Vietnamese leather shoemakers are eyeing the US, Japan and African markets following the loss of its biggest export market, the European Union (EU). Surveys conducted on these markets have shown promising results, said exporters.
According to the Ministry of Trade (MoT), the US emerged as Vietnam’s second largest shoe importer last year with an export value of US$423 million, 50 per cent higher than in 2003.
By the end of September 2005, Vietnam became the third largest shoe exporter to the US, with a turnover of US$394 million, after China and Italy.
However, a director of a shoe company said their switching to new markets is not an easy task.
"The markets that local shoemakers are looking to explore are well-established markets of the big rival – China," he said.
In the US for example, Chinese shoes account for 80 per cent of the country’s shoe imports while Vietnamese shoes make up a modest 1 per cent.
He added "It is difficult for us to compete with traditional and well-known shoemakers from Italy, France and Spain in the high-quality category or with China in cheaper items."
Vietnamese shoes are, however, more competitive in terms of price and design in the African market than exports of some other countries, trade ministry said. But the efforts of Vietnamese shoe exporters, who have discovered this market since 2004, are not effective as 80 per cent of businesses have modest financial capacity, making it difficult for them to adjust their production lines to produce goods to suit the tastes of new customers.
Meanwhile, most shoemakers reported a void for next year’s export orders.
"Usually late into the year, we ink deals with European partners for delivery next year," said an anonymous director of a shoe company in Ho Chi Minh City. "But this has not happened this year with many customers still waiting or canceling their contracts."
The ongoing lawsuit by European Footwear Industry Confederation (CEC) against Vietnam’s leather shoe uppers has stopped EU importers, who fear a dumping tax if CEC wins the case, from signing new orders.
Local economists warned the lawsuit could trigger a massive layoff in Vietnamese shoe companies and force them into bankruptcy.
Diep Thanh Kiet, chairman of the HCM City Leather and Footwear Association said, the lawsuit would have a negative impact on nearly one million laborers, ranging from raw material to accessory producers working for the sector.
To stay afloat, experts said shoemakers should concentrate on making high-quality shoes, create global trade brands, and take part in international fairs and research on tastes of each market’s demand.
Vietnamese footwear producers are also hoping on the domestic market to help them overcome financial difficulties caused by problems in overseas markets.
VNS
Vietnamese
