The European Union (EU) has agreed to grant EUR311,000 to a project to enhance the technical competitiveness of Vietnamese small and medium enterprises (SMEs) in the footwear and leather sector. The project, specifically concentrating on raising the capacity of SMEs so that they can comply with the technical requirements of international markets, will start in July. The Vietnam Leather and Footwear Association (Lefaso) and University of Northampton of the UK will carry out the project. More than 70% of footwear exports from Vietnam are by foreign-invested enterprises (FIEs), which means that the lion’s share of the profits are going to these firms.
In the first five months, Vietnam’s footwear export is estimated to rise 18% from a year ago to $3.76 billion, the government-run General Statistics Office said.
The EU and the U.S. remained Vietnam’s top importers of footwear between January and April.
Vietnam’s footwear exports to the EU are predicted to surge this year, thanks to the bloc’s new Generalized System of Preferences (GSP), effective starting Jan 1, 2014, said Vietnam Leather, Footwear and Handbag Association (Lefaso). (Thoi Bao Kinh Doanh – Business Times Jun 16 p5, vov.vn Jun 14)
