Vietnam Shoe Production Expanded Production First Quarter Export Orders Growth Momentum

Less than P, Vietnam's shoe exports grew rapidly in the first half of April this year, which represents an optimistic picture of the shoe industry.

The footwear industry has set the target for footwear exports in 2014 to $12 billion, an increase of 20%.

< /p >

< p > Vietnam Office of national statistics reported that in the first 4 months of 2014, footwear exports jumped 21.9%, reaching 2 billion 900 million US dollars.

The growth of consumption and living standards in various countries has become the main reason for the average growth of footwear exports over 20% months in the first 4 months.

Exports to EU countries increased significantly.

< /p >

Less than P, Vietnam's footwear exports have already begun to enjoy the preferential policy of European GSP coming into force on January 2014.

According to the policy, Vietnam's tariffs on shoe manufacturing have fallen from less than 4% in the past 7.7% to an increase in the competitiveness of Vietnamese footwear in the EU market.

A Vietnamese shoe business representative said that with the recovery of European economies and increased sales, exporters will gain more benefits from these markets.

In addition, the TPP agreement will also create more opportunities for Vietnamese shoe exporters in the near future.

Vietnam's footwear exports will benefit from the TPP agreement, which will win more competitive advantages in big markets like the United States and Japan.

< /p >

At present, local shoe exporters benefit from the fact that global importers are pferring procurement locations to P.

Many importers have been buying Vietnam since the beginning of the year because of rising labor costs in China.

< /p >

< p > in order to meet the growing demand of shoe products at home and abroad, Vietnamese enterprises are expanding production scale and improving product quality.

Many local export outlets reported that their orders had been backlog to the next 6 months.

Despite this, the Vietnamese footwear industry's contradictions are still prominent.

More than 70% of footwear exports are from overseas direct investment, which means that large share profits are still acquired by such companies, while 100% of Vietnam's domestic companies still have low added value.

< /p >

< p > in recent years, some large Vietnamese enterprises have increased investment in technology and production modernization, and developed their own brands, mainly for export.

The localization rate of Vietnam's shoe making industry has also increased. Some market analysts predict that the proportion is expected to exceed 50%.

< /p >

< p > but they also warned that many SMEs still rely heavily on imported raw materials, and more work needs to be done to expand the scope of the production chain.

< /p >