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Vietnamese leather and footwear exports on a rise
Aug '10
Leather and footwear exports in Vietnam during the initial seven months of this year have grown by 13.8 percent to US $2.75 billion. With this, the country holds its position of being the fourth largest producer and exporter of footwear, the world over.

Each year, Vietnam churns out around 800 million pairs of varieties of shoes, 120 million bags and 150 million square feet of tanned leather. All this is by and large exported to US, EU and Japan.

Exports to US during the initial seven months rose sharply, and were recorded at $700 million, constituting one fourth of the country's total exports. As exports to US rose, it was quite encouraging, as Europe, a leading exporter for Vietnam, had pulled back the preferential tariffs that it initially offered to Vietnamese shoe products, pursuant to its GSP (Generalised System of Preferences).

Moreover, EU is gearing up to cover the Vietnamese leather-capped shoes within its net of anti-dumping duties by 2011, but this does not mean that there are no hindrances in exporting to EU, this year. Experts say that, in order to enhance the exports during the remaining part of the year, exporters in the country should mainly concentrate on the high-value deals.

However, it is presumed that if the sector continues to hold on to the current growth rate of exports, it will manage to achieve the $4.6 billion target set for the year. Nonetheless, footwear producers in the country are confronted with a major problem of dearth of labour, which has also affected the exports.

To resolve the issue, bigger companies may deliberate on constructing dormitories for the workers to hold them back in their jobs.

Fibre2Fashion News Desk - India

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