Vietnam is world’s third largest exporter of shoes and leather

Vietnam exported US$11.7 billion worth of shoes and leather products in the first nine months of 2018, making it the world’s third largest exporter of shoes and leather, according to the Ministry of Industry and Trade (MOIT).

The ministry said the signing of a number of free trade agreements is expected to open further opportunities for Vietnam’s footwear industry to bolster its exports to the EU and CPTTP member economies.

However, the MOIT added that the Vietnamese footwear industry is also facing a number of difficulties, such as rising labour costs and low productivity compared with regional countries.

In addition, technological advances are expected to reduce the number of workers required in the industry.

According to Nguyen Duc Thuan, Chairman of the Vietnam Leather, Footwear and Handbag Association (Lefaso), Vietnamese companies will face intense competition from rivals in the same industry in the future.

Lefaso vice Chairwoman Phan Thi Thanh Xuan stated that enhancing productivity by employing new management methods and technologies could double the sector’s growth.

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