According to the Vietnam Leather, Footwear and Handbag Association (Lefaso), the country’s leather industry is enjoying good chances to benefit from the shift of orders from China as a result of the tendency of moving to the production of high-tech goods.
Illustrative image (Photo: VNA)
Industry sources also said the signing of a number of trade
agreements like the Vietnam
– EU Free Trade Agreement (EVFTA) and the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP) is ushering in chances of
development for Vietnam,
especially in attracting investment and boosting export to the markets in the
EU and CPTPP members.
Lefaso president Nguyen Duc Thuan
affirmed that export activities of Vietnam’s leather industry are
seeing a stable growth with positive signs for the second half of this year and
the years to come. The forecast for the world economy in 2018 is rosy, that is
why the demand in Vietnam’s
major export markets like the US,
the EU, China, Japan and the Republic of Korea
will be better than that in 2017.
China is believed to continue the policy of
reducing investment incentives in the industries of garment and leather to
focus on high-tech ones, and orders for footwear and handbags is expected to
keep moving from China to Vietnam in
anticipation of chances created by those FTAs. However, Vietnam’s
leather industry is now facing numerous difficulties like rising labor costs
and low productivity compared to other countries in the region. Especially, the
Fourth Industrial Revolution will also cause impact on the enterprises in the
industry as they will head to investing in modern machinery and reducing work
hands.
The leather industry’s production is
planned to turn out about 279 million pairs of footwear in this year, with 72
million pairs in the third quarter and 80 million pairs in the last.
The first half of this year continued to witness
a growth in the production by the industry, with 127.4 million pairs produced,
an increase of 5.1% year-on-year. They brought back US$9.45 billion to the
country, rising by 8.4% compared to the same period last year. The export
revenue of this kind of product is forecast to reach US$19.5 billion, or 10%
higher than the figure recorded in 2017.
Source: NDO
Prime Minister Pham Minh Chinh attended a groundbreaking ceremony for an electronic printed circuit board (PCB) factory at Da River Left Bank Industrial Park in Hoa Binh province on April 13. The electronic PCB factory is invested by Japan's Meiko Group at a total cost of 200 million USD.
In the first quarter of 2024, the credit institutions in the province have actively deployed the legal documents of the State and the State Bank relating to currency, credit and interest rates. At the same time, they have promoted the capital mobilization, focusing on the solutions to expand the credit investment along with strengthening the credit quality management, lending to priority programs to promptly meet the capital needs for export - business and consumer demand during Tet in 2024.
Outside the key economic region of Hoa Binh, yet Lac Son district has utilised its potential and strengths regarding labour, land, and transportation connectivity to attract investment to the locality, contributing to promoting socio-economic development.
In a move to expedite the execution and disbursement of the 2024 capital plan for ODA projects, aiming for a disbursement rate of over 90% of the allocated funding, the Hoa Binh People's Committee issued Document No. 483/UBND-KTN on April 3, 2024, regarding such efforts.
Nguyen Van Thap from Kim Duc hamlet, Vinh Tien commune, Kim Boi district, has built the brand of Hoa Qua Son for local fruits. His efforts have brought about income for his family and generated job opportunities for locals, helping hundreds of households escape from poverty.
The Hoa Binh administration was entrusted by the Prime Minister with a budget of 3.43 trillion VND (142.91 million USD) for investment in 2024. The provincial People's Council approved nearly 3.76 trillion VND, which has been meticulously allocated to projects, achieving 100% of the assigned capital plan.