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Footwear will continue to be the main industry in Vietnam

According to Vietnamese Deputy Prime Minister Trinh Dinh Dung (Drinh Dinh Dung) in a meeting with the Vietnam Footwear, Leather and Leather Association (Lefaso), the representative of the footwear industry in Vietnam said that the footwear industry is of great significance in Vietnam's economic growth and will continue to be Vietnam's leading industry, develop export and create employment opportunities. . According to Nguyen Duc Thuan, chairman of the Lefaso Association, Vietnam will flourish with its advantages in labor resources, cheap labor costs and opening up to attract investment policies.
At present, the industry has 700 enterprises and employs 1.5 million laborers, of which about 200 foreign-funded enterprises employ 750,000 laborers, and its turnover accounts for 70% of total exports. In 2015, the export value of leather, shoes and handbags in Vietnam was US$14.9 billion. In the first nine months of this (2016), the export amount was US$11.72 billion.
Currently, Vietnam's leather and footwear industry accounts for 10% of total exports, with an average annual growth rate of 10%. It is estimated that the export value of this industry will reach 20 billion U.S. dollars by 2020. Vietnam footwear products have been sold to nearly 50 countries.
In the United States, the European Union, Japan and other major markets, the market share of Vietnam footwear continues to grow, second only to China. The export of Vietnamese handbags has also grown rapidly. At present, it has already been exported to nearly 40 countries. The export amount is about US$15 billion, and its raw material import amount is US$4.5 billion.
However, the above-mentioned production development still encounters many difficulties, including the fact that the auxiliary industry has not yet developed. The precision machinery manufacturing industry is also unable to produce the machines and molds required for the above-mentioned industrial production. The leather and footwear manufacturers still have to import machinery from abroad. The cost is very high; in addition R&D (investment in R&D) has not been given adequate attention, and the quality of manpower training cannot meet the needs of the company.