This paper seeks to look at Vietnam’s economy, financial sector, and political sector in respect to the textile industry. In an attempt to evaluate the feasibility of entering a foreign market, we focus our paper on a mid-sized company called Augusta Textile Company. This paper seeks to evaluate Vietnam’s potential for investment, particularly in the textile industry. While the company seeks to increase revenues and keep costs of production low, the company must look to expand to growing markets. However, various risks must be taken into consideration, as they can be great barriers to entry. The company looks to expand with the least financial risk, but greatest potential output and revenue. In evaluating the textile industry in Vietnam, as well as potential modes of entry, we may conclude a recommendation for Augusta Textile Industry’s future potential expansion.

Introduction
Country Basics Vietnam is formally known as the Socialist Republic of Vietnam and is located in the South China Sea. It is the thirteenth most highly populated country in the world (Hossain, 2010). The current population of Vietnam is estimated at about 90.4 million (The Heritage Foundation, n.d.). There are 54 officially recognized ethnic groups in Vietnam, but the majority are Viet (also known as “Kinh”), comprising of about 86% of the total population. Other significant ethnic groups are the Tay, Thai, Muong, Khome, and Hoa. The vast majority of the Vietnamese population speaks the Vietnamese language, but French is spoken on a small scale. English is the second language in larger metropolitan areas, especially in areas like Hanoi and Ho Chi Minh City (“An Investment Guide,” 2011). Vietnam is divided into 59 provinces and on a cultural level, there are three Vietnams associating with three different Vietnamese dialects: the North, the South, and the Centre. The division reflects just