From the beginning of the year until now, leather and ceramic shoe enterprises in the province continue to develop stably. To seize new opportunities, experts recommend that businesses need to be well prepared in investment, from administration to production to meet the new situation.
Abundant orders
According to Mr. Nguyen Quang Vu, Chairman of Binh Duong Leather - Footwear - Handbag Association, the leather and footwear business is under fierce competition from Southeast Asian countries. However, it is forecasted that in 2019, consumer demand in the main markets of the domestic footwear industry will remain stable, so the industry will continue to grow. In the first 6 months of 2019, the province's footwear industry exported US $ 1 billion 484 million, up 13.9% over the same period last year. Export turnover of this industry in Binh Duong has grown quite well in most of the main export markets such as Europe, America, Japan and South Korea.
To date, most leather shoe enterprises in the province have had export orders until the end of the third quarter of 2019, with export orders increasing by an average of 10-12% over the same period last year. The good news, from the beginning of the year, raw material prices for this item in the country and import stability. Mr. Vu affirmed that the localization rate of the footwear industry increased rapidly, currently reaching the threshold of 60%. At this rate, the rules of origin are not a big obstacle for domestic footwear enterprises.
Customers choose to buy ceramics at Binh Duong Handicraft Fair 2019. Photo: Tieu My
Currently, Binh Duong is one of the provinces with developed ceramics industry, with an export value of about US $ 150 million per year and domestic consumption of US $ 70 million per year. In the first 6 months of 2019, the industry's export turnover reached US $ 94.9 million, up 7.2% over the same period last year. Ceramics businesses in the province have export orders to the end of 2019, the number of orders also increased by 10-15%; domestic and imported raw material prices increased by 10% over the same period last year.
Mr. Ly Ngoc Bach, Chairman of Binh Duong Ceramics Association, said that in recent years, Binh Duong ceramics have always had a stable growth of 10% / year or more. In the context of the national ceramic industry is subject to fierce competition from countries such as Thailand, China ... this growth shows a great effort of the industry.
According to Mr. Bach, the ceramics of Binh Duong are diverse in designs, types, colors, and artistic; from household products such as jars, khap, cups, forks, vases, tea pots ... to fine art ceramics are highly appreciated by customers.
Currently, technological improvement to improve product quality is being paid much attention by ceramic enterprises in the province. As Cuong Phat Company, has applied 5S productivity and quality tools (screening - arranging - clean - caring - ready), kaizen (continuous improvement) ... helping the company save costs. over VND 2.5 billion. The company's leaders said that the company now focuses on improving the system management and production management capabilities to create cost suitable to the market.
Proactive innovation to develop
According to industry and trade assessment, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EU) - Vietnam (EVFTA) bring great opportunities. For the domestic footwear industry, in particular helping businesses reduce input costs, access new technologies more easily, increase productivity and maintain market share in the US, EU and Japan.
On the other hand, the trade war between the US and China affects our country's import and export and promotes many businesses operating in the field of foreign leather shoes to invest in Vietnam. At the same time, the construction of raw material production areas in Vietnam helps domestic enterprises gradually participate more deeply in the global supply chain.
However, the new generation FTAs mentioned above also pose many difficulties and challenges for domestic enterprises. Specifically, the rules of origin of goods in the CPTPP have some new points such as: Rules of origin of goods; rules of origin of refurbished goods, recycled goods; formula to calculate regional value content (RVC); The list of origin criteria for specific products (PSR) is specified by specific production stages ... while the level of technology application in the management and production of the domestic leather and footwear industry is currently shown. still low. Many domestic enterprises have not been much involved in the global supply chain (because most of them only do outsourcing).
In addition, domestic leather shoe enterprises face many external challenges, such as increasing trade protection from countries. At the same time, domestic enterprises face difficulties in managing production and practicing quality standards, meeting technical and commercial barriers and standards of social responsibility ...
Assessing the ceramic industry in the province, Mr. Nguyen Van Danh, Director of the Department of Industry and Trade, said that in recent years, many ceramic enterprises in the province have boldly invested in technology and changed backward production methods to Modern production model. There are strong ceramic companies in the province, strong enough to compete in the international market, such as Minh Long, Cuong Phat, Phuoc Du Long ... Although it has passed the golden age, the ceramic industry is still is among the top 20 key export products of the province.
Reported by Tieu My – Translated by Vi Bao
