Illustrative image (Source: VNA)Hanoi (VNA) - Export turnover of leatherand footwear is likely to rise again in the fourth quarter of this year, accordingto the Ministry of Industry and Trade (MoIT).
A ministry report shows that after a slump in thesecond quarter, orders at leather and footwear companies began to recover in thethird quarter, with many receiving sufficient to keep them busy for theremainder of the year.
October footwear production was estimated at 31million pairs, up 5.3 percent against September and 11.8 percent year-on-year.
In the first 10 months of the year, production wasestimated at 249.1 million pairs, an increase of 0.8 percent year-on-year,while exports totalled 13.38 billion USD, down 9.9 percent.
In particular, after three months of the EU-VietnamFree Trade Agreement (EVFTA) being in effect, footwear has seen growth inexports.
Figures from MoIT’s Import-Export Department revealedthat in August and September, the value of footwear products receivingcertificates of origin for export to the EU reached nearly 391 million USD.
Despite the recovery in orders, MoIT said that numbersremain modest due to low consumption triggered by COVID-19.
Though the EVFTA is expected to drive growth in the leatherand footwear sector, the reality is that not many companies are able to exploitthe deal’s advantages.
Some 85 percent of the 1,700 footwear companies inVietnam face limitations in capital, techniques and technology, and materials. Theyare also largely dependent upon foreign customers.
Phan Thi Thanh Xuan, Vice President and GeneralSecretary of the Vietnam Leather,Footwear and Handbag Association (Lefaso), said Vietnamese companies have yetto be active in finding customers and approaching markets and also face problemsin human resources and infrastructure.
Analysts have said that leather, footwear, and handbagcompanies should increase the local content in their products to meet criteria inthe EVFTA regarding origin. State-owned enterprises should work closelytogether to optimise the opportunities
Many companies have made preparations to restructure,upgraded their infrastructure, and secured material sources to meet EVFTArequirements, while striving to enhance product quality.
MoIT has predicted that exports will expand in thelast quarter of the year, from year-end holidays and festivals in Europe and theAmericas.
The sector’s target of 24 billion USD in exportrevenue is within reach, but repositioning in global supply chains in thefuture may help Vietnam’s leather and footwear sector increase its marketshare./.
A ministry report shows that after a slump in thesecond quarter, orders at leather and footwear companies began to recover in thethird quarter, with many receiving sufficient to keep them busy for theremainder of the year.
October footwear production was estimated at 31million pairs, up 5.3 percent against September and 11.8 percent year-on-year.
In the first 10 months of the year, production wasestimated at 249.1 million pairs, an increase of 0.8 percent year-on-year,while exports totalled 13.38 billion USD, down 9.9 percent.
In particular, after three months of the EU-VietnamFree Trade Agreement (EVFTA) being in effect, footwear has seen growth inexports.
Figures from MoIT’s Import-Export Department revealedthat in August and September, the value of footwear products receivingcertificates of origin for export to the EU reached nearly 391 million USD.
Despite the recovery in orders, MoIT said that numbersremain modest due to low consumption triggered by COVID-19.
Though the EVFTA is expected to drive growth in the leatherand footwear sector, the reality is that not many companies are able to exploitthe deal’s advantages.
Some 85 percent of the 1,700 footwear companies inVietnam face limitations in capital, techniques and technology, and materials. Theyare also largely dependent upon foreign customers.
Phan Thi Thanh Xuan, Vice President and GeneralSecretary of the Vietnam Leather,Footwear and Handbag Association (Lefaso), said Vietnamese companies have yetto be active in finding customers and approaching markets and also face problemsin human resources and infrastructure.
Analysts have said that leather, footwear, and handbagcompanies should increase the local content in their products to meet criteria inthe EVFTA regarding origin. State-owned enterprises should work closelytogether to optimise the opportunities
Many companies have made preparations to restructure,upgraded their infrastructure, and secured material sources to meet EVFTArequirements, while striving to enhance product quality.
MoIT has predicted that exports will expand in thelast quarter of the year, from year-end holidays and festivals in Europe and theAmericas.
The sector’s target of 24 billion USD in exportrevenue is within reach, but repositioning in global supply chains in thefuture may help Vietnam’s leather and footwear sector increase its marketshare./.
VNA
