The Ministry of Industry and Trade (MOIT) has vowed to tackle domesticleather businesses' difficulties in expanding their businesses, theVietnam Economic News reported on March 13.
Building exclusiveindustrial zones with waste treatment facilities for leather businessesis one of the solutions to implement the master plan for Vietnameseleather and footwear sector development towards 2020 with a vision to2025, which has been approved by the MOIT. So far, however, the solutionhas not been taken due to a lack of capital and environmental factors.
FormerDeputy Minister of Industry and Trade Do Huu Hao said that leatherproduction facilities create solid, liquid waste and exhaust fumes, thetreatment of which requires specific technologies, therefore almost noprovince wanted to encourage investment in leather production.
Althoughleather production has grown in recent years, leather businesses stillface numerous difficulties in expanding production due to the lack ofexclusive industrial zones. Leather businesses still fail to cooperatewith each other in dealing with environmental problems. Building its ownwastewater treatment facility is beyond the financial capacity of asingle leather business.
Bui Van Duc, Chairman of the Board atthe Sagoda Leather Footwear Joint Stock Company, said: “We are seekingpossibilities of investing in a leather factory. We have surveyed manylocalities but none of them supported our project, so we have not found aplace to build the factory.”
Environmental problems havehindered the development of leather businesses. Specific environmentalstandards which can be applied to leather businesses are still lacking.Meanwhile, data from the Vietnam Leather, Footwear and HandbagAssociation (LEFASO) show that the whole country currently has 35leather businesses, 62 percent of which are small-to-medium sizedprivate companies which are financially incapable of investing inadequate waste treatment systems.
According to LEFASO SecretaryGeneral Phan Thi Thanh Xuan, leather businesses currently are capable toproduce 350 million square feet (sqft) each year, meeting 40 percent ofthe amount required to make leather products for export.
It isexpected that footwear businesses will need 700-750 million sqft ofleather by 2015 and the demand will continue to increase in the ensuingyears. Therefore, if domestic leather businesses do not invest inexpanding production, they will be able to meet a lower percentage ofthe actual demand.
Developing the leather industry is necessaryto increase the export value of Vietnamese footwear. Trade agreements,especially the Trans-Pacific Partnership Agreement (TPP), require exportgoods to meet specific requirements in terms of origin. So, Vietnameseleather and footwear businesses will be unable to make the most ofadvantages from these agreements if they fail to produce input materialsrequired for production.
Aware of the important role of theleather industry to the development of businesses which make footwearand handbags for exports, the MOIT has taken the initiative in seekingsolutions to boost domestic leather production. At a recent meeting heldto discuss measures to develop the domestic leather industry, DeputyMinister of Industry and Trade Ho Thi Kim Thoa said that the MOIT wouldaccompany leather businesses through difficulties and create favorableconditions for them to expand production.
Deputy Minister Ho ThiKim Thoa required the Light Industry Department and LEFASO toaccelerate the formation of exclusive industrial zones for leatherbusinesses. She said that leather businesses should concentrate oncreating products of high value.
She requested the Ministry ofNatural Resources and Environment and the Ministry of Science andTechnology to propose suitable environmental standards which can beapplied to leather businesses and deal with problems currently facingthem.
Exclusive industrial zones for leather businesses remain adesire which has not come true. The MOIT’s determination to untie theseknots aims to promote the sustainable development of the entire leatherand footwear sector.-VNA
Building exclusiveindustrial zones with waste treatment facilities for leather businessesis one of the solutions to implement the master plan for Vietnameseleather and footwear sector development towards 2020 with a vision to2025, which has been approved by the MOIT. So far, however, the solutionhas not been taken due to a lack of capital and environmental factors.
FormerDeputy Minister of Industry and Trade Do Huu Hao said that leatherproduction facilities create solid, liquid waste and exhaust fumes, thetreatment of which requires specific technologies, therefore almost noprovince wanted to encourage investment in leather production.
Althoughleather production has grown in recent years, leather businesses stillface numerous difficulties in expanding production due to the lack ofexclusive industrial zones. Leather businesses still fail to cooperatewith each other in dealing with environmental problems. Building its ownwastewater treatment facility is beyond the financial capacity of asingle leather business.
Bui Van Duc, Chairman of the Board atthe Sagoda Leather Footwear Joint Stock Company, said: “We are seekingpossibilities of investing in a leather factory. We have surveyed manylocalities but none of them supported our project, so we have not found aplace to build the factory.”
Environmental problems havehindered the development of leather businesses. Specific environmentalstandards which can be applied to leather businesses are still lacking.Meanwhile, data from the Vietnam Leather, Footwear and HandbagAssociation (LEFASO) show that the whole country currently has 35leather businesses, 62 percent of which are small-to-medium sizedprivate companies which are financially incapable of investing inadequate waste treatment systems.
According to LEFASO SecretaryGeneral Phan Thi Thanh Xuan, leather businesses currently are capable toproduce 350 million square feet (sqft) each year, meeting 40 percent ofthe amount required to make leather products for export.
It isexpected that footwear businesses will need 700-750 million sqft ofleather by 2015 and the demand will continue to increase in the ensuingyears. Therefore, if domestic leather businesses do not invest inexpanding production, they will be able to meet a lower percentage ofthe actual demand.
Developing the leather industry is necessaryto increase the export value of Vietnamese footwear. Trade agreements,especially the Trans-Pacific Partnership Agreement (TPP), require exportgoods to meet specific requirements in terms of origin. So, Vietnameseleather and footwear businesses will be unable to make the most ofadvantages from these agreements if they fail to produce input materialsrequired for production.
Aware of the important role of theleather industry to the development of businesses which make footwearand handbags for exports, the MOIT has taken the initiative in seekingsolutions to boost domestic leather production. At a recent meeting heldto discuss measures to develop the domestic leather industry, DeputyMinister of Industry and Trade Ho Thi Kim Thoa said that the MOIT wouldaccompany leather businesses through difficulties and create favorableconditions for them to expand production.
Deputy Minister Ho ThiKim Thoa required the Light Industry Department and LEFASO toaccelerate the formation of exclusive industrial zones for leatherbusinesses. She said that leather businesses should concentrate oncreating products of high value.
She requested the Ministry ofNatural Resources and Environment and the Ministry of Science andTechnology to propose suitable environmental standards which can beapplied to leather businesses and deal with problems currently facingthem.
Exclusive industrial zones for leather businesses remain adesire which has not come true. The MOIT’s determination to untie theseknots aims to promote the sustainable development of the entire leatherand footwear sector.-VNA
