Vietnam Footwear Association Recommends That The Government Reduce The Import Tariff Of Finished Leather Products.

A letter from Hu City footwear and leather association is requested that the Ministry of Commerce and industry of Vietnam approve the reduction of the import tariff rate of finished leather products, from the current 10% to 5%, so as to ease the rising pressure of current market prices and enhance the competitiveness of Vietnam's footwear and leather products in the international market.

At present, Vietnam has to import 70% to 75% shoes and leather raw and auxiliary materials from abroad, especially leather products. If the government agrees to reduce its import tariff rate to 5%, it will help footwear leather manufacturers take the initiative to grasp the source of raw material supply and enhance their competitiveness.

In addition, the EU is likely to revoke the preferential tariff rate for imports of Vietnamese footwear products from 2009. When Vietnam exports to the EU, footwear will have to bear a tariff rate of 3.5% to 5%, plus a favorable competitive advantage that the EU will levy on its anti-dumping duties, which will make the products lose their prices. The Association recommends that the import tariff rate of the finished leather products be lowered to help Vietnamese shoe manufacturers solve the difficult problems facing the future export footwear industry.