Vietnam: Intense competition hits footwear industry

According to Ministry of Industry reports, the footwear industry’s export turnover was registered only US$1.4 billion in the first six months of the year, just 2.8 per cent higher than the same period last year.

The ministry’s experts attributed the gloomy picture to intense competition with Chinese products, as China can produce raw materials for local producers while Viet Nam has to import about 70 per cent of total raw material volume used for exports.

Some countries in the region, which were hit by last year’s tsunami are currently enjoying free import tax into the European market which has also ushered in a downturn in trading.

However, Viet Nam hopes to see an improvement in the Japanese market this year and expects to reach an export turnover to the country of more than $80 million this year, amid the total export target of $3.4 billion.

The Ministry of Trade said Japan was Viet Nam’s biggest shoe importer in Asia. Solid growth in exports to this market had been posted this year, notably a 76 per cent spurt in the first two months.

This helped Viet Nam climb to third place on the list of exporters to Japan after China and Italy.

To boost exports in the second half of this year, the ministry said that the industry has to have better designs and diversify products to meet the needs of the unique requirements in design, size and quality of Japanese customers.

VNA