Thanks to Free Trade Agreements (FTAs), Vietnam’s leather, footwear and handbag industry reached over USD 15 billion in export value in the first 8 months. Thus, the target of 22 billion USD for the whole year is achievable.
|Manufacture of footwear for export.|
Vietnam is currently the 2e global footwear exporter. Exports to markets where Vietnam has concluded free trade agreements like the EU-Vietnam Free Trade Agreement (EVFTA), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnam – United Kingdom Free Trade Agreement (UKVFTA)… expected to grow by 10-20%.
It is on this basis that the national sector has set itself a growth target of more than 15% this year.
“For this year, we are targeting an export value of 22-23 billion USD. In 2023, 25 billion USD are expected”said Nguyên Duc Thuân, president of the Vietnamese Leather, Footwear and Handbag Association.
“In the EU market, Vietnamese leather and footwear industry products enjoy 3.5-4.2% lower tax rates than other competitors. Therefore, abiding by the principle of origin, ensuring product quality is a responsibility of every company”said MP Bernd Lange, chairman of the European Parliament’s Committee on International Trade.
The great benefit of the reduction or elimination of tariff barriers has helped Vietnamese leather and footwear products to represent more than 80% market share in the EU. Based on this, this Vietnamese industry is aiming for an export turnover to the EU of 35 billion USD by 2025.