Major footwear investment9 October 2002
The footwear industry is to be stimulated with an investment of VND26,225 billion (US$1.71 billion) after the government approved the industry's development strategy until 2010. This money will be used to help shoemakers increase their production capacities, improve quality and renew technology and equipment. The industry will also focus on human resources development, designs and promotion of their trademarks on the international market. VND4,600 billion (US$300 million) of the total will be invested in the tanning industry and material development to meet the target of domestic materials accounting for 70-75% of footwear content until 2010. It is expected that the industry will produce 720 million pairs of shoes and 80.7 million bags by 2010, earning $6.2 billion from exports. Total export turnover stood at $1.26 billion in the first eight months of this year, an increase of 20.9% over last year. Four major markets for Vietnam's footwear industry are the EU, the US, Japan and Russia. Export value to the EU accounts for 80% of the industry's total export turnover while footwear makers now face many difficulties in the Russian market due to a high tax rate.