Vietnam Plans for Zoning of Materials for Leather, Footwear Sector
The Vietnam Leather and Footwear Association (Lefaso) said it is cooperating with the Ministry of Industry and Trade to survey suitable areas for the zoning of leather and footwear material production.
Diep Thanh Kiet, vice chairman of Lefaso, said the zoning scheme would be completed and submitted to the ministry of industry and trade for approval late this year.
The leather and footwear sector’s export turnover was estimated to have reached over US$2 billion in the first half, down 8.8 per cent on year.
The industry has set a target to ship US$5 billion worth of products in 2009, up 10 per cent on-year.
However, Kiet said that Vietnam imports up to 60 per cent of materials needed to produce footwear, mainly from China, Taiwan, Thailand and South Korea.
In addition, the distribution network and connection between producers and suppliers are still limited, contributing to lower sector profits.
The country has now 450 leather and footwear firms with over 600,000 laborers, Kiet said.
Vu Van Cham, chairman of the Ho Chi Minh City Leather and Footwear Association, said domestic producers are facing robust competition from foreign-imported shoes, especially from China.
Currently, Vietnamese-made shoes account for 30 per cent of the domestic market share, compared to the previous rate of 70 per cent. (Saigon Economic Times)
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