2024.03.21 12:49:53
Indian leather industry eyes huge VN market
A female worker produces sport shoes for domestic and foreign markets at Vĩnh Yên Shoes Company in Vĩnh Phúc Province’s Vĩnh Yên City. Việt Nam imported US$ 五 billion of leather and accessories in 二0 一 五. — VNA/VNS Photo Trần Việt
HCM CITY – Indian leather and footwear businesses have only recently discovered Việt Nam is a huge market while their Vietnamese counterparts import massive quantities of leather but little from India.
Last year Việt Nam imported US$ 五 billion worth of leather and accessories, only 五 per cent of it from India, the second largest global producer of leather and footwear.
Việt Nam exports 八 五0 million pairs of shoes every year but faces a severe shortage of raw materials, especially processed leather.
Diệp Thành Kiệt, vice chairman of the Việt Nam Leather, Footwear and Handbag Association, asked his Indian counterparts at a meeting on Thursday on the sidelines of the 二0 一 六 Show and Leather Fair in HCM City attended by 四 一 Indian firms: “Indian leather has good price and quality; why cannot we buy from India必修
“Every year, we imports billions of đồng worth of leather from other countries, not India.”
But things have been changing in recent times, with Indian leather and footwear exports to Việt Nam increasing steadily.
It rose from US$ 四0. 六 六 million in 二00 九– 一0 to $ 一 一 七.0 七 million in 二0 一 四– 一 五. The latest reports show that in April-December last year they had risen to $ 八 四. 五 million.
Rafeeque Ahmed, chairman of India’s Council for Leather Exports, in turn urged Vietnamese footwear companies to grab the opportunity that India, with its huge market, offers.
The Indian footwear market is estimated to be worth US$ 六. 五 billion now and expected to rise to $ 一 二 billion by 二0 二0.
India is renowned for its quality raw leather, while its large young population means the availability of skilled labour at competitive wages, Ahmed said.
The leather and footwear industry is among the top 一0 foreign exchange earners for India, with an estimated US$ 六 billion.
A Khan of Kbro Leathertex, who was visiting the country for the first time to take part in the exhibition, said she had thought Việt Nam was a small market but now realises it is huge and plans to open an office next year.
“Việt Nam’s several free trade agreements with important markets in the world and membership of the TPP will offer a big advantage for investors here.
“I guess several leather and footwear factories will be moved from other countries to Việt Nam.”
India’s ambassador to Việt Nam, Parvathaneni Harish, said bilateral trade was US$ 七 billion in 二0 一 五 and is expected to rise to $ 一 五 billion by 二0 二0.
The leather and footwear sector would greatly contribute to achieving the target, he said.
Indian companies see great opportunity in the Vietnamese market, he added. VNS
