Hanoi (VNA) – Vietnam’s leather and footwear sector is set to continue tothrive in 2019, according to the VietnamLeather, Footwear and Handbag Association (LEFASO).  

In 2018, footwear and leather exports hitnearly 20 billion USD, a rise of 8.3 percent year-on-year.

The US remained Vietnam’s largest export marketwith more than 6.5 billion USD, followed by the European Union market (morethan 5 billion USD) and China, Japan and the Republic of Korea.

LEFASO Chairman Nguyen Duc Thuan said demand inVietnam’s major markets will remain high in 2019. Tariff lines within ASEAN havebeen eliminated and there are plans to cut tariffs via free trade agreementswith other markets, moves which will drive for the sector’s growth.

Meanwhile, orders in leather, footwear andhandbags are likely to shift from China to Vietnam as China has cut investmentincentives for the garment and footwear sector, in addition to opportunitiesfrom the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP) and the EU- Vietnam Free Trade Agreement (EVFTA), which is hoped to beinked this year, said LEFASO Vice Chairman Diep Thanh Kiet.

Foreign investment in Vietnam in leather andfootwear is projected to rise due to US-China trade tension. It is importantfor Vietnamese firms to take advantage of the opportunities to bolsterproductivity and exports, Kiet noted.

LEFASO forecasts showed that in 2019, theleather and footwear sector is expected to earn 21.5 billion USD from exports,accounting for 9 percent of Vietnam's total exports and being among 10 leadingexport items of the country.-VNA