TPP could challenge Vietnam's footwear industry - leatherbiz: Leading Leatherbiz

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TPP could challenge Vietnam's footwear industry

17/10/2013
The general secretary of Vietnam’s Leather and Footwear Association (LEFASO) has said the Trans- Pacific Strategic Economic Partnership (TPP) could harm Vietnamese footwear makers because they will be required to import raw material from TPP members if they want to enjoy preferential tariff rates, or their domestically-produced materials must account for at least 40% of the total raw materials.

Up to 90% of raw materials are currently imported.

Vietnamese manufacturers will find hard to compete with foreign rivals in their home market, said the Vietnamese Ministry of Industry and Trade, adding that if Japan, the US, Mexico, Brazil and New Zealand bring their products to Vietnam, Vietnamese producers would disadvantaged.

However, LEFASO estimates the TPP could generate 1 million new jobs for the industry, and increase exports to the US, which currently accounts for 47% of the sector's total export turnover.

The association recommended the industry alter its sub-contract production mode and increase the ratio of domestically-made products to benefit from the TPP.




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