Leather And Footwear Have The Opportunity To Expand The Market After The Effective Implementation Of TPP.

According to Taiwan's Central News Agency reported on December 7th, Vietnam

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The same will become the largest beneficiary of exports to the United States after the entry into force of TPP. The textile industry Service Association of Taiwan said that the Vietnamese leather and footwear industry is expected to grow at an annual rate of 15% to 22%.

According to statistics, the total exports of leather and footwear in Vietnam in the first 10 months of 2015 amounted to US $10 billion 500 million, an increase of nearly 20% compared with 2014 figures, of which the amount of exports to the United States amounted to US $3 billion 400 million, an increase of 27%.

The United States and the European Union have become the largest export market for leather and footwear in Vietnam. As with the textile and garment industry, leather and footwear are considered to have a huge opportunity to expand export markets after the effective implementation of TPP.

Data show that after the entry into force of TPP, the tariff will be reduced to zero, which will help Vietnam's leather and footwear industries expand its export market, and the industry will grow rapidly.

At present, the average import tax rate of the United States for such products is 17% to 18%, and Vietnam's footwear products will have more competitive advantages.

It is estimated that the annual growth rate of leather and footwear in Vietnam is about 15% to 22%.

However, the biggest problem for leather and footwear in Vietnam is raw material supply.

According to reports, Vietnam imported leather and footwear raw materials in October, the amount of imports amounted to 4 billion 300 million U.S. dollars, but the leather and footwear industry's self-control rate is only 55%; at present, foreign-funded enterprises have localization raw material supply chain, Vietnam local manufacturers although not foreign capital enterprises, but unfortunately raw ingredients supply is still dependent on China, but China is not a TPP signatory country, so the more manufacturers are difficult to enjoy zero tariff preferences.

According to the data, there are 800 leather and footwear manufacturers in Vietnam. Among them, foreign enterprises only have 1/4 (about 200). The export volume of these 200 foreign-funded enterprises accounts for 2/3 of Korean leather products such as leather, footwear and handbags and so on. The foreign enterprises such as South Korea's "Taekwang" and other foreign enterprises are expected to enjoy the most tariff preferences with the advantage of localizing the original ingredients.