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Vietnam leather exporters lack market information

2022-09-08

Source:vnnews

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HANOI: Vietnam’s leather and footwear enterprises are facing many challenges in the remaining months of 2022, especially the lack of market information, according to the Vietnam Leather, Footwear and Handbag Association (Lefaso).

Phan Thi Thanh Xuan, Lefaso, vice-chairwoman and general secretary, said the existing inventory for fashion items was very large.

Surveys from the businesses and brands show that the order situation will slow down until the first quarter of 2023.

Vietnam’s export leather and footwear products are rated at an average level in terms of quality and price.

The industry needs to produce higher-value items to compete with the same products from other countries, said Xuan.

To do so, importing high-value raw materials from other countries is necessary.

The domestic leather and footwear industry has not taken advantage of importing equipment and materials from the countries which have signed trade agreements with Vietnam, she added.

Especially the European Union (EU), this market has a good source of high-value raw materials suitable for manufacturing products in a higher segment, said Xuan.

Vietnam has not used opportunities to import new technologies and equipment from this market in the context of developing sustainable production, using green and clean technology.

Xuan has proposed Vietnam’s trade offices abroad to provide market information for local businesses and assist them in finding partners supplying the raw materials and accessories in the EU.

That will help the companies take tax incentives from the Vietnam-EU Free Trade Agreement, she said.

She added that the German Supply Chain Act comes into effect from January 1, 2023. This law will strongly impact the local production chain of the leather and footwear industry when exporting to the EU market.

Meanwhile, domestic leather and footwear enterprises have only received information about the date of effecting the law, but not specific schedules on implementing the law and requirements on procedures. — Viet Nam News/ANN

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