Recently, the Department of Industry and Trade of Hai Phong city coordinated with the Department of Multilateral Trade Policy - Ministry of Industry and Trade to organize a "Direct discussion with business leaders in provinces and cities about the ecosystem to take advantage of FTAs, including the EVFTA Agreement in the leather and footwear sector in Hai Phong".
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| Deputy Director of the City Department of Industry and Trade Nguyen Cong Han informed about leather and footwear export activities in the area. |
At the seminar, Deputy Director of the Department of Industry and Trade of the city Nguyen Cong Han said that the footwear industry of Hai Phong is one of the traditional industries identified as a key product group, with an average annual growth rate of 10% - 15%. Hai Phong used to be considered the capital of the footwear industry, always pioneering and leading the country in developing the footwear industry, as well as calling for FDI investment with footwear production complexes and products re-established by foreign investment factors...
Currently, the main footwear export markets of Hai Phong are Europe, China, Japan, Korea, Australia, etc. Regarding the certificate of origin of goods, the leader of the Department of Industry and Trade of Hai Phong also said that in the first 8 months of 2024, the total export turnover of footwear products to markets with FTAs of enterprises in the city and some neighboring provinces increased by 8% over the same period. In addition, some markets have a growth rate of over 10% such as: Europe (13%), Korea (13%), ASEAN (17%), Hong Kong (27%) ...
However, judging from reality, the leader of the Hai Phong Department of Industry and Trade said that domestic footwear enterprises have not been able to participate in the production chain of FDI enterprises as well as the global value chain.
Not only that, the technology equipment of the leather and footwear industry is only at an average level (mainly imported from China (23.68%) and a small proportion from Japan, Germany, Italy). The technology level of the leather and footwear industry is also only at an average level. Labor productivity as well as production efficiency of the industry are still limited in the short and long term.
“ Production is still mostly processing for foreign footwear and handbags; Vietnamese branded footwear and handbags exported have only increased in quantity, not much in quality; the ability to meet the regulations for this item according to the commitments in the Free Trade Agreements is not high. This leads to the risk of reducing the competitiveness of the footwear industry in the international market” – Mr. Nguyen Cong Han pointed out the reality and said that the Seminar is a premise to build a sustainable footwear industry ecosystem, making good use of the FTAs that are being and will be implemented.
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| Mr. Ngo Chung Khanh - Deputy Director of Multilateral Trade Policy Department, Ministry of Industry and Trade introduced the Ecosystem to take advantage of FTAs. |
Also at the Seminar, leaders of the Multilateral Trade Policy Department (Ministry of Industry and Trade) together with representatives of the Import-Export Department (Ministry of Industry and Trade), the Vietnam Leather, Footwear and Handbag Association (Lefaso) and businesses exchanged and discussed issues related to building an ecosystem to take advantage of FTAs.
Mr. Ngo Chung Khanh - Deputy Director of the Multilateral Trade Policy Department of the Ministry of Industry and Trade introduced the Ecosystem to utilize FTAs as well as provided methods, roadmap for construction and benefits from building and operating the ecosystem to utilize FTAs.
Deputy Director Ngo Chung Khanh said that it is necessary to establish connecting groups between export enterprises and relevant agencies; focus on building brands and have a systematic and effective strategy; build an ecosystem for the industry (private agencies, localities, associations, major export companies, consulting companies, farmers, input material suppliers, etc.); focus on improving quality, paying attention to sustainable development, etc.
Also at the Seminar, representatives of agencies and businesses exchanged and discussed issues raised in the ecosystem of taking advantage of FTAs.
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