Vietnam's footwear sector set development target in 2010 with 50 percent domestic market share, exceeding the current level of 30 percent.
According to the Leather and Shoes Research Institute, currently the footwear consumption of Vietnamese consumers is over 130 million pairs, averaging 1.5 pairs per person per year. Of which, imported goods account for 70 percent, so the target of 50 percent market share in the leather footwear industry will be not easy.
At present, the country has 500 companies operating in the leather and footwear sectors, but 70 percent of them are producing by pure processing method for well-known footwear fashion firms in the world such as Nike, Adidas and Converse.
Hence, building a branded business is very significant in occupying the domestic market. However, it is not easy because Vietnamese enterprises have to depend on technique, technology and design of foreign partners.
In 2010, the country's footwear sector targets to reach an export turnover of $5.3 billion, increasing about 30 percent year-on-year.
In 2009, Vietnam's footwear export turnover earned $4.015 billion, down 15.8 percent against 2008's figure.
At present, the European market is Vietnam's biggest buyer with nearly 50 percent of the country's total export turnover followed by the US market with 25 percent and Japan with 3 percent.
According to the Leather and Shoes Research Institute, Vietnam is losing competitive advantages in price against other competitors such as China, India, Indonesia and Thailand because we have to import 70 percent of raw materials and labour costs.
As planned, in 2010, Vietnam's leather and footwear sectors need 682,000 workers.
|
