Vietnam Shoe Industry Targets US$16.5B Exports
The Leather and Shoe Research Institute has released a long-term development draft in which the industry is expected to earn US$16.5 billion from exports by 2020 if the GDP growth is maintained at 7.5%.
This year, leather shoe exports and other leather products would reach US$6.2 billion if the GDP growth rate and GDP-per-capita was 6.5% and US$1,237 respectively, the draft said.
Deputy Minister of Industry and Trade Bui Xuan Khu, however, became suspicious of the draft’s feasibility because the sector’s export turnover fell 13% from a year earlier to US$4.1 billion in 2009.
Khu mentioned difficulties in materials for the sector as most of them are imported. Khu also instructed the sector’s development draft must focus on both the domestic demand and the exports.
Besides, the Vietnam Leather and Footwear Association (Lefaso) has targeted an export growth of 10%-15% to US$5 billion this year.
Lefaso chairman Nguyen Huu Thuan said the sector would maintain its market share of 14% in the world and gradually occupy 50%-70% of the local market.
The association has proposed the Ministry of Industry and Trade to support domestic producers in developing their distribution channels and brand names, Thuan added.
Vietnam now has nearly 500 leather shoe makers including 50 big-scale enterprises.
Currently, 50 leather shoe firms are employing more than 10,000 laborers and contribute three fourth of the whole sector’s sales. (VEN)
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