Vietnam to upgrade leather and footwear manufacturing
The Vietnamese leather and footwear industries are to benefit from some $466 million in investment over the next 10 years, according to the government. The money will be used to modernise production units, organise mass cattle breeding and slaughter programs to ensure a constant supply of leather, and forge links with textile, plastic and machinery makers to produce materials for shoes.
There are also plans to invest in the development of trade marks and branding for Vietnamese shoes on the world market. It is hoped that 640 million pairs of shoes and sandals with an export value of $4.7 billion will be produced in 2002.
Vietnam’s industry minister has called on his government to cut the rate of value added tax on leather and footwear products to less than 5%. The minister also wants the government to provide state-owned footwear enterprises with 50% of their working capital and obtain loans for the remaining 50%.
