According to Ministry of Industry and Trade, export turnover of footwear products in the first 4 months was estimated at $5.33 billion, up 13.4% over the same period last year. In Binh Duong, by this time, many leather and footwear enterprises have had orders of until the end of 2019.
A shoe production line at Dong Hung Company.
The market is wide open
According to Vietnam Leather and Footwear Association, total export turnover of leather footwear in 2019 could reach $21.5 billion. Nguyen Quang Vu, Chairman of Binh Duong Leather and Footwear Association, said this goal was feasible. The first reason is that China continues to reduce investment incentives in the textile and footwear industry to focus on high-tech industry.
Notably, the world average footwear export price is $9.81/pair, while the price of Vietnam is $15/pair. Thus, the quality of Vietnam's footwear products has been improved and recognized by customers.
According to Binh Duong Leather and Footwear Association, in addition to the growth in business size and structure, leather and footwear enterprises in the province have developed remarkably in production technology. In particular, most leather and footwear enterprises in the province invested in modern production machinery and equipment, thereby improving output, product quality and meeting large orders. A representative of Thai Binh Shoe Company said that the good thing was that local material source of provincial leather and footwear industry developed stably, meeting the demand for raw materials of businesses.
To put more efforts
Ha Duy Hung, Director of Dong Hung Company, said the opportunity for expanding the market of leather and footwear industry was huge, when China no longer prioritized investments in this industry, while the US - China trade war was going on fiercely. This is the time for the domestic footwear industry to increase export value.
According to the Binh Duong Leather and Footwear Association, leather and footwear industry has been active in more than 70% of auxiliary materials for average product lines and 50% of raw materials for above-average product lines.
Experts in this industry said that Binh Duong needed more industrial parks to focus on tanning, weaving, leatherette; encourage localities to build industrial clusters specialized in manufacturing raw materials and accessories for leather footwear. Besides, it is necessary to have synchronization in enforcement of mechanisms, policies, and solutions to attract investments from multinational corporations; connecting domestic enterprises with the supply chain of raw materials for foreign invested enterprises.
According to the Ministry of Industry and Trade, textile and garment export turnover in the first 4 months of 2019 was estimated at $9.43 billion, up by 9.8%; footwear of all types at $5.33 billion, up 13.4% over the same period last year.
Reported by Phung Hieu – Translated by Ngoc Huynh
