The Secretary General of the Vietnam Leather, Footwear and Handbag Association (LEFASO) Phan Thi Thanh Xuan said that leather and footwear industry in Vietnam expects a good and profitable year in 2018 due to various favorable factors.
She specifically pointed out the expected signing of the Vietnam-EU Free Trade Agreement (EVFTA) in mid-2018, in this agreement the Vietnam shoes that are exported to EU would have benefit of 3.5-4.2 percent tariff compared to other competitors.
Xuan informed that when EVFTA would be effective, the tariff incurred on sports shoes made in Vietnam that comprises for two-thirds of the country’s footwear export to EU would instantly become zero. The same tariffs’ rate would be applicable to the handbag products.
“The rules on origin remain the same as those under the Generalized Scheme of Preferences (GSP), which is a favorable condition, so I am sure that the flow of orders to Vietnam will increase,” Xuan said, by putting emphasis on the question how domestic companies work to optimize the opportunities.
As per a latest statistics released by the World Footwear Magazine in 2017, Vietnam still continues to enjoy second position among top 10 largest footwear exporters of the world. They have exported about 1.02 billion pair of shoes in 2017 which is similar to 7.4 percent of global footwear supply.