Vietnam’s leather sector could be stymied by supply chain links

15/01/2021
Leather and footwear companies in Vietnam must improve design capabilities and supply chain links if they are to take advantage of favourable new trade deals, according to a USAID consultant at a conference in Ho Chi Minh City.

Local media reported that Phan Th Thanh Xuân told delegates there is a demand for longer lasting products, which leather can serve.

He added that companies need more staff who have a solid understanding of overseas markets and can deal directly with brands, and that they need to focus on fashion, according to VietnamNet News.

The sector’s turnover was $19.5 billion in 2020, about 11% lower than 2019 due to the pandemic.

Lefaso, Vietnam’s leather and footwear association, said it will seek extra investment to use more domestic materials in 2021.

The conference was called ‘Policy, regulatory and administrative reform to boost development of Vietnam’s leather, footwear and handbag sectors’.