Skip to Main Navigation

Looking Beyond the Horizon : A case study of PVH’s commitment to Ethiopia’s Hawassa industrial park (Inglês)

Textile and Apparel production is seen as an important catalyst for developing countries’ industrialization. It has played an important role as a springboard for economic development and, due to its low fixed costs and labor-intensive manufacturing, is often a starter industry for countries seeking to industrialize. The story of how the PVH Corp.(PVH) came to lead a group of its top suppliers to build factories and a fabric mill in Ethiopia’s Hawassa Industrial Park (HIP) is the study of a strong collaboration between a private company looking to optimize its business model and a government aiming to transform its economy through global strategic repositioning. This case study explains a private investor’s site selection process. It assesses the elements PVH prioritized when deciding to commit to Ethiopia, and specifically to HIP. The case study further assesses the government of Ethiopia’s strategy, level of readiness, interest, and commitment, and sets out some key challenges that lie ahead for this partnership. The case study is structured in eight sections. Section II offers a brief background on the textile and apparel industry, including an explanation of its value chain. Section III describes the site selection process: PVH´s initial explorations in Africa, its consideration of several African countries, and its initial conversations and negotiations with Ethiopian authorities. Section IV discusses the Ethiopian government’s strategy to attract and expand export-oriented investments, including efforts to bolster the country’s competitiveness. Section VI covers the challenges that lie ahead for this project, potential setbacks that will affect not only the consolidation and growth of the textiles and apparel industry in Ethiopia, but also the government’s vision of becoming the Manufacturing powerhouse of Africa. Section VIII concludes with some key lessons from PVH’s decision to invest in Ethiopia.

Detalhes

  • Autor

    Mihretu,Mamo Esmelealem, Llobet,Gabriela

  • Data do documento

    2017/06/01

  • TIpo de documento

    Documento de Trabalho

  • No. do relatório

    117302

  • Nº do volume

    1

  • Total Volume(s)

    1

  • País

    Etiópia,

  • Região

    África,

  • Data de divulgação

    2017/07/10

  • Disclosure Status

    Disclosed

  • Nome do documento

    A case study of PVH’s commitment to Ethiopia’s Hawassa industrial park

  • Palavras-chave

    industrial park;apparel industry;supply chain;apparel company;business model;raw material;advantage of lower entry;regional and local development;chronic foreign exchange shortage;level of readiness;Rule of Law;foreign direct investment;global value chain;apparel sector;apparel production;manufacturing sector;point of entry;social and environmental;industrial park development;code of conduct;site selection process;cost of energy;senior government official;cost of labor;regional value chain;personal communication;capital good;export of goods;vertical integration model;meeting of minds;labor cost advantage;infrastructure and capital;protection of workers;compliance with standard;civil society group;preferential trading arrangements;source of energy;investment promotion agency;bilateral trade agreement;rules of origin;national development plan;exemption from duty;tax on imports;Regional Economic Development;flow of information;availability of water;Letter of Credit;youth unemployment rate;chamber of commerce;private sector involvement;domestic private sector;current account deficit;cost materials;balance of payment;working age population;foreign currency;power cost;international standard;manufacturing facility;government stability;textile industry;tax incentive;Tax Holiday;textile product;apparel manufacturers;human rights;production network;construction material;domestic supply;environmental standard;trade arrangement;installed capacity;dry port;Fire Safety;contractual arrangement;joint mission;partner country;market network;political stability;labor availability;skilled labor;competitive power;government grant;power availability;textile sectors;human capital;light manufacturing;private investor;high sensitivity;corporate profile;Global Footprint;government's strategy;finished product;government's vision;garment industry;annual revenue;worker safety;production base;Global Operations;commercial agriculture;public perception;Industrial Policy;Industrial Policies;Industrialized countries;freight logistics;industrialized country;foreign payment;dwell time;agriculture sector;employment growth;political leadership;national territory;political capital;import increase;external deficit;economic law;foreign investor;export base;foreign reserve;single body;rail connection;Tax Exemption;global economy;global export;worker right;land lease;technological transfer;employment increase;domestic industry;electricity rate;water well;transport cost;freight depot;export commodity;transaction cost;cargo movement;support infrastructure;export good;rail transportation;international airport;industrial space;political issue;written testimony;global market;individual company;good governance;free market;retail outlet;cotton production;long-term commitment;government authority;factory location;input cost;ensuring compliance;department stores;brand name;specialty stores;man-made fibers;trading companies;mail order;channel network;Global Industries;export channel;asian countries;labor standard;duty-free access;global network;lease term;garment factories;knit fabric;textile component;environmental practice;synthetic fiber;competitive exporter;logistical services;international environment;business environment;industrial accident;government aiming;competitive electricity;leather products;large enterprise;diplomatic community;local resident;industrialization effort;manufacturing jobs;reputational risk;private company;environmental sustainability;ethical principle;market participant;production standards;large consumer;preferential quotas;preference schemes;candidate countries;manufacturing operation;safety regulation;long-term strategy;apparel manufacturing;geographic location;export revenue;distribution network;static gains;inflection point;Technology Transfer;industrialization strategy;future study;systematic analysis;Investment strategies;preferential arrangement;corporate executive;peer pressure;agglomeration benefit;comparator country;Demographic Transition

Downloads

COMPLETAR RELATÓRIO

Versão oficial do documento (pode conter assinaturas, etc.)

  • PDF oficial
  • TXT*
  • Total Downloads** :
  • Download Stats
  • *A versão do texto é um OCR incorreto e está incluído unicamente em benefício de usuários com conectividade lenta.