Attractive Vietnam lures more major footwear companies
The Footwear Distributors and Retailers of America association travelled to Vietnam to discuss with footwear companies the benefits that could be brought about by the Transpacific Partnership (TPP), once it is passed.
At the meeting, jointly coordinated by the Vietnam Leather, Footwear and Handbag Association (Lefaso), Wolverine Worldwide’s vice president of global sourcing, Scott Thomas, said while 75% of the company’s supplies currently come from China, the group has plans to cut it to a third by 2020 and leave the rest to Vietnam, which currently supplies 15%.
Taiwanese group Ever Rite launched production Vietnam in 2013 after China and Indonesia and now runs 57 assembly lines here. It said it plans to add more in the near future. The delegation heard wages are around 40% lower than in China.
Footwear is Vietnam’s third most-lucrative export industry in terms of revenue and generated $8.5 billion in 2013.
Lefaso’s vice chairman, Diep Thanh Kiet, said Vietnam’s industry will have to develop a better material base and business skills to capitalise on the opportunities as it doesn’t yet produce enough leather, polyvinyl chloride (PVC), polyurethane (PU) and cloth.
