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Vietnamese footwear firms facing problems
08
Nov '11
The Vietnamese footwear industry is being confronted with several problems like fall in export orders and dearth of manpower, Truong Thi Thuy Lien, Director of footwear manufacturing firm Lien Phat Co Ltd. said while speaking on the sidelines of a seminar aimed at searching ways for the industry to rise above these challenges and make the most of the opportunities at hand.

The seminar was organized in the HCM City by the Vietnam Leather and Footwear Association and Dun&Bradstreet, an international level business information provider.

Lien stated that the mindset of the people in the EU and the US was greatly influenced by the public debt crisis in these countries, which has led to a fall in export orders.

She stated that the exports to the US and EU markets are likely to witness a 15 to 20 percent drop during the first quarter of 2012 as compared to exports clocked during the corresponding period of the current year.

Moreover, Lien said, the labour-intensive footwear industry is also facing a severe labour scarcity, owing to which several footwear producers in the country are finding it difficult to fulfil the export orders on hand, while some others are hesitant in inking new deals for apprehensions of not being able to execute the same due to dearth of workers.

She and other speakers at the seminar said the high cost of raw materials is also a problem faced by the Vietnamese footwear exporters.

She said that in order to rise above these adversities, her firm has streamlined the production, slashed all unnecessary expenses and reassessed its investment portfolio.

Presently, the footwear firms are only trying to sustain their operations and keep hold of their workforce, and are not thinking of making profits, she added.

With a year-on-year rise of 31 percent, Vietnam's footwear exports grew to US$ 4.7 billion during the first three quarters of the current year, with the EU and the US being the two leading importers.

Fibre2fashion News Desk - India

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