Following the EC’s anti-dumping lawsuit on leather shoes from Vietnam and China, Vietnam Business Forum of the Vietnam Chamber of Commerce and Industry conducts an interview with Ms. Nguyen Thi Tong, General Secretary of Vietnam Leather and Footwear Association (LEFASO Vietnam).
What do you think about the anti- dumping lawsuit and comments on the EC’s report that states that the State of Vietnam has provided support to local leather and footwear manufacturers?
LEFASO Vietnam, representing Vietnam’s leather and footwear enterprises, once again affirms that Vietnamese manufacturers of shoes with leather uppers have not dumped in the EU and the State of Vietnam has also not given any support to these enterprises as stated in the EC’s report. Competitive edges of Vietnam’s leather and footwear manufacturers are low-cost labor force, abundant material sources imported from regional countries with reasonable price and favor location, transportation and ports…. In fact, these enterprises have been responsible for their production and business activities themselves so far and engaged in fair competition in both domestic and international markets.
The EC’s announcement on the temporary taxes will result in negative impacts on Vietnam’s social and economic development in general and its leather and footwear industry in particular, already regarded as one of Vietnam’s major foreign currency earners attracting more than 500,000 labourers.
What are the reactions of such manufacturers in this case?
Vietnam’s enterprises in the industry are very worried over the proposal of a progressive duty imposed over six months, which will certainly create a bad impact on their production and business activities. Since the fourth quarter of 2005, many orders from the EU have been reduced, especially the orders of shoes with leather uppers. In the first quarter of this year, most EU customers having close business relations with Vietnamese shoe manufacturers have temporarily postponed their orders and waited for the final decision from the EC to decide whether they will continue doing business with Vietnamese partners or not. If the new import taxes on Vietnam’s shoes are too high in the coming time (as EU proposed), they will transfer their shoe orders to other countries with more advantages such as Indonesia, India, Thailand and others. However, workers in the leather and footwear industry of these countries are considered less hardworking and skillful than those in Vietnam.
At present, many Vietnamese shoe manufacturers have found new markets such as the US and others.
Do you think the anti-dumping case will badly affect Vietnam’s target of US$3.7 billion in leather and footwear export value in 2006?
Changes and impacts caused by the problem will certainly damage the industry’s export target because the export ratio of Vietnam’s leather and footwear products to the EU is very large. The direct exports to the market account for 65-68 per cent and the total peaks at 75-76 per cent, including exports via the third countries.
What are LEFASO’s activities in helping local leather and footwear enterprises deal with the anti - dumping case?
From the beginning of the lawsuit, LEFASO Vietnam has urged the industry’s enterprises to actively cooperate with EC’s investigation delegation to find out the real issues related to the case, including evidences of Vietnam’s shoe makers operating in the market economy, production methods, and the affirmation of the local makers’ inability of dumping. Unfortunately, LEFASO’s proposals and comments have not been properly and fairly considered by the EC.
LEFASO will continue asking the EC and suggesting the Vietnamese Government find solutions to minimize losses of Vietnamese shoe makers as well as ensure the interests of parties in the EU, including importers, retailers and especially EU consumers.
LEFASO Vietnam will try it’s best in conducting necessary procedures and preparations for the EC’s working visits to Vietnam in early March.
Reported by The Nam
Vietnamese
