According to the Vietnam Leather, Footwear and Handbag Association (LEFASO), Vietnamese leather and footwear industry reached at US$ 14, 5 billion on export last year when the above Free Trade Agreement (FTAs) take effect. Illustrative photo:SGGP
Free Trade Agreement (FTA) was signed soon that is predicted to open up golden opportunities and provide new boosts for Vietnam’s leather and footwear companies to develop in both scale and quality in 2016.
The United States, Europe Union (EU) and Japan still are major export traditional markets to Vietnam. Especially, Vietnam exported products of sport shoes, canvas shoes and leather footwears to China reached at US$ 600 million in 2015.
Currently, most of domestic and foreign enterprises have a tendency towards production in rural areas to take advantage of labor source and expand production scale. At present, enterprises from Japan and Taiwan (China) have invested into building the large scale factories.
It was note that Vietnam is pushing up negotiations of some trade agreements, including the Trans-Pacific Strategic Partnership Agreement (TPP), the Vietnam - EU Free Trade Agreement and the Free Trade Agreements will affect strongly to Vietnamese leather- footwear industry development.