 2 Protocols and several memoranda of understanding attached to the main contents: goods trade (including general provisions and market-opening commitments), rules of origin, customs and trade facilitation, food safety and hygiene measures (SPS), technical barriers to trade (TBT), trade in services (including general provisions and market access commitments) ) investment, trade remedies, competition, state-owned enterprises, government procurement, intellectual property, trade and Sustainable development, cooperation and capacity building, legal issues physical-institutional. Trade-in goods For Vietnamese exports, as soon as the Agreement comes into effect, the EU will eliminate import duties on about 85.6% of tariff lines, equivalent to 70.3% of Vietnam's exports to the EU. After 07 years from the date of entry into force of the Agreement, the EU will eliminate import duties on 99.2% of tariff lines, equivalent to 99.7% of Vietnam's exports. For the remaining 0.3% of exports, the EU commits to giving Vietnam a tariff quota with an import duty of 0% Thus, it can be said that nearly 100% of Vietnam's exports to the EU will be eliminated import tax after a short journey.
So far, this is the highest level of commitment a partner gives us in the signed FTAs. This benefit is especially meaningful when the EU is continuously one of the two largest export markets in our country today.