The Ministry of Industry and Trade (MoIT) has recommended the footwear sector capitalise on ongoing regional and global production transition trends to achieve higher growth.
It says the footwear industry must develop material production and focus on seizing the advantages of modern technology while keeping environmental concerns in mind.
The Ministry also stresses the need for administrative reform—especially in tax and customs—and for promoting local footwear product trademarks in overseas markets. Expanding markets and distribution networks are also required if export activity is to be boosted, the MoIT says.
Economists say that Vietnam’s World Trade Organisation membership has made it an ideal base for footwear producers as trade barriers have gradually been removed. However, the local footwear sector is still burdened with disadvantages like poor pattern designs, high production costs, imported material dependence, and small-scale production.
According to the MoIT’s latest report, Vietnam earned US$2.25 billion from footwear exports in the past four months, up 9 percent from a year earlier.