Leather & Footwear Export to Fetch US$5.1 Bln in 2009

Vietnam’s leather and footwear industry has targeted to earn US$5.1 billion from exports in 2009, up 8.7 per cent on-year, according to the Vietnam Leather and Footwear Association (Lefaso).  

 

According to the Ministry of Industry and Trade, the European Union (EU) market will remain the key export market for Vietnamese leather and footwear products this year although Vietnam has no longer enjoyed the EU’s Generalized System of Preferences (GSP) since January 1, 2009.

 

The loss of GSP status and the anti-dumping duty of 10 per cent will compound the current difficulties of Vietnamese shoemakers arising from the global economic crisis and falling demand, said Lefaso vice Chairwoman Nguyen Thi Tong.  

 

As a result, Tong said, many businesses, especially small-and medium-sized enterprises, have already cut production and laid off workers.

 

The EU is the biggest importer of Vietnam footwear, accounting for around 55 per cent of the export turnover. The anti-dumping tariff has already driven that figure down from a high of 66 per cent in 2004. (Investment)