Vietnam Intends To Raise The Localization Rate Of Shoemaking Industry In 2020.

Vietnam leather shoes and bags Association said that in 2015, Vietnam exported 15 billion dollars for leather shoes.

The third largest export commodities.

The main export markets for the United States and Europe account for 34% and 33% respectively.

From 1 to February this year, the export of leather shoes was US $1 billion 880 million, an increase of 7.3% over the same period last year.

Estimated annual exports

An increase of 16%.

According to the tax reduction process in the p Pacific Partnership Agreement (TPP), Vietnam's tariffs on leather shoes exported to TPP partner countries will drop to zero from 17 to 45% by 2018.

To this end, the Ministry of industry and trade of Vietnam encourages enterprises to invest in supporting industries of shoemaking industry, especially to encourage the production of supporting products such as cooked leather, shoe upper and sole.

Reported that, at present, Vietnam

The localization rate is 50 - 55%, and it is expected to increase to 75 - 80% by 2020.

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Footwear processing is a traditional labor-intensive industry. The cost of manpower is relatively large in the cost of shoe enterprises. If we can control the cost of manpower, this will greatly enhance the competitiveness of enterprises in the market.

China can become the "world factory" today, and the advantage of low labor cost plays an important role.

Then, with the deepening of reform and opening up and the fading of demographic dividend, wages of Chinese shoemaking industry increased by nearly 3.5 times compared with that of ten years ago.

Some people have compared the monthly salary of workers in the eastern coastal areas of China to about 500-600 dollars, while Vietnam only has about 250 dollars.

The cheap labor advantage is helping to open up the "world factory" to Vietnam, which has a population of ninety million.

The second is the preferential tax rate for GSP in the international environment.

In recent years, with the rapid development of China's footwear industry and the continuous growth of footwear export trade, China's footwear industry has encountered large-scale anti-dumping in the European and American markets, and the international trade barriers have been further expanded. Footwear in the international market will often encounter trade barriers such as anti-dumping and trade quota restrictions. Vietnam has enjoyed a number of preferential policies in exporting to the United States, the European Union and ASEAN. It is one of the countries that are less affected by international trade restrictions and anti-dumping, especially exported to the United States and the European Union. Vietnam has been enjoying the preferential tariff rate of footwear GSP for a long time, which has become an important reason for Vietnam to attract a large number of investors.

MattPriest, chairman of the US footwear distributors and Retailers Association, has said that the value of Vietnam's exports to the United States has increased at an annual rate of 20%-21% since 2001.

With the signing of the p Pacific Partnership Agreement (TPP) in 2015, Vietnam's footwear exports to the United States increased even more rapidly.

Third, geographical advantages.

Vietnam is one of the best natural conditions to develop the economy in the world. Compared with other Southeast Asian countries, Vietnam is a long strip country with rich mineral resources and a coastline of 3260 kilometers, which provides natural geographical advantages for its development in foreign trade and economy. Secondly, Vietnam has nearly 1/3 of the land in the plain, and it has two deltas, the Red River Delta and the Mekong Delta.

Fourth, the government set the stage to guide the policy.

In order to speed up the pace of reform and opening up, the Ministry of industry and trade of Vietnam issued the guidance plan for industrial development in 2020 and the 2030 outlook in July 2014 to promote Vietnamese domestic demand and enhance the competitiveness of Vietnamese industries in the global market.

This plan, approved by the Vietnamese Prime Minister, will include textiles, clothing and footwear into one of the next pillar industries in Vietnam.

By the end of 2014, Vietnam's Ministry of industry and trade had formulated the "overall development plan for Vietnam's footwear industry in 2020" by the year 2025, especially on the development of footwear industry. From the policy support, investment promotion, domestic sales, government public relations and other aspects, it was proposed that the footwear industry should become the pillar export industry of the national economy by 2020.