COVID-19 woes: Footwear exports likely to fall short of target

Footwear exports this year are unlikely to hit the target of US$24 billion because of the fallout of the Covid-19 pandemic.

The Viet Nam leather and footwear industry will continue to face difficulties this year because of the COVID-19 pandemic, according to the Ministry of Industry and Trade. 

According to data from the General Department of Customs, exports in the first eight months were worth $10.8 billion, a 9.46 per cent fall year-on-year, as the two largest markets, the US and the EU, cut their orders.

Other top importers such as China and Japan also reduced orders.

The top buyer of Vietnamese footwear, the US bought $3.43 billion worth, or 8.58 per cent less year-on-year, in the first seven months, the latest period for which the customs has figures for individual countries.

The EU’s imports were down 32.5 per cent to $2.21 billion as the two biggest individual markets, Belgium and Germany, cut orders by 17.3 per cent and 10.4 per cent.

Imports by China were down more than 19 per cent to $1.14 billion.

Japan’s imports decreased by 2.1 per cent to $551.74 million.

Tran Quang Vinh, chairman of the Phuc Yen Shoes Joint Stock Company, said import of feedstock had resumed, but, without buyers, production has dropped by 40-50 per cent.

Most of the production is targeted at export markets, and so it is difficult to sell in the domestic market due to high prices, he said.

Diep Thanh Kiet, deputy chairman of the Viet Nam Leather, Footwear and Handbag Association (Lefaso), said the footwear and handbag industry has the capacity to produce over 1.1 billion pairs of shoes and nearly 400 million backpacks and handbags.

 

“The domestic market cannot absorb this number.”

The ministry forecast that the industry would continue to face difficulties until the end of the year, and relief depends on the US and EU’s ability to control the pandemic.

It should improve its supply chain performance to take advantage of the milestone Viet Nam - EU Free Trade Agreement, Kiet said.

The deal took effect on August 1.

The pandemic remains unpredictable, but if enterprises work hard to find partners and improve their competitiveness, they still have excellent prospects, experts said.

Businesses and experts said trade promotion activities and support from authorities should both be enhanced.

Last year exports were worth nearly $19 billion, with sports shoes accounting for a large share. — VNS

VN textile, footwear companies confident to cope with new COVID-19 wave

VN textile, footwear companies confident to cope with new COVID-19 wave

Armed with experience from coping with the first wave of the COVID-19 epidemic, many textile and footwear enterprises are quietly confident they can alter their plans as required and find new markets to cope with the second.

Garment, footwear and woodwork companies look forward to receiving orders in H2

Garment, footwear and woodwork companies look forward to receiving orders in H2

After half a year of struggling to survive difficulties caused by Covid-19, Vietnamese enterprises are hoping that more orders will come over the next six months.

 
 

Other News

.
Inconsistencies deter power plan feasibility
Inconsistencies deter power plan feasibility
BUSINESSicon  14/10/2021 

Power source development in recent years has been at odds with load distribution, and many coal-fired power plants expected to operate in the last five years are behind schedule.

Gigantic lifeline en route for essential businesses
Gigantic lifeline en route for essential businesses
BUSINESSicon  14/10/2021 

In a bid to help the country recover after the economy grew at a very low level in the third quarter, a huge financial support package is to be offered to enterprises whose performance is a backbone of economic growth.

Positive signs for year-end car shopping
Positive signs for year-end car shopping
BUSINESSicon  14/10/2021 

Car sales in Vietnam increased by 52 percent last month after five consecutive months of decline, showing positive signs for the car market at the end of the year.

WB lowers Vietnam’s GDP growth forecast to 2-2.5 percent this year
WB lowers Vietnam’s GDP growth forecast to 2-2.5 percent this year
BUSINESSicon  13/10/2021 

Vietnam’s GDP growth forecast for this year has been lowered to 2-2.5 percent, according to the World Bank's October 2021 Vietnam Macro Monitoring.

Vietnam’s rice price surges, surpasses that of Thailand
Vietnam’s rice price surges, surpasses that of Thailand
BUSINESSicon  13/10/2021 

The export price of Vietnam’s 5% broken rice has soared recently, surpassing that of Thailand and far outstripping the rice prices of India and Pakistan, according to the Vietnam Food Association.

Local authorities urged to set green corridor for domestic flights
Local authorities urged to set green corridor for domestic flights
FEATUREicon  13/10/2021 

The first commercial flights have been provided in the new normal period. However, the application of different regulations in different localities have caused problems.

Vietnamese capable of making high tech products
Vietnamese capable of making high tech products
FEATUREicon  14/10/2021 

Many Vietnamese enterprises are diligently researching and developing Make in Vietnam products with high technology content.

Commodity exports via e-commerce promoted during COVID-19 pandemic
Commodity exports via e-commerce promoted during COVID-19 pandemic
BUSINESSicon  13/10/2021 

Representatives from State management bodies and companies speak about the advantages and challenges Vietnamese businesses face in e-commerce, especially commodity exports.

VIETNAM BUSINESS NEWS OCTOBER 13
VIETNAM BUSINESS NEWS OCTOBER 13
BUSINESSicon  13/10/2021 

Vietnam grasps opportunities to expand agricultural export market

Vietnam to further develop biotechnology industry by 2030
Vietnam to further develop biotechnology industry by 2030
BUSINESSicon  14/10/2021 

The Government has approved a plan to further develop the biotechnology industry in Vietnam, levelling it up to that of advanced industrial countries by 2030. 

Tax cut proposed to stabilise domestic petrol price
Tax cut proposed to stabilise domestic petrol price
BUSINESSicon  13/10/2021 

Calls have been made for tax cuts to stabilise domestic fuel prices as global oil prices see continual increases.

PM says Gov't to stand with businesses during pandemic
PM says Gov't to stand with businesses during pandemic
BUSINESSicon  13/10/2021 

Prime Minister Pham Minh Chinh congratulated and sent his best regards to all Vietnamese entrepreneurs to mark Vietnam Entrepreneurs' Day (October 13) during a meeting in Hanoi yesterday. 

SOE equitisation slow this year due to COVID-19
SOE equitisation slow this year due to COVID-19
BUSINESSicon  13/10/2021 

The outbreak of COVID-19 in many localities has delayed the equitisation of State-owned enterprises (SOEs).

Unemployment, underemployment unprecedentedly high
Unemployment, underemployment unprecedentedly high
BUSINESSicon  13/10/2021 

The number of employed people in Q3/2021 fell sharply compared to the previous quarter and the same period of last year, while unemployment and underemployment rates increased to an all-time high.

Intel, Samsung eye fully running HCM City plants in late November
Intel, Samsung eye fully running HCM City plants in late November
BUSINESSicon  12/10/2021 

Intel Corp. and Samsung Electronics Co. are both aiming to resume full operations of their HCM City plants by the end of November.

FDI inflow into Vietnam still on upturn trend
FDI inflow into Vietnam still on upturn trend
BUSINESSicon  12/10/2021 

Despite impacts of the COVID-19 pandemic, the inflow of foreign direct investment (FDI) into Vietnam still rose 4.4 percent year on year in the first nine months of 2021 to 22.15 billion USD.

To have free trade zone, Hai Phong needs special mechanism
To have free trade zone, Hai Phong needs special mechanism
BUSINESSicon  12/10/2021 

Some National Assembly Deputies expressed their concerns about the establishment of a free trade zone (FTZ) in Hai Phong at a National Assembly Standing Committee session on October 11.

In new normal, businesses are afraid of ‘sub-licenses’
In new normal, businesses are afraid of ‘sub-licenses’
FEATUREicon  13/10/2021 

Most enterprises can now resume usual operations as Vietnam has entered the new normal period. However, their production and business have been obstructed by ‘sub-licenses’, or new regulations set by agencies.

Two thirds of HCM City industries reopen
Two thirds of HCM City industries reopen
BUSINESSicon  12/10/2021 

The number of enterprises reopening at export processing zones and industrial parks in HCM City has reached 66.8 per cent, while at the Saigon Hi-Tech Park the rate is 74.3 per cent.

Government signs decision on special investment incentives
Government signs decision on special investment incentives
BUSINESSicon  12/10/2021 

Standing Deputy Prime Minister Pham Binh Minh has just signed Decision No 29/2021/QĐ-TTg of the Prime Minister on special investment incentives.

 
 
 
Leave your comment on an article

OR QUICK LOGIN