Vietnam'S Shoe Industry Needs To Solve The Problem Of Localization Ratio.

The Ministry of industry and trade announced on Wednesday that Vietnam's shoes accounted for 10% of the global market share.

Since the beginning of 2014, the export of Vietnam's footwear industry has reached 10 billion 200 million US dollars, up 18% over the same period last year.

Vietnam's footwear products are now well received by EU, Asian, North American and Latin American markets.

Vietnam bags

By 2020, the number of shoes produced annually will be 17 billion pairs and 300 million bags, creating about 1000000 jobs.

Vietnam's Ministry of industry and Trade said that by 2020 Vietnam's export revenue could reach US $24 billion 500 million.

But Vietnam's shoe industry still faces many challenges. The most important thing is the localization ratio.

It is understood that the average localization ratio of Vietnamese footwear products is 40% to 50%.

These localized percentages are mainly concentrated on soles and sewing threads, and leather, equipment and machinery rely mainly on imports.

Vietnam leather, footwear and bags

On Thursday, Secretary General Phan Thi Thanh Xuan suggested that to develop the footwear industry, we need to cater for the integration needs, solve the problems of raw materials, increase the localization ratio and reduce other costs.

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The Italy Footwear Manufacturers Association (Assocal) said it supported Italy's proposal to reduce labor costs and make Italy more competitive.

However, the Association believes that the government's support for shoemaking industry should go further.

In November 15th, the Italy Footwear Manufacturers Association held its annual meeting in Florence.

At the meeting, the association was not satisfied with the government's funding to reduce exports of manufactured goods in Italy.

The chairman of the association, Cleto Sagripanti, said the government had withdrawn its export support fund of about 130 million euros a year.

"At this difficult time, especially for Russia's exports in important markets, the government's support for Italy's footwear exports is particularly important, because we need to develop new markets to make up for the loss of the market."

The chairman said, "the proposal to reduce labor costs marks the beginning of a new manufacturing environment, demonstrating the government's firm support for growth goals and employment.

But the government needs to take more measures to make the economy fully recover. We believe that the first step is to protect the industries we are good at.

He added that the association would appeal for "restarting" Italy manufacturing at the Florence conference.