Domestic and foreign-invested enterprises (FIEs) in the leather andfootwear sector continue to experience impressive growth, rankingVietnam the second largest global exporter of footwear, radio The Voiceof Vietnam (VOV) reported.
In the first six months of the year,the nation’s footwear exports jumped 17.8 percent year-on-year to 4.8billion USD, according to the Vietnam Leather and Footwear Association(Lefaso), and economists are now forecasting them to surpass the 11billion USD benchmark by the end of the year.
The reboundingeconomies in the US and the EU are one of the key factors giving rise tothe increased global demand. The footwear sector is experiencing butan equally important factor is the free trade pacts that are poised forsignature.
The Trans-Pacific Partnership (TPP) Agreement andVietnam-EU Free Trade Agreement (VEFTA) are likely to be signed laterthis year or early next year, and the optimism they are generating hastouched off tremendous investment into the leather and footwear sector.
Numerousforeign invested projects are sprouting up throughout country installedwith the latest state-of-the-art technologies, modernised andstreamlined facilities that are contributing directly to raising thesectors added value in the production process.
Foreign materialsuppliers are pouring huge investment into the sector forging theirniches in the Vietnamese market, and are aggressively seizing everyopportunity to cooperate with Vietnamese partners.
Withunanimity, they are reporting they consider 2014 as a pivotal year asthey jockey to lay the foundation and get in position to benefit fromthe increased trading activities in the future once the TPP and VEFTAcome into effect.
“Vietnam is the centre of focus by materialsuppliers at the 16th International Shoe and Leather Expo opened in HoChi Minh City on July 16,” Tran Vi Co, Director of Hien Dat Exhibitionand Trading Services Company.
The number of foreign participantsat the expo has increased by nearly 20 percent compared to last year andthis year’s event has attracted a remarkable 150 businesses from 18countries and territories, he added.
The opportunities are real,but whether domestic businesses will rise to the occasion and seize themremains an open question, he concludes.
Lefaso President NguyenDuc Thuan emphasised that the increase in the use of domestic materialshas been drawing much attention. The leather sector has usually usedonly 30 percent domestic materials.
In the future, this willincrease significantly, Thuan said, adding the country is developing twoleather industrial zones in two main regions. Furthermore, smaller IZsare in various stages of development in key regions to produce othermaterials, such as synthetic leather, shoes’ soles, and decoratingmaterials.
The HCM City is going through a revolutionarytransformation into a centre for supplying and exchanging materials forthe whole sector.
The sector has set a target of using 100percent of domestic tanned leather by 2020 and 50 percent of syntheticleather and 70 percent of shoes’ soles by 2050, Thuan said.
Currently,Lefaso devised measures to help the sector develop sustainably in thefuture. Training is one of its priorities. Accordingly, a humanresource-training centre will be set up in the southern region in 2015.-VNA
In the first six months of the year,the nation’s footwear exports jumped 17.8 percent year-on-year to 4.8billion USD, according to the Vietnam Leather and Footwear Association(Lefaso), and economists are now forecasting them to surpass the 11billion USD benchmark by the end of the year.
The reboundingeconomies in the US and the EU are one of the key factors giving rise tothe increased global demand. The footwear sector is experiencing butan equally important factor is the free trade pacts that are poised forsignature.
The Trans-Pacific Partnership (TPP) Agreement andVietnam-EU Free Trade Agreement (VEFTA) are likely to be signed laterthis year or early next year, and the optimism they are generating hastouched off tremendous investment into the leather and footwear sector.
Numerousforeign invested projects are sprouting up throughout country installedwith the latest state-of-the-art technologies, modernised andstreamlined facilities that are contributing directly to raising thesectors added value in the production process.
Foreign materialsuppliers are pouring huge investment into the sector forging theirniches in the Vietnamese market, and are aggressively seizing everyopportunity to cooperate with Vietnamese partners.
Withunanimity, they are reporting they consider 2014 as a pivotal year asthey jockey to lay the foundation and get in position to benefit fromthe increased trading activities in the future once the TPP and VEFTAcome into effect.
“Vietnam is the centre of focus by materialsuppliers at the 16th International Shoe and Leather Expo opened in HoChi Minh City on July 16,” Tran Vi Co, Director of Hien Dat Exhibitionand Trading Services Company.
The number of foreign participantsat the expo has increased by nearly 20 percent compared to last year andthis year’s event has attracted a remarkable 150 businesses from 18countries and territories, he added.
The opportunities are real,but whether domestic businesses will rise to the occasion and seize themremains an open question, he concludes.
Lefaso President NguyenDuc Thuan emphasised that the increase in the use of domestic materialshas been drawing much attention. The leather sector has usually usedonly 30 percent domestic materials.
In the future, this willincrease significantly, Thuan said, adding the country is developing twoleather industrial zones in two main regions. Furthermore, smaller IZsare in various stages of development in key regions to produce othermaterials, such as synthetic leather, shoes’ soles, and decoratingmaterials.
The HCM City is going through a revolutionarytransformation into a centre for supplying and exchanging materials forthe whole sector.
The sector has set a target of using 100percent of domestic tanned leather by 2020 and 50 percent of syntheticleather and 70 percent of shoes’ soles by 2050, Thuan said.
Currently,Lefaso devised measures to help the sector develop sustainably in thefuture. Training is one of its priorities. Accordingly, a humanresource-training centre will be set up in the southern region in 2015.-VNA
