Vietnam shoe makers want half of domestic market

Vietnam shoe makers want half of domestic market

Vietnamese footwear companies said they plan to increase their local market share to 50 percent this year, up from 30 percent currently.

According to the Hanoi-based Leather and Shoe Research Institute, 130 million pairs of shoes are sold in the country every year, but foreign products are account for 70 percent of the total figure. Diep Thanh Kiet, deputy chairman of the Vietnam Leather and Footwear Association, said local footwear companies would take various measures to increase their market share in 2010, including building brand names and setting up new distribution channels. There are around 500 producers in the industry but around 70 percent of them only do contract work for foreign companies such as Nike, Adidas and Converse. It’s necessary for local companies to start building their own brands, Kiet said. To achieve the goal, large retail outlets should be opened to distribute different companies’ products, Kiet said. “When there are such shoe centers, consumers will know exactly where they should go to buy Vietnamese footwear.” The industry targets exports of US$5.3 billion this year, up 30 percent from 2009. Footwear exports dropped 15.8 percent last year to $4 billion. EU was the largest market for Vietnamese footwear as it accounted for nearly half of the total exports, followed by the US and Japan. The Leather and Shoe Research Institute said Vietnam would have to face tough competition from China, India, Indonesia and Thailand this year. Source: TBKTSG