The European Union will cut tariff on Vietnamese footwear from the existing 13-14 percent rate to about 3-4 percent this year, Vietnam Plus reported quoting Vietnam’s Official Government Portal.
The reduction in tariff would be in accordance with the EU’s Generalised System of Preferences (GSP), which gives unilateral tariff preferences to the developing countries for the 2014-16 period, the report said.
In view of the expected tariff cut, Vietnam’s Ministry of Trade and Industry has urged domestic footwear producers to devise long-term investment policies to boost domestic sources of materials as well as for developing ancillary industries.
The Ministry has also asked local footwear manufacturers to diversify their production to include high-quality handbags and wallets, which are also among the industry’s most profitable lines.
In 2013, Vietnam’s footwear exports increased by 18 percent year-on-year to US$ 10.3 billion, of which $3.4 billion worth of goods were destined to the EU, accounting for 33 percent share in Vietnam’s total footwear exports.
While the EU is the largest market for Vietnamese footwear, Vietnam is the second-largest footwear supplier to the EU, next only to China.
Meanwhile, Vietnam Footwear Association has said that in addition to the GSP, it is also expecting some tariff concessions and export incentives from the EU-Vietnam Free Trade Agreement and the Trans-Pacific Partnership (TPP) agreement, for which negotiations are currently going on.
To connect manufacturers and suppliers with buying houses and fashion brands, Fibre2fashion.com is coming up with an online fair on Leather “Skin Show 2014” scheduled in Mid March-2014.