Workers process shoes in a FDI enterprise’s factory in
According to the latest statistics of the World Footwear Magazine in 2017, Vietnam continued to rank second among the top 10 largest footwear exporters, with 1.02 billion pairs of shoes, equivalent to 7.4 percent of the global footwear supply, said Diep Thanh Kiet, Vice Chairman of the Vietnam Leather, Footwear and Handbag Association (LEFASO).
Meanwhile, the
Export of
In 2017, the export turnover of backpacks and handbags in
Kiet said the biggest challenge for the domestic footwear-handbags industry was the low level of technology application in management and production, as compared to regional and foreign direct investment (FDI) enterprises.
The labour productivity of domestic enterprises was only equal to 60-70 percent of FDI enterprises. Most domestic firms have not joined the global supply chain; meanwhile, international brands usually tend to deeply control the global supply chain. In addition, labour costs in
Not only interfering in the price of the goods, importers were now gradually intervening in the traceability of raw materials and factories supplying machinery for production.
On the other hand, the time taken for supplying goods, product confidentiality, the level of technology used, and advantages of raw material supply are given priority to help consumers select where to place an order and process production, Kiet said.
VNA