Footwear firms hindered by lack of materials

Many footwear firms designing products for the local market are facing severe difficulties caused by a lack of materials, especially leather, in the industry.

In a seminar last week in HCMC, 12 local companies showcased original shoe designs in a bid to encourage firms in the industry to create their own footwear products rather than just focus on contract manufacturing only.

The designs were made under the assistance of the project ‘IN_TRADE: Innovation and Trademark as a tool to successfully compete in the global market’ under MUTRAP III. The project was implemented from 2009 to 2011, sponsored by the European Commission, the Leather and Footwear Association (LEFASO), with partners from Italy and Belgium.

After joining the project, some local companies have tried to produce their own designs for the domestic market. However, they admit they have struggled to make their designs come to life due to material shortages.

Designer Do Trinh Hoai Nam from Hanoi-based Hoai Nam Fashion Co., Ltd. said in the seminar that the company started to design and make shoes. But the lack of materials makes their job impossible at times.

“Our company is small, so it’s hard to find leather for our shoe designs,” he said.

Huynh Thoai Long, vice director general of Vien Thinh Company, told the Daily at the international leather and shoes exhibition in HCMC on July 21-23 that his company has been producing shoes for the local market for more than two years. The shortage of materials, notably leather for shoe production, is one of the biggest challenges for the company, he said.

“We tried to look for leather in Vietnam, but we finally imported all leather from Taiwan. Their products are cheaper than local ones, but with the same quality. Or, they are better, with the same price,” said Long.

The problem is that the company is small, so it’s not easy to find materials when buying in small volume, he added.

According to Nguyen Thi Tong, deputy chairwoman and general secretary of the Vietnam Leather and Footwear Association (LEFASO), most material for Vietnam’s shoe production is imported from China. Material trading within the industry is now not good. Soles and some other materials are available in Vietnam, but trading is mainly between partners, not in the free market, she added.

Pham Hong Viet, director of Hanoi rubber joint stock company (Harco), said that many footwear firms in northern Vietnam were struggling.

“Harco provides soles and materials but due to shoe companies being located so far apart it’s hard to approach shoe producers. There is no planning for footwear material supply,” Viet said.

According to Lefaso, there are now more than 450 businesses producing shoes, excluding small facilities and household shoemaking enterprises.

Around 70% are contract manufacturers who earn about 15% from the production process. They import most of the materials, with designs and technical management being performed by their buying partners – SGT

Tags: Vietnam Footwear, Vietnam Footwear Exports