Vietnam's Leather Shoes Exports Surged And Raw Material Imports Reduced Profits.

　　 Vietnam? The export of leather shoes and handbags has increased rapidly and has become the third largest export industry in Vietnam. However, 70% of leather and other raw materials needed for leather shoes and handbags industry in Vietnam depend on imports. Meanwhile, the development of leather industry in Vietnam is suppressed due to scattered production and lack of skilled workers.

The Vietnamese government is committed to breaking away from the import dependence of leather raw materials and improving localization.

Hugo network learned from the Asian media "intellasia" June 25th report: Vietnam leather and Footwear Association said that Vietnam's leather shoes and handbags this year's export volume will reach 12 billion U.S. dollars, will achieve the expected export target.

Last year, the export of leather shoes and handbags reached US $10 billion 400 million, becoming Vietnam's third largest export industry. "Exports in the first quarter of this year are in good condition, leather shoes export." increase 14%, handbag exports also increased by 18%. Diep Thanh Kiet, vice president of leather and Footwear Association, said.

However, factors such as scattered production, underdeveloped supporting industries and lack of skilled workers have suppressed the sustainable development of leather industry in Vietnam. Last year, Vietnam imported leather and other raw materials up to 4 billion 200 million US dollars, equivalent to 40% of the total leather exports.

At present, 70% of leather made of leather shoes and handbags needs to be imported. The main source of imports is Korea, Taiwan, Italy and Thailand. When asked whether the current problems in Vietnam and China will affect the import of leather, Diep Thanh Kiet said the impact was not great, because only about 6%-7% of leather was imported from mainland China.

The textile industry is also somewhat similar. At present, only 40% of cloth and other raw materials can be purchased locally in Vietnam. Vietnam calls for $3 billion a year to import cloth and other raw materials from abroad. The main source of imports is China.

However, from the trend of cloth production to China from Vietnam, Viet Nam is consulting with other countries and organizations about the free trade agreement. The signing of the free trade agreement will make the factories that migrate to Vietnam enjoy more benefits.

In the next five years, Vietnam's raw materials will meet 50% of the demand, and the rest will be imported from Taiwan, Vietnam and Indonesia.

Some people in the industry say that because Vietnam's wage level is lower than that of China, Vietnam's demand for products at home and abroad is very high, and Vietnam will join the trans Pacific Cooperation Agreement, so Vietnam's leather and handbag industries will explode tremendous potential.

Phan Chi Dung, head of the Light Industry Department of the Ministry of industry and trade, said that according to the government's plan, the proportion of "made in Vietnam" in leather products industry will be increased to 60%-65% in 2015, and this proportion will increase to 75%-80% by 2020.

However, he Admit It is difficult to achieve this goal, but Vietnam and the European Union have identified the free trade agreement and will join the trans Pacific Trade Cooperation Organization at the same time. This will greatly enhance the proportion of "Vietnam made" in the leather industry.