The Vietnam leather and footwear industry will continue to face difficulties this year because of the COVID-19 pandemic, according to the Ministry of Industry and Trade. (Photo: VNA)Hanoi (VNA) - Footwearexports this year are unlikely to hit the target of 24 billion USD because of the fallout of the COVID-19 pandemic, according to the Ministry ofIndustry and Trade.
Accordingto data from the General Department of Customs, exports in the first eightmonths were worth 10.8 billion USD, a 9.46 percent fall year-on-year, as the two largest markets,the US and the EU, cut their orders.
Othertop importers such as China and Japan also reduced orders.
Thetop buyer of Vietnamese footwear, the US bought 3.43 billion USD worth of products, or 8.58 percent lessyear-on-year, in the first seven months, the latest period for which thecustoms has figures for individual countries.
TheEU’s imports were down 32.5 percent to 2.21 billion USD as the two biggest individual markets,Belgium and Germany, cut orders by 17.3 percent and 10.4 percent.
Importsby China were down more than 19 percent to 1.14 billion USD, while Japan’s imports decreased by2.1 percent to 551.74 million USD.
Tran Quang Vinh, Chairman of the Phuc Yen Shoes Joint Stock Company, said import offeedstock had resumed, but, without buyers, production has dropped by 40-50 percent.
Mostof the production is targeted at export markets, and so it is difficult to sellin the domestic market due to high prices, he said.
Diep Thanh Kiet, Vice Chairman of the Vietnam Leather, Footwear and HandbagAssociation (Lefaso), said the footwear and handbag industry has the capacityto produce over 1.1 billion pairs of shoes and nearly 400 million backpacks andhandbags.
“Thedomestic market cannot absorb this number.”
Theministry forecast that the industry would continue to face difficulties untilthe end of the year, and relief depends on the US and EU’s ability to controlthe pandemic.
It shouldimprove its supply chain performance to take advantage ofthe milestone Vietnam - EUFree Trade Agreement, whichtook effect on August 1, Kiet said.
Thepandemic remains unpredictable, but if enterprises work hard to find partnersand improve their competitiveness, they still have excellent prospects, expertssaid.
Businessesand experts said trade promotion activities and support from authorities shouldboth be enhanced.
Lastyear exports were worth nearly 19 billion USD, with sports shoes accounting for a largeshare./.
VNA
