Vietnamese leather corporation outlines plans for future

22/10/2001
Vietnam’s Leather and Footwear Corporation (Leprodexim) has announced a programme of reform aimed at grabbing a larger share of the international market after its slowest rate of export growth in a decade.

A key aspect of the programme is its emphasis on cost reduction. In an effort to enhance the price-competitiveness of its products, the company says it will reduce its reliance on imported raw materials, accessories and equipment. It also intends to bring a higher proportion of its manufacturing and marketing activities in-house, while realising ‘substantive’ efficiency gains through investment in new production technology.

There will be also be renewed emphasis on marketing, with each factory being asked to single out product lines for promotions. In addition, more new products will be designed with the preferences of national export markets in mind.

In the first nine months of 2001, Leprodexim earned $1.1 billion in export revenues. Though this represented a 6.3% increase year on year, it nevertheless marked the corporation's lowest rate of growth for ten years. With the implementation of the new measures, the company says it is hoping to lift export earnings for next year by an ambitious 75.5%.