Vietnam Footwear Industry Should Vie for Domestic Market amid Export Fall
Vietnamese footwear producers should shift their business strategies towards the domestic market as the sector’s export turnover is representing the negative growth due to effects from the global economic downturn.
The country’s footwear exports saw an on-year fall of 16% to only US$3.21 billion in the ten months of this year.
Experts forecast that the footwear exporters will face challenges if the European Commission gains an approval to extend anti-dumping duties on Vietnam’s shoes for 15 more months.
If approved, the EC will issue the official decision on Nov 20 and the imposition will take effect from Jan 3 2010.
Vietnamese shoes makers, thus, intend to turn back the domestic market and plan to keep up 80% of the market share by 2015.
However, the target seems to be too hard to the Vietnamese footwear industry, which is the world’s second biggest shoes exporter after China, as more Vietnamese consumers prefer foreign and illegally imported shoes.
“Domestic shoes were not as attractive as imported models but more expensive than illegally-imported shoes,†a customer was quoted.
The industry’s experts agreed to achieve its 2015 target, the industry needs to change business strategies by improving their design, cutting costs and taking distribution and advertising seriously.
Currently, approx 80% of the materials used to make shoes in Vietnam have been imported. This attributed to raise the price of shoes in Vietnam.
Tags: Vietnam business news, Vietnam Footwear Industry
Posted by VBN on Nov 20 2009. Filed under Garment Textile, Import-Export. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry
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