HANOI: Vietnam’s leather and footwear industry will continue to develop in the coming years, according to the Vietnam Leather, Footwear and Handbag Association (Lefaso).
Speaking at the two-day Vietnam Footwear Summit which opened in HCM City yesterday, Diệp Thành Kiệt, Lefaso’s deputy chairman, said exports of footwear and bags increased to US$18.1 billion last year from $16.2 billion in 2016.
“This is a big opportunity for the industry. If we continue to promote the export of high-value products, the industry will develop strongly.”
Replying to a question on the impact of the US’s withdrawal from the TPP on the footwear industry, he said this would not affect Vietnam’s footwear exports to the US much.
Matt Priest, president and CEO of the Footwear Distributors and Retailers of America, said the US imported 2.39 billion pairs of footwear last year.
“Per capita spending on footwear climbed to a record last year,” he said.
China was the biggest exporter to the market, but China’s share is declining and Vietnam’s is increasing, he added.
Talking about the EU- Vietnam FTA, Nguyễn Thị Xuân Thùy, a researcher at the Vietnam Institute of Industrial and Trade Policy and Strategy, said all tariff lines on leather, cases and bags and 37 per cent of tariffs on footwear would be removed immediately when the FTA comes into effect.
To enjoy tariff incentives, the products must meet rules of origin and technical barriers to trade commitments with regard to labelling, conformity assessment, and market surveillance, increasing compliance costs, she said.
Low cost labour alone would not ensure success, and firms need to continue to drive efficiency and digital connectivity among others, he said.
Delegates said proper use of automation could eliminate redundant workers and make factories much more efficient and profitable.
The industry’s development plans target rapid, sustainable development and better use of the country’s FTAs to expand exports.
It plans to restructure production to add value to products, increase local content, improve designs, and focus on medium- and high-quality products for the domestic and export markets.
