An evaluation of financial performance of vietnam textile and apparel industry using Entropy-TOPSIS method

Abstract

Vietnam is one of the world’s top five exporters of textiles and apparel. Textile and apparel companies not only account for a large amount of foreign currency revenue to the state budget, but also contribute to job creation. Therefore, it is of great importance to learn about the financial stability of this strategic economic industry and the issues it needs to address currently or in the future. This study attempts to evaluate 11 Vietnamese textile and apparel companies based on their financial performance using the entropy-TOPSIS method. Seven financial stability ratio data of these companies within the period 2016-2018 were formulated and used for ranking. The ranking shows the degree of their business’s financial stability and security. Moreover, the findings may provide company-level managers and industry management officials with insight into the industry’s financial stability. Managers can see their financial stability status among others in the industry, while officials can identify companies that need government support for funding or interest rate adjustment.