Anti-dumping Duty Slashes Shoe Exports to EU

Vietnam’s shoe shipments to the European Union (EU) market now account for just 50 per cent of the country’s total footwear exports, compared with 70 per cent previously, according to the latest statistics by the Vietnam Leather and Footwear Association (Lefaso). 

 

In spite of this, the EU remains the biggest export market for Vietnamese shoemakers. Shipments to the bloc remain high as Vietnam-made shoes enjoy preferences under the framework of the Generalized System of Preferences (GSP) when exported to the EU.

 

Lefaso said under the impact of anti-dumping lawsuits raised against Vietnam-made leather capped shoes, Vietnamese footwear makers have faced big difficulties since the beginning of 2006, as they cannot get orders.

 

Before the anti-dumping tax rates on Vietnam-made shoes were announced, European partners delayed placing orders for fear high tax rates which would make Vietnam-made shoes unmarketable in the EU. However, the situation has improved a little since the EU announced the anti-dumping tax rate of 10 per cent on Vietnam-made shoes.

 

The 10 per cent tax rate on Vietnam’s products, according to analysts, proves not to be the “worst scenario”, especially as China-made shoes are imposed with 16.5 per cent. The lower tax rate on Vietnam-made shoes will make Vietnam’s products more competitive than China’s in the EU market.

 

According to Lefaso, European partners have come back to place orders with Vietnamese producers.

 

Nguyen Tan Thuan, Lefaso Deputy Chairman, however, said that if the anti-dumping lawsuit had not occurred, Vietnam’s footwear industry would have an export growth rate of 20-22 per cent instead of 17 per cent, and export turnover would have been $3.8 billion instead of $3.59 billion.

 

Meanwhile, exports to the US increased sharply last year, with turnover of $802 million, up 30 per cent over 2005. The export products were mainly made by 100 per cent foreign owned, joint ventures and several big producers, who did the work for big groups, namely Nike, Adidas and Reebok. The products are sold through main distribution channels.

 

Sports shoes proved to be the biggest export item from Vietnam, with 381 million pairs exported last year worth $2.63 billion, accounting for 73 per cent of the total footwear export turnover.

 

Vietnam now has 750 footwear production lines which allow it to make 715 million pairs a year.

 

Statistics show that at the end of 2006, of every 10 pairs of shoes purchased, two pairs were sourced from Vietnam. The country has become a major shoe producer in the world, ranking third in Asia, after China and India.