Vietnam: Five-month footwear export earnings up 11.4 percent

Vietnam: Five-month footwear export earnings up 11.4 percent

Vietnam earned 3.1 billion USD in footwear export in the first five months of this year, a year-on-year increase of 11.4 percent, according to the General Statistics Office.

Last month alone, export turnover reached 750 million USD due to the stability of traditional export markets and increasing orders from new importers.

In the first four months of the year, the industry enjoyed high export turnover from its traditional markets. The US took the lead with turnover of 755 million USD, followed by the UK with 149 million USD, Belgium with 140 million USD, Japan with 121 million USD and China with 114 million USD.

Shoe producers had stable orders, with many big enterprises receiving orders for up to the third quarter.

According to the Vietnam Leather and Footwear Association (LEFASO), the Trans-Pacific Partnership Agreement (TPP) negotiations would bring about opportunities for the Vietnamese leather and footwear industry to penetrate the large market…

However, the association said the TPP would also bring about challenges for Vietnam ‘s shoes industry, as the agreement has a compulsory localisation rate for raw materials.

Domestic businesses have a low localisation rate of 40 percent, as the industry depends highly on imported materials.

The Ministry of Industry and Trade encouraged footwear businesses to increase their investment in material production, modern and environmentally friendly technologies.