The signed and pending free trade agreements (FTAs) will not onlyprovide benefits for the Vietnamese footwear and bag sector, but also anumber of challenges due to export goods now requiring clear informationon product origin, a conference in Ho Chi Minh City heard on July 15.
In the past five years, the Vietnamese Government has activelynegotiated FTAs with numerous countries, with most of them impactingsignificantly on the development of the footwear sector, including theTrans-Pacific Partnership agreement and FTAs with the European Union andthe Eurasian Economic Union.
According to the DeputyHead of the Ministry of Industry and Trade’s Import-Export DepartmentTran Thanh Hai, the footwear sector will be a priority during thenegotiation process since it is one of Vietnam’s three key exports tothe EU and the US.
In 2014, these two marketsaccounted for 67 percent of Vietnam’s total exports. However, the exporttax currently imposed on footwear by the US remains high at 60 percent,and 3-17 percent in the EU.
Once the agreements aresigned, export tax could be eliminated entirely, opening up moreopportunities for the sector to increase its exports and expand itsmarket shares, Hai said.
Additionally, the Associationof Southeast Asian Nations (ASEAN), which includes Vietnam, has alsosigned FTAs with China, Japan, the Republic of Korea, India, Australiaand New Zealand, and is currently negotiating a Regional ComprehensiveEconomic Partnership (RCEP) with the six aforementioned countries. Thiswill establish a free trade area comprising 16 states and a totalpopulation of over 3 billion. As such, Vietnam will also have the chanceto boost its exports to these countries.
DeputyMinister of Industry and Trade Ho Thi Kim Thoa suggested businessesanticipate and grasp the opportunities provided by the signed andpending FTAs to expand their export markets. Furthermore, Vietnamesefootwear businesses should observe the domestic market, since supplyonly meets 50 percent of demand at present.
Accordingto the ministry, the sector’s export turnover is estimated at 7.35billion USD in the first half of 2015, up by 18 percent compared to thesame period last year. Vietnam’s footwear export value totalled 5.9billion USD and bag exports accounted for the remaining 1.45 billionUSD.
Vietnam is the world’s third largest exporter ofleather and footwear products, following China and Italy. Vietnameseproducts are available in more than 50 countries and territoriesthroughout the world.
The ministry approved a masterplan on the development of the sector until 2020 with a vision to 2030,with a focus on developing the support industry. Accordingly, severalfootwear and material processing industrial zones and complexes will bebuilt with the purpose of providing materials and increasing thesector’s competitiveness.-VNA
In the past five years, the Vietnamese Government has activelynegotiated FTAs with numerous countries, with most of them impactingsignificantly on the development of the footwear sector, including theTrans-Pacific Partnership agreement and FTAs with the European Union andthe Eurasian Economic Union.
According to the DeputyHead of the Ministry of Industry and Trade’s Import-Export DepartmentTran Thanh Hai, the footwear sector will be a priority during thenegotiation process since it is one of Vietnam’s three key exports tothe EU and the US.
In 2014, these two marketsaccounted for 67 percent of Vietnam’s total exports. However, the exporttax currently imposed on footwear by the US remains high at 60 percent,and 3-17 percent in the EU.
Once the agreements aresigned, export tax could be eliminated entirely, opening up moreopportunities for the sector to increase its exports and expand itsmarket shares, Hai said.
Additionally, the Associationof Southeast Asian Nations (ASEAN), which includes Vietnam, has alsosigned FTAs with China, Japan, the Republic of Korea, India, Australiaand New Zealand, and is currently negotiating a Regional ComprehensiveEconomic Partnership (RCEP) with the six aforementioned countries. Thiswill establish a free trade area comprising 16 states and a totalpopulation of over 3 billion. As such, Vietnam will also have the chanceto boost its exports to these countries.
DeputyMinister of Industry and Trade Ho Thi Kim Thoa suggested businessesanticipate and grasp the opportunities provided by the signed andpending FTAs to expand their export markets. Furthermore, Vietnamesefootwear businesses should observe the domestic market, since supplyonly meets 50 percent of demand at present.
Accordingto the ministry, the sector’s export turnover is estimated at 7.35billion USD in the first half of 2015, up by 18 percent compared to thesame period last year. Vietnam’s footwear export value totalled 5.9billion USD and bag exports accounted for the remaining 1.45 billionUSD.
Vietnam is the world’s third largest exporter ofleather and footwear products, following China and Italy. Vietnameseproducts are available in more than 50 countries and territoriesthroughout the world.
The ministry approved a masterplan on the development of the sector until 2020 with a vision to 2030,with a focus on developing the support industry. Accordingly, severalfootwear and material processing industrial zones and complexes will bebuilt with the purpose of providing materials and increasing thesector’s competitiveness.-VNA
