Vietnamese industry unlikely to hit annual target
12/11/2009
In the first 10 months of this year Vietnam has exported 269.1 million pairs of shoes, earning US$3.21 billion, a decrease of 2% in volume and 16% in value year-on-year, according to the country's mnistry of industry and trade.
The ministry said that based on the current figures, it would be hard for the footwear industry to meet its export target for the year of $4.77 billion.
Deputy Chairman of the Vietnam Leather and Footwear Association, Diep Thanh Kiet, said that the export price of footwear products was roughly 3-5% lower than that of the same period last year.
Footwear exports to the EU, which represents 60% of Viet Nam's total footwear export market, are also forecast to remain difficult if the European Commission approves the extension the anti-dumping tariffs on Chinese and Vietnamese on November 19.
Viet Nam is one of the largest footwear exporters in the world but the industry still lacks the ability to design its own models and has small-scale production and limited service infrastructure.
In addition, 70 per cent of the materials and sub-materials required by the industry have to be imported, leading to higher production costs.
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