Shoemakers target higher exports

The footwear industry has targeted a 10-15 per cent growth in exports this year, worth US$4.5-5 billion, said chairman of the Viet Nam Leather and Footwear Association (Lefaso) Nguyen Duc Thuan.

The footwear industry last year faced a decrease of roughly 13 per cent in export turnover over the prior year due to the global economic downturn.

Despite the 10 per cent anti-dumping duties placed on Vietnamese footwear, the EU would remain the largest export market this year, accounting for roughly half or its export earnings, Thuan said. However, domestic footwear producers would have to accept less profits from the market due to the impact of the duties.

Another 30 per cent of the industry’s exports will go to the US while the remainder to Mexico, Canada and Russia.

However, to meet the target, the Ministry of Industry and Trade should aid the development of recognisable international trademarks, and focus on training designers said Thuan.

This will help the industry create higher added value instead of acting only as sub-contractors for foreign footwear producers as currently, he added.

Thuan said that Thailand, South Korea and Taiwan had seen success in the development of their own footwear industries thanks to the establishment of the national trademarks.

He also asked the ministry to help the industry in setting up material accessory production centres, especially for tanning.

Currently, although a number of foreign apparel accessories producers have so far expressed their desire to invest in Viet Nam, many cities and provinces nationwide have not welcomed the establishment of industrial zones specialising in weaving dyeing and tanning in their localities.

“This has caused the footwear industry to face difficulties in taking the initiative in material sources while the industry currently still has to import up to 80 per cent of tanned leather to meet the industry’s demand,” Thuan said.

The industry currently includes nearly 500 enterprises, however, export turnover mainly comes from 50 major producers with more than 10,000 employers.

The World Shoe Association said that Viet Nam’s footwear industry still had distinct advantages to further develop until the country’s income per capital reaches more than $7,000.

The footwear industry last year faced a decrease of roughly 13 per cent in export turnover over the prior year due to the global economic downturn. Due to the reduction in many markets including the US and the EU, the industry last year earned only about $4.1 billion from exports.

VietNamNet/Viet Nam News

Tags: Vietnam footwear export, Vietnam Footwear Industry