Building an ecosystem and leveraging FTAs ​​to boost footwear exports.

Recently, the Department of Industry and Trade of Hai Phong city, in coordination with the Multilateral Trade Policy Department of the Ministry of Industry and Trade , organized a "Seminar on direct exchange with business leaders in provinces and cities regarding the ecosystem for leveraging FTAs, including the EVFTA Agreement, in the footwear sector in Hai Phong".

Deputy Director of the City's Department of Industry and Trade, Nguyen Cong Han, provided information on footwear export activities in the area.

At the seminar, Deputy Director of the Department of Industry and Trade of Hai Phong city, Nguyen Cong Han, stated that Hai Phong 's footwear industry is one of the traditional industries identified as a key product group, with an average annual growth rate of 10% - 15%. Hai Phong was once considered the capital of the footwear industry, always pioneering and leading the country in the development of the footwear industry, as well as attracting FDI investment with footwear and product manufacturing complexes re-established with foreign investment...

Currently, Hai Phong's main export markets for footwear are Europe, China, Japan, South Korea, and Australia. Regarding certificates of origin, the Hai Phong Department of Industry and Trade also stated that in the first eight months of 2024, the total export value of footwear to FTA markets by businesses in the city and some neighboring provinces increased by 8% compared to the same period. In addition, some markets experienced growth rates exceeding 10%, such as Europe (13%), South Korea (13%), ASEAN (17%), and Hong Kong (27%).

However, based on practical observations, the leaders of the Hai Phong Department of Industry and Trade believe that domestic footwear businesses have not yet been able to participate in the production chains of FDI enterprises as well as the global value chain.

Furthermore, the technology and equipment in the footwear industry are only at an average level (mainly imported from China (23.68%) and a small percentage from Japan, Germany, and Italy). The technological level of the footwear industry is also only average. Labor productivity and production efficiency in the industry are limited in both the short and long term.

“ Production is still largely based on processing for foreign footwear and handbag manufacturers; Vietnamese branded footwear and handbag exports have only increased in quantity, not significantly in quality; the ability to meet regulations for these products as committed in Free Trade Agreements is not yet 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 argued that the seminar is a prerequisite for building a sustainable development ecosystem for the leather and footwear industry, making good use of the FTAs ​​that are currently and will be implemented.

Mr. Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department of the Ministry of Industry and Trade, introduced the ecosystem for leveraging FTAs.

Also at the seminar, leaders from the Multilateral Trade Policy Department (Ministry of Industry and Trade), along with representatives from the Import-Export Department (Ministry of Industry and Trade), the Vietnam Leather and Footwear Association (Lefaso), and businesses, exchanged and discussed issues related to building an ecosystem to leverage FTAs.

Mr. Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department of the Ministry of Industry and Trade, introduced the ecosystem for leveraging FTAs, as well as outlining the methods, roadmap for building it, and the benefits derived from building and operating such an ecosystem.

Deputy Director Ngo Chung Khanh suggested that it is necessary to establish connecting groups between export businesses and relevant agencies; focus on brand building 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 and paying attention to sustainable development…

Also at the seminar, representatives from government agencies and businesses exchanged and discussed issues raised within the ecosystem of leveraging FTAs.

Source: https://congthuong.vn/xay-dung-he-sinh-thai-tan-dung-cac-fta-de-thuc-day-xuat-khau-da-giay-341589.html