Vietnam’s leather footwear industry is particularly dependent on imported raw materials and auxiliary materials, and the export market is also restricted. Therefore, when affected by the COVID-19 epidemic, companies in this industry need to find new supply markets to escape the predicament.
Since 2015, the annual export value of Vietnam’s leather footwear industry has grown by approximately US$1.2-1.7 billion, reaching US$17.94 billion in 2019, and has become Vietnam’s top five exporters. One of the product projects. According to the 2020 plan, the export target amount of this industry will reach more than 20 billion US dollars. However, like other industries, Vietnam’s leather footwear industry is facing many difficulties due to the impact of the epidemic.
According to the Vietnam Ministry of Industry and Commerce’s report on industrial production and trade activities in July 2020 and the first seven months of this year, Vietnam’s leather and products in July 2020 Production increased by 7.6% from the previous month, but decreased by 4.4% from the same period last year. The cumulative decrease in the first seven months of this year was 4.2% compared with the same period last year.
As for the export of footwear products, the cumulative export value in the first seven months of this year was approximately US$9.53 billion, a decrease of approximately 8% compared with the same period last year. The cumulative import amount of raw and auxiliary materials in this industry also decreased by 14.1% in the first six months of this year. Therefore, according to the assessment of the National Economic and Social Information and Forecasting Center of the Ministry of Planning and Investment of Vietnam, the labor use of the leather footwear industry and its related products decreased by 28.39%, and the turnover decreased by 29.23%.
Vietnam Leather Footwear and Handbags Association Secretary-General Pan Thi Chun Chung said that 70% of the raw and auxiliary materials for Vietnam’s industry are imported from China, and the new crown epidemic has caused manufacturers to face production difficulties. Due to the difficulties, Vietnamese companies are looking for supplies and raw materials from markets such as India, the European Union, Singapore, and Japan to maintain production.
Looking for suppliers of raw materials and auxiliary materials, Vietnamese companies are also actively looking for new customers, and there is already positive information in the European and Japanese markets. In addition, EVFTA will help Vietnamese manufacturers expand their export markets when it comes into effect this month. Secretary-General Pan believes that Vietnam’s leather footwear industry should overcome the weaknesses in industrial connectivity and have individual plans for the leather footwear and textile industries to develop Vietnam’s fashion industry into the future. </p
