Exports of the country's leather and footwear sector have long dependedupon foreign direct investment (FDI) businesses, as 77 percent of thetotal export value came from foreign enterprises.
Phan Thi ThanhXuan, General Secretary of the Vietnam Leather and Footwear Association(Lefaso) told news portal ndh.vn that domestic leather and footwearfirms have mainly manufactured for exports.
Competitive labour costs have attracted FDI inflows, as well as orders from Taiwan and the Republic of Korea.
Xuansaid it could not be denied that contributions from the FDI sectorpromoted export growth in the industry and provided jobs for labourers.
Local firms have received management experiences, modernising technologies and deeply joining in the value chain.
However,she said the significant presence of FDI companies in footwear exportsreflected the low level of competition exhibited by domestic businesses.
Thesector should put in place effective and long-term solutions to balancethe portion of exports between Vietnamese and FDI enterprises, as theFDI sector has an advantage in capital, experience and technology.
In addition, these businesses have markets they supply throughout the world.
Vietnamhas been negotiating several trade pacts, which were expected to bringbenefits to the sector. This was the reason that local footwear firmsshould take advantage of such trade pacts to promote their exports.
DiepThanh Kiet, the association's vice chairman, was quoted by thenewspaper as saying that another reason for the situation was thelimited support industry in the sector, noting that the industrysupplies only 30 percent of its needed raw materials, while spending1.1-1.5 billion USD each year for imports of leather for production.
Kietsaid local producers should be more active in supplying materials,while setting strategies and studies to meet consumers' tastes, thusincreasing the value of exported products.
Phan Chi Dung, headof the Ministry of Industry and Trade's Light Industry Department, saidcommercial agreements have strict regulations about the origin ofproducts.
Dung proposed that localities should provide favourableconditions for the footwear industry to build concentrated industrialparks and become involved in supplying materials.
Lefaso'sfigures revealed that the leather and footwear sector has always hadhigh growth rates, with export values at the top of the processinggroup.
In the first half of the year, the sector earned 6.09billion USD from exports, of which shoes reached 4.84 billion USD,increasing 22 percent, and the value of exported bags was 1.25 billionUSD, posting a 38 percent year-on-year increase.
It added that the target of export revenues of 12 billion USD this year would be possible.-VNA
Phan Thi ThanhXuan, General Secretary of the Vietnam Leather and Footwear Association(Lefaso) told news portal ndh.vn that domestic leather and footwearfirms have mainly manufactured for exports.
Competitive labour costs have attracted FDI inflows, as well as orders from Taiwan and the Republic of Korea.
Xuansaid it could not be denied that contributions from the FDI sectorpromoted export growth in the industry and provided jobs for labourers.
Local firms have received management experiences, modernising technologies and deeply joining in the value chain.
However,she said the significant presence of FDI companies in footwear exportsreflected the low level of competition exhibited by domestic businesses.
Thesector should put in place effective and long-term solutions to balancethe portion of exports between Vietnamese and FDI enterprises, as theFDI sector has an advantage in capital, experience and technology.
In addition, these businesses have markets they supply throughout the world.
Vietnamhas been negotiating several trade pacts, which were expected to bringbenefits to the sector. This was the reason that local footwear firmsshould take advantage of such trade pacts to promote their exports.
DiepThanh Kiet, the association's vice chairman, was quoted by thenewspaper as saying that another reason for the situation was thelimited support industry in the sector, noting that the industrysupplies only 30 percent of its needed raw materials, while spending1.1-1.5 billion USD each year for imports of leather for production.
Kietsaid local producers should be more active in supplying materials,while setting strategies and studies to meet consumers' tastes, thusincreasing the value of exported products.
Phan Chi Dung, headof the Ministry of Industry and Trade's Light Industry Department, saidcommercial agreements have strict regulations about the origin ofproducts.
Dung proposed that localities should provide favourableconditions for the footwear industry to build concentrated industrialparks and become involved in supplying materials.
Lefaso'sfigures revealed that the leather and footwear sector has always hadhigh growth rates, with export values at the top of the processinggroup.
In the first half of the year, the sector earned 6.09billion USD from exports, of which shoes reached 4.84 billion USD,increasing 22 percent, and the value of exported bags was 1.25 billionUSD, posting a 38 percent year-on-year increase.
It added that the target of export revenues of 12 billion USD this year would be possible.-VNA
