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Leather exporters find it difficult to meet targets
03
Jun '10
Leather and footwear industry executives, while addressing a seminar, held recently at HCM City said that, it won't be easy to attain this year's export target of US $5.3 billion, as also the forthcoming targets.

The exports, during the previous year, witnessed a fall of 16 percent and stood at $4 billion. This year, the Government anticipates that, exports will grow by 30 percent, but the same is being questioned by the industry.

Deputy Director of Phu Lam Shoe Company, Do Chi Tien remarked that, while considering the economic recuperation process, it would be quite ahead of time to get certain about attaining such a lofty growth target.

Nguyen Huu Thuan, Chairman, Viet Nam Leather Shoe Association, told that, the country was trailing behind in terms of competitive price advantage over competing countries like India, Thailand and mainland China. This is because, the wages were on a rise and it was required to import 70 percent of the inputs.

Ngo Dai Quang, Head of the Leather Shoe Research Institute, opined that, without appropriate strategies in place, the target is meaningless.

Deputy Minister of Industry and Trade, Nguyen Nam Hai stated that, the leather shoe industry, over the next 15 years, would mainly continue to contract out and in order to enhance exports, the companies should concentrate on developing trademarks and distribution systems, to get directly in touch with the customers, thereby, enhancing design and advertising.

The leather shoe industry, while representing 10 percent of the overall exports of country, employs over 1 million people.

Fibre2Fashion News Desk - India


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