Vietnam market flooded with China-made footwear

27 Jul '10

2 min read

With plans to export $6.2 billion worth of goods in the year 2010 alone, Vietnam ranks fourth on the list of the world's top 10 footwear exporting nations. But still, the local shoe market is flooded by foreign-made goods, especially from China.

Vietnamese salespersons too suggest their customers to purchase Chinese products, owing to their variety of design availability. More so, stores in HCM City too, mainly display Chinese goods. Surprisingly, the sales agents based in HCM City are appointed for a Vietnamese brand but sell Chinese goods.

Even other selected stores across Vietnam, have on display more of Chinese products for sales, targeting customers of different age groups vis-à-vis children, men and women with different price tags.

As per owner of a sole distributor of Vietnamese Asia brand footwear, products belonging to different brands are sold the most as retailers require to sell thousands of footwear models. But the Vietnamese firms are able to generate only limited edition products and models.

More over, these products help retailers earn atleast 2-3 times higher profit than Vietnamese goods. Also, locally manufactured goods by Vietnamese firms always require deposits, whereas Chinese products do not require any deposit. Traders just need to place their requirement orders with Chinese firms and they get the delivery of their products in merely five days.

As per Vietnam Association of Leather and Footwear Association (Lefaso), close to 90 percent of goods from bigger footwear firms are kept aside for exports. Global-invested firms total to around 70 percent of the overall export revenue, whereas Vietnamese goods make up to 30 percent.

Although, the country has 1,000 firms functioning in the footwear industry, around 70 percent are being sourced from foreign importers. Infact bigger local firms are not so keen in selling their goods in the local market.

Fibre2Fashion News Desk - India

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