Reliance on Chinese leather hurts Vietnamese footwear firms
09/05/2011
Reports from the neighbouring country have said that Vietnam’s shoe production companies rely on Chinese suppliers for as much as 90% of the materials they use. The Chinese government has said the yuan has risen in value against the US dollar by 1.8% so far this year and by nearly 5% in the last 12 months. A rising yuan is having a severe effect on Vietnamese production costs.
Truong Thi Thuy Lien, director of the Lien Phat Footwear Company in Binh Duong Province, recently told Vietnamese media that materials imported from China including leather increased in price by 40% in April compared to the same month in 2010.
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