Vietnam's footwear exporters optimistic; experts skeptical

Domestic firms have received enough orders for 2022 second quarter, according to Phan Thi Thanh Xuan, vice chairwoman of the Vietnam Leather and Footwear Association (LEFASO). This is positive sign for factories to speed up production and regain growth pace after a long period of stagnation caused by the pandemic, he said.

General statistics office (GSO) data showed that in January this year, domestic firms exported $390.3 million worth of handbags and umbrellas and over $1.93 billion worth of footwear products.

Many big brands like Nike and Adidas have shown interest in increasing their output in Vietnam from early this year, according to a news agency report.

The LEFASO representative said Vietnam has become the biggest production hub for Nike by producing 50 per cent of its products. Production and export of Nike account for about 30 per cent of the export revenue of the whole sector, and create jobs for about 300,000. Nike has also revealed plans to expand operations in the country.

Meanwhile, government support packages have yet to show effectiveness, while orders from large brands often have high quality standards, experts said.

To ease difficulties facing businesses during the recovery process, Xuan said the government should promptly implement the 350-trillion-VND ($15.38 billion) support package for economic recovery and development and make it easier for businesses to access.

At the same time, it is necessary to review and adjust policies that hinder production and export activities such as exchange rate and tax, while issuing new policies to support businesses to make full use of free trade agreements to increase exports, she said, stressing the need to improve the quality of human resources.

Xuan also underlined the need to continue improving logistics infrastructure system, designing better strategies for material development, attracting more investment to industrial parks, and researching new product designs and materials.

Fibre2Fashion News Desk (DS)