Footwear production line in Binh Duong province (Photo: VNA) Overall exports, mainly of aquatic products, textile-garment, footwear, andfarm produce, were worth nearly 4.8 billion USD.
The importing markets were mostly countries with ports and distribution andtranshipment centres such as Belgium, Germany, Netherlands, and France.
The EVFTA, which took effect in August last year, has opened up great exportopportunities to a market with a GDP of 15 trillion USD for Vietnamese companies.
The EU was Vietnam's fourth largest market with purchases of 43.7 billion USD lastyear.
To enjoy the tariff preferences, leather goods and footwear need to comply withthe rules of origin and get a EUR.1 Certificate of Origin.
Some 32 – 34 percent of exports benefited by getting the certificate,indicating that Vietnamese businesses and goods are increasingly capitalisingon concessionary tariffs in FTA partner markets, the Ministry of Industry andTrade said.
It said that between August 1 last year, when the EVFTA took effect, and April4, authorised agencies in Vietnam issued 127,300 certificates of origin toenable exports worth nearly 4.8 billion USD.
The country has become the “footwear factory” of the world, while its ownmarket has a population of more than 96 million.
But the interruption of the global supply chain by the Covid-19 pandemic hascaused alarm in the Vietnamese leather and footwear industry since it isheavily dependent on raw material imports.
To develop sustainably and make the most of tariff incentives and opportunitiesbrought by the EVFTA and Comprehensive and Progressive Agreement forTrans-Pacific Partnership, leather and footwear businesses need to developdomestic sources or diversify foreign sources.
Sixty percent is imported from China, according to Phan Thi Thanh Xuan, generalsecretary of the Vietnam Leather, Footwear and Handbag Association (Lefaso).
Many businesses have started to look for raw materials in other markets such asIndia, Europe, Singapore, and Japan.
The pandemic remains a major hurdle, experts said, but if enterprises work hardto find partners and improve their competitiveness, the opportunities remainhuge./.
VNA
