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    Vietnam'S Footwear Industry Is Expected To Achieve Export Targets In 2020

    2020/3/2 14:10:00 9

    Footwear IndustryExportTarget

    Vietnam's footwear industry association said that Vietnam took advantage of the US China trade war procurement transfer, making Vietnam's footwear industry confident of reaching a US $24 billion export target this year.

    Vietnam Leather and Footwear Association (Lefaso) vice chairman and Secretary General Phan Thi Thanh Xuan said Vietnam leather and footwear industry has an excellent advantage to reach the 2020 target, according to the data from the Vietnamese media. Industry groups expect the industry's industrial production index to increase by about 11%, and the localization rate of products will reach 60% growth.

    Lefaso predicts that in 2020, the export of footwear and bags will reach 10%, with an export volume of US $24 billion.

    Xuan said that in 2020, trade conflicts between the US China trade war and the US and other trading partners, such as Europe and India, may be reduced, and the global economy will gradually recover.

    In addition, orders for footwear and bags will continue to shift from China to Vietnam. Vietnam can use FTA preferential tariff measures to expand exports, and forecast that Vietnam's main footwear products export market will increase its local demand in 2020.

    Xuan said that Foreign direct investment (FDI) enterprises will continue to expand production and help the footwear industry to maintain export growth.

    Lefaso said that in order to continue to increase exports, the industry must aim at high value-added products and high-end brands, expand technology investment, increase productivity, develop export markets and enhance competitiveness.

    Lefaso said: "the industry must support the development of materials and industries, and increase productivity. It should also encourage investment in footwear production in central and southern Vietnam. "

    Lefaso said, however, the biggest difficulty facing the leather and footwear industry is the optimization of human resources.

    In terms of exports, the industry grew steadily in 2019 and maintained a competitive advantage in traditional markets. The top five markets are the United States, the European Union, China, Japan and South Korea, which account for more than 82% of Vietnam's total footwear exports.

    According to the data of Vietnam Plus, the total export of Vietnamese footwear and bags in 2019 reached US $22 billion, including foreign direct investment enterprises, accounting for us $15 billion 100 million, accounting for 75.8%.

    The export gap between foreign direct investment and Vietnam's domestic enterprises has narrowed. In 2017, Vietnam's domestic enterprises accounted for 19.7% of the total export value of footwear and bags, and the figure increased to 24.2% in 2019. This confirms the recovery of domestic footwear enterprises.

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