Vietnamese Shoe Firm Reports High Export Revenues in 2006
The Thuong Dinh Footwear Company reached export revenues of US$5.4 million in 2006, compared with US$4.7 million in 2005, Hoang Van Chung, the company's deputy general director said.
The company made 5.5 million pairs of shoes, 2.5 million of which were exported while those remaining were sold domestically, Chung said.
He added while preserving traditional markets, Thuong Dinh Footwear expanded its reach into the US, South Africa, Mexico, and Peru with quota-free contracts. As a result, export value rose sharply in 2006.
Chung, though, warned of several challenges for the New Year. Raw material prices, like rubber and leather, have increased, which should put a squeeze on profit margins. In addition, Government-approved electricity price hikes will impact production costs.
Despite these negative factors, the company still expects to produce about six million pairs of shoes this year, with 2.5 million earmarked for export.
Vietnam earned $3.55 billion from footwear exports in 2006, an increase of 16.9 per cent on-year. In 2007, the industry aims to generate US$4 billion in export turnover, a 15 per cent on-year rise increase. (VNA Jan 9, GSO Dec 2006).
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