Vietnam'S Leather Shoes Exports Grow Rapidly To Become The Third Largest Export Industry.

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The export volume of handbags has increased rapidly and has become the third largest export industry in Vietnam.

However, 70% of leather and other raw materials needed for leather shoes and handbags industry in Vietnam depend on imports. Meanwhile, the development of leather industry in Vietnam is suppressed due to scattered production and lack of skilled workers.

The Vietnamese government is committed to breaking away from the import dependence of leather raw materials and improving localization.

Earlier, media reports have reported that Vietnam's leather and footwear industry association said that Vietnam's leather shoes and handbags will reach US $12 billion this year and will achieve the expected export targets.

The export of leather shoes and handbags reached $10 billion 400 million last year, the third largest in Vietnam

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"Exports in the first quarter of this year were in good condition, leather shoes exports increased by 14%, and handbags exports increased by 18%."

DiepThanhKiet, vice president of leather and Footwear Association.

However, factors such as scattered production, underdeveloped supporting industries and lack of skilled workers have suppressed the sustainable development of leather industry in Vietnam.

Last year, Vietnam imported leather and other raw materials up to 4 billion 200 million US dollars, equivalent to 40% of the total leather exports.

At present, 70% of leather made from leather shoes and handbags in Vietnam needs to be imported. The main source of imports is South Korea, Taiwan, Italy and Thailand.

When asked whether the current problems in Vietnam and China will affect the import of leather, DiepThanhKiet said the impact is not great, because only about 6%-7% of leather is imported from mainland China.

The textile industry is also somewhat similar.

At present, only 40% of cloth and other raw materials can be purchased locally in Vietnam. Vietnam calls for $3 billion a year to import cloth and other raw materials from abroad. The main source of imports is China.

However, from the trend of cloth production to China from Vietnam, Viet Nam is consulting with other countries and organizations about the free trade agreement. The signing of the free trade agreement will make the factories that migrate to Vietnam enjoy more benefits.

In the next five years, Vietnam's raw materials will meet 50% of the demand, and the rest will be imported from Taiwan, Vietnam and Indonesia.

Some people in the industry say that because Vietnam's wage level is lower than that of China, Vietnam's demand for products is very high at home and abroad, and Vietnam will join the p Pacific Cooperation Agreement.

And the handbag industry will explode enormous potential.

PhanChiDung, head of the Light Industry Department of the Ministry of industry and trade, said that according to the government's plan, the proportion of "made in Vietnam" in leather products industry will increase to 60%-65% in 2015, and this proportion will increase to 75%-80% by 2020.

However, he admits that this goal is more difficult, but Vietnam and the European Union have identified the free trade agreement and will join the p Pacific Trade Cooperation Organization at the same time. This will greatly enhance the proportion of "Vietnam made" in the leather industry.