Since early this year, the province has continued reaching stable growth. In 2017, free trade agreements that Vietnam join will take effect, opening up both opportunities and challenges for domestic enterprises.
The province’s export turnover since early this year has obtained nearly US$18.4billion, up 16.5% compared to last year’s same period. Of these, the domestic investment sector achieved more than US$3.5billion, up 10.5% over last year’s same period while the foreign investment sector reached approximately US$14.9billion, up 18% against last year’s same period.
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This is a footwear production line of Dong Hung Industry Joint Stock Company
Among the province’s key export industries, footwear gained high growth. In October, the industry’s export turnover was estimated at US$192.6billion, up 13.9% compared to the previous month or 9.5% of the province’s total export value.
Nguyen Ngoc Son, Vice-Chairman of Binh Duong Leather and Shoe Association, General Director of Ngoc Son Python-Crocodile Trading and Investment Joint Stock Company said that Vietnam’s footwear industry has enjoyed opportunities for development from international integration. Also upon this, the company’s export turnover since early this year has achieved a year-on-year increase of 10%.
Whilst, according to Truong Thuy Lien, Director of Lien Phat Co.Ltd. in Di An town, the company’s production-business activities since early this year have remained stable with full coverage in terms of orders for the whole year. The company’s target this year is to produce 2 million pairs of shoes and till now, it has reached 1.3 million pairs of shoes. The company has also signed orders making 800,000 pairs of shoes for the last months of the year. Thus, its production has surpassed the yearly plan. Mrs.Lien added that the company has signed export orders with its partners till February 2017.
Along with advantages, footwear industry in Vietnam in general and in Binh Duong in particular has still faced a lot of difficulties. Particularly, the industry’s products find it to export into traditional markets like U.S and EU because they face non-tariff barriers and tougher standards on environment. Mr.Son said that although having numerous advantages, Vietnam’s footwear industry is still unsound in terms of export productivity. For better development, Binh Duong’s footwear industry needs to further realize trade promotion activities through commercial counselors, trade fairs…to set up plans on development orientations…
To Pham Van Xo, Chairman of Binh Duong Importers and Exporters’ Association, free trade agreements will bring both opportunities and challenges to footwear enterprises. Hence, the association needs to opportunely upgrade new policies and inform enterprises of them. Enterprises also need to make investment in the state-of-the-art equipment and technologies to be able to generate hi-quality products with diversification in terms of pattern and manage to build up their international trademarks towards sustainable development.
Reported by Phuong Le-Translated by K.T
