Vietnam’s footwear industry will stagnate without R&D, warns association
Officials from Lefaso, Vietnam’s leather and footwear association, have warned that without investment in research and development, the industry will stagnate in five years.
“The industry lacks the technical capacity to design and build brands and product lines,” said Lefaso vice-president Diep Thanh Kiet.
“Although we have low labour costs, the majority of workers have limited skills and low labour productivity. If cannot increase investment in design, researching new products, production capacity and distribution in the next five years, the industry will not be able to grow.”
The country currently imports most of the raw materials it uses for the footwear industry. It makes low-quality canvas domestically, as well as soles and threads. Most machinery is imported, as well as 70% of its leather needs.
Lefaso says new policies need to be implemented that attract overseas tanning groups and leather shoe companies to help boost investment and know-how.
The sector’s exports are increasing rapidly – the country is targeting $12 billion by the end of this year, 16% higher than last year.
