According to Cao Quốc Hưng, Deputy Minister of Industry and Trade that the footwear and leather sector needs to expand supporting industry for reducing the dependence on raw material import, giving a boost to high-value experts and increase competitiveness.
At the Vietnam Leather, Footwear and Handbag Association (Lefaso) conference, Hung gave a statement that as a part of the fashion industry which is rapidly changing, the footwear and leather sector must focus on expanding a suitable supporting industry though it might take some time as well as resources.
Hung also said that the Ministry of Industry and Trade would extend their help to domestic firms for building a development strategy for the footwear & leather supporting industry and will also help in raising incentive policies for small and medium-size business.
Hung advised the association to improve links between foreign-invested sector & domestic producers and eventually helping them to participate deeply in a global value chain.
The footwear and leather industry of Vietnam is heavily dependent on imports of raw material.
The statistics of the association shows that 60% of raw materials for the leather & footwear industry are bought from foreign countries as supporting industry’s existing production capacity is modest.
Free trade agreements like the EU-Việt Nam Free Trade Agreement (EVFTA) & Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) were widening the doors for exporting Vietnam footwear, said Hung.
Nevertheless, the sector should focus on expanding supporting industry coupled with using of advanced technologies pertinent to production for enhancing competitiveness, deal with technical obstacles for boosting exports, stressed Hung.