Factors affecting customer relationship of Vietnamese textile companies

Phan Dinh Quyet, Nguyen Thi Van/ MICA 2018 Proceedings  
International Conference on Marketing in the Connected Age (MICA-2018), October 6th, 2018  
Danang City, Vietnam  
Factors Affecting Customer Relationship of Vietnamese  
Textile Companies  
Phan Dinh Quyeta*, Nguyen Thi Vana  
aThuongmai University, 79 Ho Tung Mau Street, Hanoi, Vietnam  
A B S T R A C T  
It can be seen that the sustainable relationship between selling organizations and buying organizations has an  
important contributor in creating as well as enhancing the competitive advantage for organization. Especially,  
in this stage, when the competitive intensity in each industry is more and more significant. The textiles  
industry is considered as one of the most important economic sector in Vietnam, which has biggest  
contribution to the economic development of Vietnam. However, the Vietnamese textile industry was facing  
to some difficulties such as low added value and instability of textiles products because the relationship  
between Vietnamese textile companies and their customers exists many limitations. Based on these reasons,  
this research will explore the factors which effect on this relation; thereby author will introduce a strategic  
direction to enhance this relationship as well as improve the competitive ability for Vietnamese textile  
companies. In this research, the author has the combination between qualitative research and quantitative  
research. The author believes that the result in the data analysis is an important basic to give the  
recommendation to improve the relationship between Vietnamese textile companies and their customers.  
Thereby, the competitive ability of Vietnamese textile companies will be enhanced. Also, the author hopes  
that this research will contribute a part of theoretical framework to customer relationship research in general  
and customer relationship in textile in particular.  
Keywords: Customer relationship; textile  
1. Introduction  
Since an economic reform strategy, known as doi moi (renovation) was launched in 1986, Vietnam increased  
the trade with the rest of world (Tho 2013). Besides that, The United States granted Vietnam normal trading  
relation (NTR) and later Most- Favoured Nation (MFN) status, which helped Vietnamese enterprises to reduce in  
tariffs (Manyin 2002). Especially, Vietnam joined World Trade Organization (WTO) in 2007 which will bring  
many opportunities as well as challenges to Vietnamese enterprises in general and Vietnamese textile industry in  
particular (Ministry of industry and trade of Vietnam, 2014).  
According to report of Embassy of Denmark in Vietnam (2010), Vietnam was known as traditional country  
with cutting and sewing. According to Report of Vietnam Textile and Apparel Association (VITAS) in 2013,  
The Vietnamese textile industry with more than 3800 companies had strong step. However, it was begun to  
invest in spinning and weaving in recent years. When Vietnam joined World Trade Organization (WTO), there  
will have some opportunities such as: Firstly, Vietnamese textile companies will have a chance to enlarge  
domestic textile and expand export market. Secondly, Vietnam will receive tax incentive, which will help  
Vietnamese textile companies get bigger profit as well as competing better by reducing price. Based on these  
opportunities and combining with comparative advantages such as abundant source of skilful, fast-learning and  
* Corresponding author. E-mail address: [email protected]  
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wage-competitive labor…, Vietnamese textile industry invested and changed equipment and technology to meet  
the market demand and to improve its competiveness (Tuan 2012). As a result, Vietnamese textile industry  
gained worthy position in world textile industry. Vietnamese textiles companies penetrated many countries in the  
world and becoming one of three key export industries, which have biggest contribution to the economic  
development of Vietnam. However, the total number of exporting was increasing extremely, but the profit was  
not high and Vietnamese textile products have low competitive ability (Report of Embassy of Denmark in  
Vietnam, 2010). The author will give some reasons to explain for these results.  
Firstly, The Vietnamese textile companies still depend heavily on imported materials and accessories;  
therefore, Vietnamese textile companies focus on two business methods as outsourcing and offshoring (Global  
Insight 2011). In addition, the weakness in designing products also effected on the quality of Vietnamese textile  
product; thus Vietnamese textile products had not satisfied the customer's requirements (Tuan 2012).  
Secondly, the communication activities to advert for Vietnamese textile industry were not effective;  
Vietnamese textile companies only concentrated on exhibitions, events, and have not created good interaction  
between Vietnamese textile companies and their customers (Nadvi et al. 2010, Hoang 2012).  
And the last, the customer service of Vietnamese textile companies is weaker than other competitors (Hoang  
2012). These activities such as resolving customer's complaints, customer care are not good (Vietnamese Textile  
Industry 2013). As a result, the relationship between Vietnamese textile companies and their customer is not  
good and the competitive ability of Vietnamese textile companies is low in comparison to other competitors in  
the world (Hoang 2012).  
In the next time, the key markets of Vietnamese textile companies are still markets, which have high  
purchasing power such as United State, EU, Canada, Japan, Korea, Australia, Hong Kong, Singapore, Sweden,  
and England. Besides that, according to (Goto, Natsuda and Thoburn 2011) Vietnam textile companies will be  
competing with many textile companies in the world; especially Chinese textile, which has strong  
competitiveness, available materials and accessories and ability to meet various types of goods ranks. Thus,  
Vietnamese textile companies will have to attempt more to meet customer's demands to compete with  
competitors. One of the first requirements in this time is that Vietnamese textile companies should maintain a  
good relationship with customers (Thomsen 2007)  
2. Literature review  
2.1. Customer relationship  
According to Godson (2009), customer relationship has an important role and the suppliers need create a  
bond base on commitment, trust, and many other factors to satisfy demands of customers. In other words,  
companies should find the ways to create customer satisfaction, loyalty and customer retention in doing business  
(Godson 2009). Besides that, there are many researchers such as Kotler and Strong (2008); Cook (2012) … also  
supported to theory of Godson (2009). They showed that customer satisfaction, customer retention and loyalty  
were keys of designing good customer relationship. In the other word, every organization wants to have a good  
customer relationship; they have to get customer satisfaction (Kotler and Strong 2008; The financial time 2013;  
Angelova 2011; Engkumaran and Navaratbaseelan 2014; Goncavles and Sampaio 2012; Banasiewitz 2002),  
customer retention or loyalty (Rizal Ahmad 2001; Butler 2004; Godson 2009; Virvilate 2009; Hennig-Thurau  
and Hansen 2000). Also, maintaining the customer relationship can bring three positive values to company.  
Firstly, customers who are satisfied by products or services of organizations will promote products and services  
of organization to many people by many ways such as word – of – mouth … Secondly, customers who are  
interested with products or services of suppliers seem to be less price – sensitive. Lastly, customers will be  
willing to sympathy for suppliers if there is any problem, which is out of expectation of suppliers (Godson  
2009).  
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BREAK  
EVEN  
1
2
3
4
5
6
7
Year  
Fig. 4. The importance of keeping customers over time (Godson, 2009)  
2.2 Competitive advantage and relationship between customer relationship and competitive advantage  
2.2.1 Competitive advantage  
According to Porter (1985), the term competitive advantage is the ability which organization will be gained  
through using resources to perform at a better level than other organizations in the same industry or market. It  
means that competitive advantage is key success for organization in order to be more profitable than its  
competitors. When organizations maintain their sustainable competitive advantage in the long term, they can  
boost the image, the valuation as well as the future potential of their company in the market. The researchers can  
approach competitive advantage by basing on resource (David 2013) or basing on knowledge (Nonaka 1995).  
With two approaches, organizations can create the competitive advantage. However, in this research, author will  
base on the view of David (2013) - competitive advantage based on resource. With this approach, author believes  
that the relationship between sources of competitive advantages and customer relationship will be clarified  
clearly. According Porter (1985), the competitive advantages of organization base on two souces such as low  
cost and differitiation. Hence, base on two sources, Porter (1985) also introduced competitive trategy matrix with  
three types of strategies which help organizations can achieve and maintain competitive advantage.  
Based on the competitive trategy matrix, Porter (1985) emphasized that customer is the main target of any  
strategy to create competitive advantages. Organizations can satisfy the demands of customers by supplying  
better products; better services; better communication than competitors (Porter 1985). Besides that, organization  
can also satisfy the requirements of customers with lower prices than competitors. Therefore, building a good  
customer relationship is one of the best ways to create the competitive advantages (Virvilate 2009); (Hennig-  
Thurau and Hansen 2000).  
Relationship between customer relationship and competitive advantage  
Nowadays, many companies try to lead their core competence to satisfy the demands of customers; and these  
companies attempt to create products or services as well as expectation of customers Hennig-Thurau and Hansen  
(2000). In many antecedent researches, it can be seen that customer relationship is one of the most important  
assets of organizations and it has a crucial role in creating the competitive advantage (Godson, 2009).  
According to Hennig-Thurau and Hansen (2000), any company can gain competitive advantage through  
customer satisfaction and customer loyalty; especially in current situation, when new market mechanisms are  
changing the key factors of success. And Hennig-Thurau and Hansen (2000) also emphasized the correlation  
between customer satisfaction and repurchase loyalty. In addition, Padvamathy et al (2012) also showed the  
relationship between customer relationship and competitive advantage through customer satisfaction and  
customer loyalty.  
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Customer satisfaction  
Competitive  
Advantage  
Customer  
relationship  
Customer loyalty  
Fig. 5. Relationship between customer relationship and competitive advantage (Padvamathy et al, 2012)  
Based on this figure, which was built by Padvamathy et al (2012), author believes that organization can gain  
the competitive advantage from customer relationship through customer satisfaction and customer loyalty.  
Therefore, customer satisfaction and customer loyalty will be the middle of relationship between customer  
relationship and competitive advantage. Therefore, author concerns that organizations should focus on the  
factors which effect on customer satisfaction and customer loyalty to improve the customer relationship as well  
as competitive advantage.  
In addition, Sheth (2014) supported for theory of Padvamathy et al (2012) by presenting Six Competitive  
Advantage through customer satisfaction model. Through this model, each Sheth (2014) wanted to emphasize  
that if organization can gain customer satisfaction, organization can get 6 competitive advantages.  
2.3. Factors effect to customer relationship  
2.3.1. Trust  
Trust can be defined as “the willingness to rely on an exchange partner in whom one has confidence”  
Moorman, Deshpande and Zaltman 1993; Dirks and Ferrin 2001; M.Doney, M.Barry and Abratt 2007). In  
relationship marketing theory, trust is seen as main factor for successful customer relationship. If customer can  
trust a product or service, loyalty can be seen as the result which will effect on customer behaviour in the future  
(Godson 2009; Corsten and Kumar 2005)  
2.3.2. Commitment  
There are many researches about commitment which were conducted by many author such as Morgan and  
Hunt (1994); Hennig-Thurau and Hansen (2000); Fullerton (2003); Wulf and Odekerken - Schroder (2000);  
Godson (2009), etc. Both of them confirmed that commitment was seen as an important element in collaboration  
between customers and suppliers in B2B context (Hennig-Thurau and Hansen 2000; Fullerton 2003; Wulf and  
Odekerken - Schroder 2000). Commitment extremely effects on relationship between customers and suppliers;  
especially between customer as organization and supplier (Godson 2009).  
2.3.3. Communication  
Communication was seen as the bridge to connect suppliers and customers (Hennig-Thurau and Hansen  
2000; Tai and Ho 2010) and this issue plays an important role in “business to business” as well as “business to  
customer” transaction (Mohr and Nevin 1990). According to Morgan and Hunt (1994), communication can be  
defined as "the formal as well as informal sharing of meaningful and timely information between firms". It  
means that communication is only carried out between at least two partners Tai and Ho (2010); Al-Khaffaf and  
Abdellatif (2011); Dwayne Ball (2004)  
2.3.4. Quality of product  
According to Sebastianelli and Tamimi (2002) quality can be measured through five approaches such as  
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product – based, user – based, manufacturing – based and value – based. In term of this, product – based  
approach is based on the different elements of products to reflect quality of product (Dapkevicius and Melnikas  
2009). User – based approach is based on the customer satisfaction about the quality of products (Juran 1974). In  
manufacturing – based approach, the level of products which satisfies the standard designation of manufactures  
will be used to evaluate the quality of product (Jakpar and Na 2012; Alfin et al. 2013). Lastly, based on the value  
– based approach, quality can be seen as products meet the demands and expectations of customers (Kotler  
2000). The other research of Gronroos (1990) showed that there is a combination between technical quality and  
functional quality in products. The technical quality mentions to some factors such as colour, size, shape, etc.  
Functional quality mention to some features such as ordering, storage, etc. Dapkevicius and Melnikas (2009)  
Ying (2010) Llusar, Zornoza and Tena (2001), Shaharudin et al. (2011).  
2.3.5. Price  
According to Mahmud et al (2013), the price paid by the customer has close relationship with customer  
loyalty. If the price does not match the quality and service which customer get, it will lead to customer  
dissatisfaction. In marketing literature, price is seen as one of the most flexible marketing mix elements which  
can be quickly changed (Dovaliene and Virvilatite, 2008). Most of customer, when they estimate the value of  
product or service, they always think about price (Cronin et al., 2000 and Virvilaite 2008; (Molina et al., 2007;  
Jamal, 2004 and Banyte, 2008; (Consuegra, Molina and Esteban 2007; Bolton et al., 2003  
2.3.6. Service quality  
In the past research, there are many definitions about service quality such as Caruana (2002); Kheng et al.  
(2010). According to (Mahmud, Jusoff and Hadijah 2013), service quality was defined as “the overall evaluation  
of a specific service firm that results from comparing that firm’s performance with the customer’s general  
expectations of how firms in that industry should perform”. Service quality includes ten dimensions such as  
tangible, reliability, responsiveness, communication, credibility, security, competence, courtesy, understanding  
the customer and access (Mahmud, Jusoff and Hadijah 2013).  
3. Research methodology  
In this study, the author will explore factors, which effect on relationship between Vietnamese textile  
companies and their customers. In literature review, the author decided to choose six factors which effect on this  
relationship. Therefore, these factors including trust, commitment, the product quality, the service quality,  
communication and price were identified.  
3.1 Research hypotheses  
H1: There is a positive correlation between trust and customer relationship  
H2: There is a positive correlation between commitment and customer relationship  
H3: There is a positive correlation between quality of product and customer relationship  
H4: There is a positive correlation between service quality and customer relationship  
H5: There is a positive correlation between communication and customer relationship  
H6: There is a positive correlation between price and customer relationship  
Trust  
Commitment  
Customer relationship  
Product quality  
Service Quality  
Communication  
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3.2 Measuring scales development  
There will have a combination between quantitative research and qualitative research. The quantitative  
research is very useful to carry out empirical investigation of factors which effect to customer relationship while  
the qualitative method is used to exploring determinants affecting customer relationship. By using the  
quantitative research method, the weight of each factor will be assessed in specific sample and the results will be  
simplified. Firstly, through qualitative research there are many factors which effect on customer relationship will  
be shown. However, these factors will be evaluated to choose the most appropriate variables for the research  
concept by using Cronbach's alpha and Exploratory Factor Analysis (EFA). The most important condition to  
carry out Exploratory Factor Analysis (EFA) is questionnaire. In this dissertation, questionnaire will be designed  
by basing the research model and these questions will be sent to members of VINATEX as well as their  
customers. The data will be collected and will be analyzed by using software SPSS (Statistical Product and  
Service Solution) - version 21.0. After that, Confirmatory Factor Analysis (CFA) will be used to have further test  
scale. Finally, the conceptual model and hypothesis will be tested by using software namely AMOS (Analysis of  
Moment Structures) version 21.0. To carry out qualitative research, the variable will be developed before  
conducting survey.  
Trust (TRU)  
Trust will be abbreviated to TRU. In this research, author will apply the theory of Kumar, Scheer and  
Steenkamp (1995), who explored the trust scale with ten observed variables. In their research, they use five  
variables to evaluate the level of partner's honesty and reliability; these other variables were used to calculate  
how their partners care about their benefits. However, in this research author will build 6 variables.  
(1) TRU1: The Vietnamese textile company is already to support to customers when they need.  
(2) TRU2: Vietnamese textile company always cares about benefits of customers when they make decision  
which relate to their textile products.  
(3) TRU3: Vietnamese textile company always listens and shares the difficulties with their customers when  
they have some difficulties which effect to the collaboration between two sides.  
(4) TRU4: Customers always care about the level influencing of decisions as well as actions which come  
from Vietnamese textile company.  
(5) TRU5: Vietnamese textile company always gives the right information for customers.  
(6) TRU6: Vietnamese textile company always keep their promise with customers  
Commitment (CMM)  
Commitment will be abbreviated to CMM. Commitment scale is evaluated through three variables, which  
clarify the nature and length of commitment (Kumar, Scheer and Steenkamp, 1995). Three variables will be  
described as:  
(7) CMM 1: Customers hope that the relationship between them and Vietnamese textile company will be  
lasted in long time.  
(8) CMM 2: Customers hope that the relationship between Vietnamese textile company and them will be  
closer in many operations.  
(9) CMM 3: Customers believe that they are already to invest and develop their business in the relationship  
with Vietnamese textile company.  
The Product Quality (TPQ)  
Product quality will be abbreviated to TPQ. It can be seen that product quality has an important role to  
business relationship. Quality of product effects to loyalty of customer and is one of competitive advantage  
sources. In this study, author will explore the influencing of product quality to customer relationship base on the  
research of Ulaga and Eggert (2006) which measured influencing of product quality with five variables:  
(10) TPQ 1: Vietnamese textile company usually supplies high quality products to customers  
(11) TPQ 2: Vietnamese textile company always affords requirements about quality of products from  
customers.  
(12) TPQ 3: Customers always trust the quality of products from Vietnamese textile company.  
(13) TPQ 4: Customers rarely reject products from Vietnamese textile company.  
(14) TPQ 5: The quality of products from Vietnamese textile company is always stable.  
The Service Quality (TSQ)  
Service quality will be abbreviated to TSQ. The quality of service is very important in improving relationship  
between customers and suppliers. This research will base on the research of Lages, Lages and Lages (2005),  
Kheng et al. (2010) and Navaratnaseelan and P.Elangkumaran (2014) to evaluate effect of Service quality to  
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customer relationship.  
(15) TSQ 1: Vietnamese textile company supply the reliable quality service to customers  
(16) TSQ 2: Customers always satisfy with responsiveness from Vietnamese textile company  
(17) TSQ 3: Customer rarely complain about the quality of service of Vietnamese textile company because  
they have the empathy with Vietnamese textile company  
(18) TSQ 4: Vietnamese textile company always gives the assurance to customers for unexpected case.  
Communication (COM)  
Communication will be abbreviated to COM. The communication scale evaluated the frequency of two  
partners communicate each other (Menon et al., 1999). Thus, it reflects nature and degree of communication in  
relationship between two parts. The effect's degree of communication on customer relationship was measured by  
Lages, Lages and Lages (2005). In this research, author will base on research of Lages, Lages and Lages (2005)  
to evaluate the influencing of communication to customer relationship with three variables.  
(19) COM1: Vietnamese textile company always exchanges information with customers.  
(20) COM2: Vietnamese textile company and customers always share their goals as well as their  
expectations.  
(21) COM3: Vietnamese textile company and customers promise to share adequate and accurate information.  
Price of Products (PP)  
The price of product has big influencing to customers. One of the most important problems which customers  
care is the stability of price, the equitableness of price when suppliers commit to supply. Base on the research  
of (Virvilaite, Saladiene and Skindaras 2009), author will evaluate the effect of price to customer  
relationship.  
(22) PP 1: Vietnamese textile company supplies its products to customers with appropriate price  
(23) PP 2: Vietnamese textile company supplies a fair price with all customers  
(24) PP 3: Customers recognize that the price from Vietnamese textile company is stable.  
Relationship between Vietnamese textile company and customers (CR)  
Relationship between Vietnamese textile company and customers will be abbreviated to CR. Customer  
relationship can be understood as relationship between Vietnamese textile company with its customers. In this  
research, author will base on the research of Lages, Lages and Lages (2005) to show these relationships are long  
or short with 6 variables.  
(25) CR1: Customers believe that the relationship between them and Vietnamese textile company in long  
term will bring many benefits to them.  
(26) CR2: Customers believe that the sustainable relationship between them and Vietnamese textile company  
is very important.  
(27) CR3: Customers will concentrate on long - term target in this relationship.  
(28) CR4: Customers are already to share some benefits to support Vietnamese textile company in long -  
term.  
(29) CR5: Customers believe the relationship between them and Vietnamese textile company is their success.  
(30) CR6: The results of collaborative relationship in short-term are good; therefore, they want to have  
collaboration in long-term.  
3.3 Sampling  
The empirical research focuses on the factor, which effect on customer relationship. Therefore, the  
respondents of the research survey are the Vietnamese textile companies and buying companies in Vietnam. The  
buyers in this case can be the processers, wholesalers/distributors, retailers and exporters of textile.  
The sample size depends on the data analysis methodology. This study bases on Exploratory Factor Analysis  
(EFA) method to decide the sample size. According to Hatcher (1994), the sample size in EFA should be at least  
5 times as many as the total number of variables, or can be a minimum of 100 respondents. Thus, the preliminary  
respondent sample of this study is 120.  
4. Disscussion and finding  
Descriptive statistics can be seen as the most popular analysis in academic research. The descriptive statistics  
supplies the preliminary analysis for almost all comparative quantitative studies (Breiman 2003). In this study,  
descriptive statistics will be used to carry out preliminary analysis for all variables which will be used for deeper  
analysis. By this way, some issues such as the mean, maximum, minimum and standard deviation between  
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variables will be compared. Table 1 showed the output of descriptive statistics through SPSS version 21.  
Table 5. Descriptive Statistics  
According to the table 1, it can be easily seen that there are 120 responses and the means of 30 variables of  
this research are greater than 3; therein, the greatest mean is CMM3 (4.99) and the smallest mean is TSQ3  
(3.18). As a result, the author believed that all variables influence together and are appropriate for this research.  
After that, from the last result of Cronbach Alpha and EFA, the author will carry out the further test for scales  
through Confirmatory Factor Analysis (CFA) by using software namely AMOS version 21.  
In sum, the result of CFA showed that the research model satisfy the requirements such as reliability,  
unimensionality, convergent validity and discriminant validity. The result of SEM will be shown in Figure 3.  
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Fig. 6. SEM result with using AMOS 21.0  
SEM is a linear structure model which is used to test the research model and hypotheses. In SEM, there are  
many statistic techniques such as CFA, Path analysis, Causal modeling with Latent variable, Analysis of  
Variance, Multiple Linear Regression. The standardized structural result of the research model is presented in  
figure3. Based on the values about p-value index; CMIN/df; GFI; CFI and TLI; RMSEA, it can be seen that p-  
value index = .000 satisfied the condition (p< 0.5). The CMIN/df = 1.672 satisfied the condition (<2); The GFI  
(0.996), CFI (0.954), and TLI (0,937) are greater than the condition (>0.9). Thus, this theoretical framework is  
very appropriate with market data.  
Based on the table 2 about the unstandardized structural path in the model, it can be seen that all the  
relationship between TRU, CMM, TPQ, TWQ, COM, PP and CR in the research model have p<0.5. As a result,  
both of these relationships are very important; these factors effect on the customer relationship. In other words,  
the hypotheses H1, H2, H3, H4, H5 and H6 are accepted in the research model.  
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Table 2. The unstandardized structural path in the model  
Table 3. The standardized regression weights of the model  
Standardized Regression Weights  
Estimate  
CR  
CR  
CR  
CR  
CR  
CR  
<---  
<---  
<---  
<---  
<---  
<---  
TRU  
CMM  
TPQ  
TSQ  
COM  
PP  
.291  
.178  
.358  
.175  
.369  
.361  
Based on Table 3 about the standardized regression weights of the model, it can be seen that there is a  
positive correlation between trust, commitment and customer relationship. It means that the hypothesis H1, H2  
are accepted because hypothesis H1 has β = 0.291, p < .001 and hypothesis H2 has β = 0.178, p < .001. Also, the  
hypothesis H3 and H4 are also accepted because they got the support from the data of H3 with β = 0.358, p <  
.001and data of H4 with β = 0.175, p < .001. Finally, hypothesis H5 and H6 also have the correlation with  
customer relationship. This is described by data (H5: β = 0.369, p < .001) and (H6: β = 0.361, p < .001). Therein,  
the relationship between trust (TRU), the product quality (TPQ), the communication (COM) and the price (PP)  
have highest β values.  
In conclusion, through the results, which were described above, it can be believed that all hypotheses are  
accepted. As a result, there is an important conclusion as these factors such as trust, commitment, the product  
quality, the service quality, the communication and the price have a positive correlation with customer  
relationship. Especially, these factors such as trust, the product quality, the communication and the price have  
the most significant effects on customer relationship. These results are very important for Vietnamese textile  
companies to introduce solutions to maintain good relationship with customers.  
5. Conclusion  
In this study, with clear research objectives, the author was step by step to resolve these issues. For this  
research, the author will show the relationship between customer relationship of Vietnamese textile companies  
and competitive advantage; after that, exploring the factors effect on customer relationship of Vietnamese textile  
companies. Therefore, the solutions will be introduced to enhance the competitive advantage for Vietnamese  
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textile companies through improving this relationship between Vietnamese textile companies and their  
customers. The author introduced six recommendations, which help Vietnamese textile companies can improve  
the customer relationship in order to enhance the competitive advantage for Vietnamese textile companies. For  
Trust, the author concerned that it will motivate the relationship between Vietnamese textile companies and  
their customers better and longer. The trust cannot achieve in a short time or in one transaction; it requires the  
attempts of both sides in long time and in many transactions. Thus, to create the trust between both sides,  
Vietnamese textile companies and their customers should care about some issues such as: the benefit of each  
side, listen and share difficulties as well as right information together; especially, they have to respect promise of  
two sides. For commitment, both two sides should concentrate on the long – term value of their relationship. In  
addition, buying organizations and selling organizations should respect together as well as creating comfortable  
condition for each side. For the Quality of Product, Vietnamese textile companies should focus on the quality  
of products and the stability of products. When exporting textile products to hard markets, which have high  
requirements about the products, Vietnamese textile companies should care about the quality standard of  
products. Therefore, Vietnamese textile companies should invest to technology as well as training education to  
produce high quality products. Vietnamese textile companies should apply a standard product's process. For the  
Quality of Service, each companies should build a customer service center to resolve the requirements and  
complaints of customers. In this time, there are many customer service management frameworks in the world;  
Vietnamese textile companies should apply some appropriate frameworks to satisfy customers. For  
Communication, Vietnamese textile companies should give the appropriate communication channels which  
both sides can approach the right information on time and frequency. Besides the keeping contact through email,  
phone call; the website is one of the best choices to communicate by creating the forum where customer can  
share their feelings about the products or services. For Price, Vietnamese textile companies should build a  
specific price’s list to introduce to their customers and the price list should be up – to - date. The price strategies  
such as discount when customers buy a large number of products should be public and fair with all customers. If  
there is any change in price, Vietnamese textile companies should give appropriate adjustments, which help  
customers to accept and to adapt. The author believes that this research is pioneer in Vietnamese textile field and  
these outcomes will bring new opportunities for Vietnamese textile companies to increase competitive  
advantage.  
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