Investment drops in Wenzhou footwear sector
The province of Wenzhou in east China has a footwear industry that creates $10.7 billion of annual output value and accounts for one third of local GDP, according to the China Leather Industry Association (CLIA).
However many footwear manufacturers in Wenzhou have decided to relocate elsewhere or quit as production and land costs increase, according to a report released recently by the Wenzhou municipal government.
The government report also shows the investment in the region’s footwear sector dropped 45.8% in the first three quarters in 2009.
Wenzhou once had 6,000 shoemakers but now there are 2,000. In addition shoe manufacturers such as Aokang, Kangnai, Belle and Dongyi have moved their production overseas. They believe that moving production to western areas from the coast is a trend of the country’s industrial development.
