Shoe Exports of Domestic Firms to US Sharply Rise

Footwear exports of domestically-invested enterprises reached more than US$46 million in the first five months of this year, soaring 241 per cent against the same period last year, according to the Ministry of Trade.

Beside sports shoes, domestic firms have started receiving US firms’ orders for leather-capped shoes which have been imposed anti-dumping tariffs by the EU.

The ministry said these businesses are shifting to the US in order not to depend on the EU market.

 

According to a recent survey conducted by the ActionAid International Vietnam (AAV) and the Vietnam Leather and Footwear Association (Lefaso), as many as 500,000 workers employed directly in Vietnam’s leather footwear industry are likely to become redundant due to the EU’s punitive duties.

 

The survey also showed that the EC’s tariffs have caused a sharp reduction in the number of orders, output and income of many Vietnamese footwear enterprises. 76 per cent of surveyed companies reported an income fall of between 15-60 per cent as compared with 2004. They have to narrow their production due to the fall in orders.

 

The average income of workers at the enterprises has also reduced by 25-30 per cent as compared with 2004, especially, at two surveyed firms the reduction was reported at up to 50 per cent. Noticeably, the salary of leather footwear workers sharply falls while their actual income is listed in the lowest group among all industries, at the same time market prices have continuously been rising.

 

However, despite being greatly affected by the EC’s lawsuit, the country’s total footwear export sales in the five-month period still increased a hefty 21.1 per cent on-year to $1.36 billion. It has also set a target to obtain total export revenues of $3.3-3.6 billion from the products in 2006.