Local footwear exports surge
Local footwear exports surge
Viet Nam 's footwear industry sees many favourable conditions to boost its exports as most local businesses have received steady orders for the second and third quarters of 2013.
According to the Viet Nam Leather and Footwear Association (Lefaso), many Vietnamese producers are now turning to new markets, including the US and Japan, in addition to their traditional consumers in the EU.
Statistics from the Viet Nam General Department of Customs show that the footwear export turnover hit US$1.73 billion by the end of March, or a year-on-year increase of 16.1 per cent, making it one of the country's key 10 export items with total earnings in the first quarter of 2013 surpassing $1 billion.
The upcoming signing of the Viet Nam-EU Free Trade Agreement (FTA) and the Trans-Pacific Partnership (TPP) Agreement is expected to bring more advantages to the industry.
The TPP alone will help Viet Nam penetrate into a larger market of 2.7 billion consumers that makes up half the global GDP.
In addition, tariffs levied on imports to the US, one of Viet Nam's key markets, will be slashed to zero per cent from the current 14.3 per cent on average.
Footwear and leather exports to TPP member states are expected to account for more than 47 per cent of the sector's total value, with the US having the share of 31 per cent.
The Japanese market is also forecast to contribute significantly to the sector's 20 per cent growth in orders this year, especially since the Tokyo Business Association sent 10 footwear businesses to Viet Nam to conduct market research at the end of last year.
Over half of these businesses have subsequently decided to shift their orders from other markets to Viet Nam.
The industry targets $9.7 billion in revenues this year, an increase of 10 per cent over 2012.
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