Exports of footwear: Towards 2.5 billion USD mark

​According to Dong Nai Department of Statistics, top of exports of Dong Nai in 2015 in the first 3 months are shoes with approximately 545 million USD, an increase of 13% over the same period of 2014. According to the enterprise footwear in the province, the export orders this year produced abundant.

* Create new record

In 2014, footwear exports of Dong Nai in the group leader with 2.23 billion USD, up by over 19% compared with 2013. The production of footwear enterprises both domestic and FDI companies are expanding production and many large orders from other countries tend to shift to Vietnam. Economic experts predict the 2015 shift of orders to Vietnam will be thicker, including Dong Nai. The goal of this movement be to enjoy preferential tariffs for a series of free trade agreements Vietnam has signed already in force and to prepare for TPP (Trans-Pacific Economic Partnership Agreement) expected to complete negotiations by the end of 2015.

Mr. Mai Anh Tu, Director of Hung Dat Footwear Company Limited, said: "the company's footwear exports to many markets and this year's line up is no shortage to do. The company is continuing to expand and improve the quality of production in order to be able to get hard and large orders ". Footwear export market of enterprises in Dong Nai in the first months was extended to many countries in the world rather than focusing on a few markets like the previous year, meaning that businesses no longer have to worry nervous about doing the hard sell goods and have more opportunity to choose the market highly profitable to sign export contracts.

"Goods of the company exported to many countries, but the focus in the European market even more. The company has received orders to produce between the third quarter of 2015. Footwear exports this year more favorable for further tariff reduction "- Mr. Le Dinh An, Head of Business Company Limited Tan Hop shoes (Bien Hoa City) said. Export market of Dong Nai major footwear in nearly 3 months in be USA, UK, Belgium, Germany, Netherlands, Japan.

* Still not proactive

Export turnover of footwear destination with 2.5 billion USD in this year be not too difficult for enterprises in Dong Nai. However, many businesses are not happy when exports grew but profits shrinking because of inactive materials to produce.

"Most businesses are abundant orders and export rose, but profits fell. The paradox is due to the raw material producer has to import a lot, orders must enter at least 40-50% orders, they must import raw materials to 80%. Last time, the price of imported raw materials, logistics, power continued to increase, pushing up the cost of products, while export prices to markets increased very little "- Mr. Tran Duc Dan, Director of the Casum Shoes Joint Stock Company (Bien Hoa), sharing.

The majority of manufacturing enterprises, export of footwear are expected TPP negotiations will finish at the end of the year, when the tax was exported to many markets will plummet. But behind it is still a big worry, as industry supporting for shoes can not be developed quickly to meet the needs of local businesses. Currently there are exports to the United States that partners require 50% of domestic production of raw materials.

Some economists said that the business wants to produce sustainable footwear, enjoys the privilege to join the free trade agreement, the Government should have specific policies to attract supporting industry development, still existing as only thrive tip.