Footwear industry unveils strategy

The Vietnam Leather and Footwear Association (Lefaso) has submitted to the Government a strategy to develop the sector from now till 2020 with a vision for 2015.

Lefaso President Nguyen Duc Thuan said the strategy, which focuses on the support and material industries, aims to end the sector’s dependence on foreign materials and technologies, and shift it from sub-contracting to direct contracting.

Under the strategy, the sector will need VND18.8 trillion (US$989 million) to produce shoe trees and footwear models, and expand the production of materials including leather and leatherette.

The plan is expected to help the sector earn US$8.5 billion from exports by 2015 and US$11 billion by 2020 by raising the local content to 65-75 percent from the current 50 percent.

Thuan explained that the strategy was formulated because the sector has been suffering a serious shortage of materials for many years due to the lack of a support industry.

The country currently has only 30 enterprises, including five with foreign investment capital, that produce tanned leather, the main material used by the footwear sector. These enterprises can meet only 30 percent of domestic footwear enterprises’ demands. – Vietnam Plus

Tags: Vietnam Footwear Industry