Back
INVESTMENT OPPORTUNITIES IN VIETNAM PART IV. Leather and Footwear
INVESTMENT OPPORTUNITIES IN VIETNAM [1]
PART IV. Leather and Footwear
PART IV. Leather and Footwear
Thanks to its large population, Vietnam possesses abundant human resources and cheaper labor costs than some countries in the region. The textile and garment industry is also a key industry of Vietnam with many textile and yarn factories that can expand and supply raw materials for the footwear industry.
Vietnam also has a reputation on the world footwear industry map, which is a familiar place for many famous brands.
Like the textile and garment industry, Vietnam is also in short supply of skilled workers and low management capacity and productivity. Strike issues in the industry occur more often. Besides, domestic raw materials and accessories are not enough to meet the demand, and the localization rate is low. In terms of production, the supply chain is incomplete, so the most only process for export.
The ability to manufacture and supply raw materials is low, along with underdevelopment distribution, marketing, and logistics systems are obstacles for the industry in both domestic and export markets.
The Vietnam leather and footwear industry has a scale of 1,271 enterprises, which FDI enterprises account for more than 40% of that number but decided about more than 75% of the export value.
The compound annual growth rate in the period 2015 - 2019 reached 19.2%, in 2019 the output of leather (excluding synthetic leather) reached 144.9 million m², up 23.5% over the same period in 2018. The output of leather produced in the country is still low, only meeting 40% of the demand for leather for export production, forcing businesses to import leather from abroad. 2 2 The decision "Vietnam Leather and Footwear Industry Development Plan for the period up to 2020, vision to 2025" was approved and issued by the Ministry of Industry and Trade of Vietnam under Decision No. 6209/QD-BCT on November 25, 2010
Strategic product planning
• Footwear is a key product of the industry in which sports shoes and footwear are the top priority in production and export;
• Producing fashionable leather footwear and high-quality purse bags for new markets, high-end markets, and domestic markets;
• Focus on produce leather with advanced technology, environmentally friendly to serve the strategy of producing fashionable leather footwear, pairs of high-quality purse bags for export and domestic market. Investment in leather production is associated with the development of herds contributing to imports reduction and hold proactive in production.
Investment planning
• Invest in expanding more than 3000 production lines of sewing shoes and wallet bag manufacturing projects. These investment projects are carried out in rural areas;
• New investment and expansion of over 400 footwear assembly and completing lines. These investment projects are carried out in provinces with advantages in seaports and raw materials;
• New investment and development of fashion research centers in major cities, analysis centers assessing the quality of raw materials, products, investment projects in waste treatment and environmental protection zones;
• Leather - Footwear raw material production projects, investment projects in Leather - Footwear raw material industrial complex are entitled to all incentives such as industry supporting, and preferential investment credit and export credit of the State.
[1] Vietnam Investment Promotion Guidebook
Vietnam also has a reputation on the world footwear industry map, which is a familiar place for many famous brands.
Like the textile and garment industry, Vietnam is also in short supply of skilled workers and low management capacity and productivity. Strike issues in the industry occur more often. Besides, domestic raw materials and accessories are not enough to meet the demand, and the localization rate is low. In terms of production, the supply chain is incomplete, so the most only process for export.
The ability to manufacture and supply raw materials is low, along with underdevelopment distribution, marketing, and logistics systems are obstacles for the industry in both domestic and export markets.
The Vietnam leather and footwear industry has a scale of 1,271 enterprises, which FDI enterprises account for more than 40% of that number but decided about more than 75% of the export value.
The compound annual growth rate in the period 2015 - 2019 reached 19.2%, in 2019 the output of leather (excluding synthetic leather) reached 144.9 million m², up 23.5% over the same period in 2018. The output of leather produced in the country is still low, only meeting 40% of the demand for leather for export production, forcing businesses to import leather from abroad. 2 2 The decision "Vietnam Leather and Footwear Industry Development Plan for the period up to 2020, vision to 2025" was approved and issued by the Ministry of Industry and Trade of Vietnam under Decision No. 6209/QD-BCT on November 25, 2010
Strategic product planning
• Footwear is a key product of the industry in which sports shoes and footwear are the top priority in production and export;
• Producing fashionable leather footwear and high-quality purse bags for new markets, high-end markets, and domestic markets;
• Focus on produce leather with advanced technology, environmentally friendly to serve the strategy of producing fashionable leather footwear, pairs of high-quality purse bags for export and domestic market. Investment in leather production is associated with the development of herds contributing to imports reduction and hold proactive in production.
Investment planning
• Invest in expanding more than 3000 production lines of sewing shoes and wallet bag manufacturing projects. These investment projects are carried out in rural areas;
• New investment and expansion of over 400 footwear assembly and completing lines. These investment projects are carried out in provinces with advantages in seaports and raw materials;
• New investment and development of fashion research centers in major cities, analysis centers assessing the quality of raw materials, products, investment projects in waste treatment and environmental protection zones;
• Leather - Footwear raw material production projects, investment projects in Leather - Footwear raw material industrial complex are entitled to all incentives such as industry supporting, and preferential investment credit and export credit of the State.
[1] Vietnam Investment Promotion Guidebook
Email
Facebook