Assessment of Factors Influencing the Earnings Power of Vietnamese Textile and Garment Enterprises

This study aims to analyze the factors influencing the profitability of Vietnamese textile and garment enterprises within the context of economic integration and increasing market competition. Utilizing multivariate regression analysis and financial statement data from industry enterprises, the research identifies key determinants of profitability. The examined variables include enterprise size, financial structure, labor costs, and technological innovation. The findings indicate that enterprise size is positively correlated with profitability, suggesting that larger firms benefit from economies of scale, leading to cost optimization and enhanced profit margins. Conversely, a financial structure characterized by a high debt ratio negatively affects business performance, reflecting increased financial risk and capital costs. Labor costs exert a dual impact: While high labor expenses, when coupled with strong productivity, can enhance profitability, inadequate cost control may erode profit margins. Furthermore, technological innovation emerges as a crucial driver of productivity improvement, cost reduction, and international competitiveness. Based on these insights, the study proposes policy recommendations and managerial strategies to enhance the profitability of Vietnamese textile and garment enterprises while strengthening their competitive position in the global market.