Footwear exports gain momentum
Vietnamese footwear exporters are looking forward to big gains this year as their revenue in the January - May period surged 11.4 % year-on-year to US$3.1 billion, a positive figure amid the global economic malaise.
According to the Vietnam Leather and Footwear Association (LEFASO), domestic footwear producers have secured a stable supply of orders. Apart from sports and canvas shoes for export, the sector is focusing on briefcases and handbags to rake in higher returns.
To earn U$9.7 billion from exports this year (10 % higher than last year’s figure), the sector is seeking more orders from South America. Domestic companies are stepping up research and development to supply footwear materials to potential partners in India and Brazil.
Notably, Vietnam was honoured with five international shoe design awards for Asia after beating 180 entries from 8 regional countries.
The rate of locally-made materials is a mere 40 %. This is expected to increase to between 60 and 65 % this year once the Trans-Pacific Partnership agreement is signed.
The Ministry of Industry and Trade (MoIT) is encouraging companies to enhance investment in materials production using environmentally friendly technology. The move is expected to put Vietnam in the top five footwear producers and exporters by 2020.
Once the Vietnam–EU Free Trade Agreement comes into effect, preferential taxes will be cut from 14.3 to zero %. From early next year, Vietnam’s footwear products destined for EU markets will enjoy tariffs in the Generalised System of Preferences (GSP).
Capitalizing on future trade agreements between Vietnam and the EU, numerous UK and German footwear exporters are seeking business opportunities in Vietnam.
The US remains Vietnam’s leading footwear and leather importer with a turnover of US$755 million, ahead of the UK (US$149 million), Belgium (US$140 million), Japan (US$121 million) and China (US$114 million).