Tariff cuts following the enforcement of Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have aided Vietnam to enjoy increased footwear exports in the first half of year 2019.
Country’s footwear sector has posted exports worth USD 8.8 billion with a year-on-year increase of 14 percent in the first six months of 2019, according to General Statistics Office. This has put Vietnam on second spot, after China in exporting footwear to the global market with more than one billion pairs of shoes annually.
Up by 28 per cent from previous year, US became the biggest export market of Vietnam with turnover of USD 22.6 billion in the review period.
Two factors that supported Vietnam exports growth is the removal of incentives for footwear exported from China and India and the ongoing US-China trade war.
The tensions between two biggest economies have attracted foreign investments in footwear manufacturing to Vietnam. Some companies have shifted their production in the country to avoid duty slaps and is now their preferred destination to export footwear to the US.
Secretary General of LEFASO Phan Thi Thanh Xuan said, “Due to the deal, Vietnam’s footwear exports to other markets in the CPTPP are expected to increase by 10-15 per cent in 2019. Particularly for Canada, up to 78 per cent of Vietnam’s footwear exports to the market enjoy zero percent tariffs following CPTPP and may reach 500 – 550 million USD in 2019.”
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