Vietnam expects 10 percent rise in leather, shoe exports
Vietnam’s leather and footwear industry expects to reach a total export value of 18 billion USD this year, up 10 percent from last year, said the Vietnam Leather, Footwear and Handbag Association.
Illustrative image (Source: VNA)Hanoi (VNA) – Vietnam’s leather and footwear industry expects to
reach a total export value of 18 billion USD this year, up 10 percent from last
year, said the Vietnam Leather, Footwear and
Handbag Association (Lefaso).
According to Lefasco, there are plenty of chances for expanding exports given that orders for footwear and bag processing may be diverted from factories in China that have cut back on incentives for investment in garment and footwear manufacturing to focus on high technology.
Another promising element is the European Union-Vietnam free trade agreement, which will take effect in 2018 and afford Vietnamese footwear makers more opportunities to boost exports.
To achieve this year’s target, the leather and footwear sector needs to boost technological innovation, invest in new equipment and modernise existing equipment, expand the production scale of domestic enterprises to increase productivity as well as improve the quality of products, Lefasco said.
Lafesco reported that the sector raked in 16.2 billion USD from export last year, up 8.8 percent from 2015. Of which, 13 billion USD came from footwear and the remaining was from handbags and leather items, marking respective annual increases of 8.2 percent and 11.1 percent.
According to Lefaso, leather and footwear exports last year faced many difficulties as orders from the EU market plummeted and the sector’s export to ASEAN markets was also unstable.
Since January 1, 2016, the tax levied on footwear and leather handbags and items circulated within the ASEAN bloc have been reduced to 0 percent, leading to stiffer competition from regional rivals.
Vietnamese enterprises also confronted obstacles due to the lack of capital and increasing input costs, which significantly affected the footwear sector’s export. Footwear currently ranks fourth and suitcase-bag-briefcase ranks tenth among Vietnam’s top 10 foreign currency earners.
The sector’s manufacturing index in 2016 rose a modest 3.7 percent year-on-year, much lower than the 17.4 percent and 22 percent growth in 2015 and 2014, respectively.-VNA
According to Lefasco, there are plenty of chances for expanding exports given that orders for footwear and bag processing may be diverted from factories in China that have cut back on incentives for investment in garment and footwear manufacturing to focus on high technology.
Another promising element is the European Union-Vietnam free trade agreement, which will take effect in 2018 and afford Vietnamese footwear makers more opportunities to boost exports.
To achieve this year’s target, the leather and footwear sector needs to boost technological innovation, invest in new equipment and modernise existing equipment, expand the production scale of domestic enterprises to increase productivity as well as improve the quality of products, Lefasco said.
Lafesco reported that the sector raked in 16.2 billion USD from export last year, up 8.8 percent from 2015. Of which, 13 billion USD came from footwear and the remaining was from handbags and leather items, marking respective annual increases of 8.2 percent and 11.1 percent.
According to Lefaso, leather and footwear exports last year faced many difficulties as orders from the EU market plummeted and the sector’s export to ASEAN markets was also unstable.
Since January 1, 2016, the tax levied on footwear and leather handbags and items circulated within the ASEAN bloc have been reduced to 0 percent, leading to stiffer competition from regional rivals.
Vietnamese enterprises also confronted obstacles due to the lack of capital and increasing input costs, which significantly affected the footwear sector’s export. Footwear currently ranks fourth and suitcase-bag-briefcase ranks tenth among Vietnam’s top 10 foreign currency earners.
The sector’s manufacturing index in 2016 rose a modest 3.7 percent year-on-year, much lower than the 17.4 percent and 22 percent growth in 2015 and 2014, respectively.-VNA
You should also see
PM hosts Chairman of Russian Federal Bar Association
Prime Minister Pham Minh Chinh spoke highly of cooperation between the Russian Federal Bar Association (RFBA) and the Vietnam Lawyers’ Association (VLA) while receiving RFBA Chairman Sergey Stepashin, who is also former Prime Minister of Russia, in Hanoi on April 23.
See more
Business
HCM City seeks to draw remittances in infrastructure
A seminar aimed at channeling overseas remittances into infrastructure took place in Ho Chi Minh City on April 23, given that remittances to the city reached 9.46 billion USD in 2023, nearly three times higher than foreign direct investment (FDI), according to official statistics.
Sci-Tech
FPT, NVIDIA ink MoU to build 200 million USD AI factory
Vietnam’s tech giant FPT plans to build a 200 million USD artificial intelligence (AI) factory using Nvidia's graphics chips and software, as announced on April 23 in a comprehensive strategic partnership with NVIDIA.
Business
Lao Cai province calls for more Japanese investments
The advantages and potential of Vietnam’s northern border province of Lao Cai were introduced to Japanese firms at an investment and tourism promotion conference in Tokyo on April 23.
Business
Vietnam’s economy shows gradual recovery: WB’s report
Vietnam's economy is showing mixed signs of recovery in early 2024, with growth forecast to reach 5.5% in 2024 and gradually rise to 6.0% by 2025, according to the latest World Bank Taking Stock bi-annual economic update released on April 23.
Business
Tra fish export to UAE jumps 67% in Q1
Vietnam’s tra fish export to the United Arab Emirates (UAE) reached more than 7 million USD in the first quarter of this year, a rise of 67% against the same period last year, statistics of the General Department of Customs showed.
