According to the head of the Slovakian leather and shoe association, Stafan Sulu, shoe production in the country should go up from its present level of 10 million pairs to 15 million in the next few years. He expects domestic production to rise and enlarge its share of domestic sales, while the illegal import of shoes in large numbers should diminish.

However, increasing domestic production will be determined by internal reforms, which are especially needed in the country’s tax system and company law. An increased inflow of foreign investment and technology will be needed.

At present, domestic production is being hampered by the massive and partly illegal import of shoes from China and south-eastern Asia, mainly Vietnam. These imports grew in the first half of 2002 by a record 95% when compared with the same period the previous year (from 5.7 million to 11.1 million).

However, despite these figures and general decrease in production of 4.5 million pairs in first half 2002, the Slovakian shoe and leather industry is doing quite well. The industry has increased profitability by more than 40% against the previous year. The industry is also employing more people than 2001 (16,530) while wages rose by 5%.

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