|
Local shoemakers can’t find foothold
The export slowdown has had local shoemakers turn their attention to the domestic market, which has been dominated by foreign products, particularly those from China and Thailand.
The General Statistics Office has noted a dramatic decrease in orders from Viet Nam’s key export markets in the US, Europe and Japan. Footwear exports generated US$658 million in the past two months, a decrease of 7.3 per cent from the same period last year.
Vietnamese footwear producers have not been able to carve out a strong presence in the domestic market because foreign offerings are better designed and less costly.
Huynh Quang Thai, a footwear trader, says he delivers goods directly to small booths at the markets in District 5 for an average of VND85,000 ($5) for trademark pairs made in Viet Nam and those are sold to customers at around VND140,000 ($8.2). However, buyers pay just VND65,000 ($3.8) for products with diverse designs from China.
Vu Van Minh, general director of Viet Nam Shoes Company, says footwear consumption in the domestic market has reduced by 30-40 per cent compared with the same period last year.
Many domestic manufacturers, wholesale and retail businesses, as a result, are in deep trouble and facing the threat of closure.
Financial troubles have caused consumers to tighten their budgets and Chinese shoes companies facing export difficulties in major markets are now switching their focus to the Vietnamese market, hence domestic footwear makers are suffering, Minh says.
Independent market observers also say local enterprises have lost significant market share to foreign competitors because they lack distribution networks, and have not yet built up their trademarks in the local market.
Footwear made in Thailand also have a major presence in the Vietnamese market, offering, like the Chinese, a wide variety of designs at lower costs.
A footwear wholesaler in An Dong market says Thai footwear costs only half as much as similar locally-made products.
According to the Viet Nam Leather and Footwear Association (Lefaso), domestic tanneries are capable to meet just 20 per cent of national demand. Viet Nam, therefore, has to import 80 percent of its tanned leather from foreign countries.
VietNamNet, viet nam news
|
