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Vietnam sees increasing foreign investment in footwear sectorWednesday, November 19, 2014 > 09:18:42
Foreign investment in Vietnam's footwear sector increased from 500 million U.S. dollars to around 2 billion U.S. dollars over the past three years as a growing number of foreign companies launched factories in the country.
Vietnam currently ranks the fifth worldwide among footwear producers and the second among the world's major footwear exporters to the European Union, the United States and Japan after China.
Matt Priest, representative of the Footwear Distributors and Retailers of America, said that many U.S. companies are seeking attractive destinations to place their factories, including Vietnam.
The attraction of the Vietnamese market can be seen as a wave of the world's leading footwear producers such as Nike, Adidas and Puma, among others, have set up manufacturing plants in Vietnam.
Oliver Ng of Ever Rite International said his group had the first factory in Vietnam's southern Ho Chi Minh City in 1993. Now, the company has 52 footwear production lines in the country and the figure is expected to rise.
Ng said the reason for choosing Vietnam as investment destination includes a young population, stable foreign exchange rates, low minimum wage, and labor productivity compatible to those of other countries.
In the first ten months of 2014, Vietnam earned 10.2 billion U. S. dollars from the export footwear, up 18 percent year-on-year. The figure for the whole year is predicted to be 12 billion U.S. dollars, accounting for 10 percent of the country's total export revenue.
Among those, foreign invested sector is expected to contribute some 70 percent, according to the Vietnam Industry and Trade Information Center under the Ministry of Industry and Trade.