| With a big domestic market, the world’s 13th largest population, an emerging economy in the successful process of socio-economy reforms, Viet Nam is a “target” for manufacturer, importer, exporter, and investor. VIETNAM ECONOMIC AND FDI MARKET In the first 4 months of 2008, the whole country attracted over USD7.5 billion from foreign investment, accomplished a half of target and draw USD15 billion as planning. This is a good signal of foreign investment attraction in this year. According to Ministry of Planning and Investment, in the first 4 months of 2008 whole country attracted USD7.598 billion from new investment and gained 41% compared with the same period of 2007. Among these are total 210 projects which had certification with total investment capital are USD7.226 billion, as 35.3% projects and increased 52.9% investment in comparison with the same period time last year. In addition, 64 projects raise investment capital with total up to USD371.4 million equal 50.4% of investment raising projects and 57.3% of total added capital as compared with the same period time last year. Ministry of Planning and Investment reports investment capital in the first 4 months of 2008 highly increased compared with the same period of 2007 because many big projects were certificated. | 2009 Targets | | Total Population | 87.3 million | | GDP | 7% - 7.5% | | Total Exports | US$74.6 billion | | Total Imports | US$96.6 billion | | Total Budget Revenue | US$22.2 billion | | Total Budget Spending | US$27 billion | (Source: MPI’s first draft, 2009 Socio-Economic Plan, July 2008) VIETNAM LEATHER AND FOOTWEAR MARKET The Export Turnover of all kinds of footwear in 2007 reached USD3.99 billion increased 10% compared with 2006. Export turnover of suitcase and bag reached above USD600 millions. Imports of Leather and Raw-Hide reached USD993 millions with the quantity of 553 million sqft. Production output and Export turnover of Vietnam leather and footwear in 2007 was keeping increased, in which Sport shoes reached USD2.7 billion, Canvas shoes reached USD205 million, Other Shoes reached USD284 million, while Ladies Shoes recorded an impressive increase compared with 2007 reaching USD802 million. In 2007, export to EU market reached USD2.1 billion increased about 9% comparing with the same period of 2006. Exports to USA, Canada, and Mexico reached USD1.1 billion with an increase of 10% compared with 2006 and occupied nearly 28% of total export turnover. In 2008, the whole industry is estimated to reach USD4.5 billion of export turnover with the increase of 15% comparing with 2007. Export turnover of suitcase and bag is estimated to reach USD800 millions. 2007 RESULT AND 2008 FORECAST Export Turnover: USD3.99 billion Production Output: - All kinds of footwear: 615 million pairs - Finished leather: 120 million sq.ft - Suitcase and bag: 70 million pieces Forecast of 2008 Export: USD4.5 billion (Source: Lefaso website) At the end of 2006, more than 800 complete production lines have been equipped for various types of finished shoes worth a total capacity of 715 millions pairs per year. More than 400 enterprises over the country are engaged in tanning, shoe and shoe materials production and exportation with over 1 million employees in the industry. European Union countries is the major export markets of Vietnamese footwear which accounted for nearly 60% out of total export turnover of the industry. The second largest market is USA keeping strong growth after BAT since 2001. Vietnam is official member of WTO in November 2006 that important event create good opportunities for the development of the industry and expanding more market for footwear export. In order to keep going on stable development of footwear industry, Vietnam government encourages foreign investors to invest in Vietnam especially on the projects such as supplying and production of footwear component and accessories in Vietnam, setting up center for leather and footwear services and other projects on leather production, waste treatment system of tannery factories, etc. | | The export turnover of all kinds of Vietnam footwear in the first 8 months of 2008 The export turnover of all kinds of footwear in august reached USD 391,513,092, total export turnover in the first 8 months of 2008 achieved USD 3, 199,189,560, gained 16.9% compared with the same period time last year. | Country | August 2008 (USD) | In the first 8 months of
2008 (USD) | | Argentina | 1,987,531 | 13,587,236 | | Irish | 1,074,614 | 4,735,483 | | India | 558,779 | 3,707,230 | | UK | 51,899,645 | 384,282,477 | | Austria | 3,846,181 | 38,587,554 | | Arab | 387,198 | 1,770,661 | | Poland | 997,444 | 5,290,446 | | Belgium | 19,161,859 | 207,817,417 | | Portugal | 384,896 | 5,247,963 | | Brazil | 4,509,425 | 28,335,938 | | UAE | 1,326,023 | 12,974,171 | | Cambodia | 23,471 | 363,863 | | Canada | 10,697,420 | 63,119,897 | | Taiwan | 3,963,416 | 25,774,827 | | Denmark | 1,053,541 | 13,356,145 | | Germany | 24,252,110 | 267,405,903 | | Holand | 24,658,553 | 241,439,224 | | Korea | 6,184,380 | 41,518,628 | | Hong Kong | 5,412,676 | 32,298,410 | | Hungary | 169,610 | 1,365,916 | | Egypt | 2,076,533 | 14,717,053 | | Indonesia | 434,027 | 4,131,493 | | Italy | 14,460,288 | 157,019,558 | | Lao | | 717,890 | | Litva | 44,102 | 811,177 | | Malaysia | 1,768,096 | 12,790,446 | | America | 88,479,013 | 665,042,522 | | Norway | 806,472 | 7,564,529 | | South Africa | 4,167,694 | 22,463,782 | | Newzealand | 532,218 | 5,040,823 | | Russia | 1,202,684 | 26,842,598 | | Japan | 11,386,717 | 88,488,005 | | Australia | 2,963,584 | 25,888,098 | | Finland | 900,683 | 3,926,185 | | France | 11,952,239 | 135,306,205 | | Philippines | 865,431 | 4,358,170 | | Rumani | 145,899 | 660,340 | | Czech Republic | 628,585 | 5,270,131 | | Singapore | 1,199,024 | 6,721,111 | | Sip Republic | 111,901 | 675,796 | | Slovakia | 3,129,576 | 18,388,374 | | Slovenia | 102,296 | 2,499,031 | | Spain | 22,524,817 | 135,842,502 | | Thailand | 896,964 | 4,857,466 | | Turkey | 759,951 | 12,503,333 | | Sweden | 5,647,508 | 43,599,325 | | Swiss | 1,677,588 | 13,960,596 | | China | 11,471,901 | 66,942,756 | | Ukraine | 190,724 | 3,099,605 | | Total | 391,513,092 | 3,119,189,560 | | (Source: Customs head department) Lefaso website | The export turnover of handbag, purse, wallet, suitcase and umbrella in the first 8 months of 2008 Export turnover of handbag, purse, wallet, suitcase and umbrella in August of 2008 reached USD 66,049,309, total export turnover in the first 8 months of 2008 achieved USD 539,610,154, gained 29% in comparision with the same period time last year. | Country | August 2008 (USD) | In the first 8 months
of 2008 (USD) | | Argentina | 218,953 | 1,623,488 | | Irish | 100,999 | 816,273 | | India | 77,838 | 960,738 | | UK | 1,480,335 | 13,776,549 | | Áustria | 301,067 | 1,139,638 | | Arab | | 370,577 | | Poland | 525,541 | 3,246,432 | | Portugal | 3,171,258 | 48,602,955 | | Belgium | 85,221 | 650,697 | | Brazil | 455,604 | 3,390,310 | | UAE | 36,351 | 1,122,213 | | Cambodia | 170,998 | 899,359 | | Canada | 1,863,108 | 17,500,802 | | Taiwan | 2,947,465 | 13,156,313 | | Denmark | 558,865 | 2,424,543 | | Germany | 6,488,198 | 47,623,654 | | Holand | 2,116,907 | 14,184,330 | | Korea | 3,434,910 | 17,468,435 | | America | 17,444,216 | 149,051,959 | | Hong Kong | 576,142 | 4,300,679 | | Hungary | 127,933 | 908,340 | | Egypt | 408,416 | 1,611,427 | | Indonesia | 70,467 | 386,449 | | Italy | 1,421,192 | 12,081,905 | | Malaysia | 476,987 | 3,302,122 | | Norway | 433,425 | 2,322,255 | | South Africa | 169,333 | 1,188,776 | | Newzealand | 183,876 | 1,346,272 | | Russia | 647,953 | 4,539,851 | | Japan | 5,893,758 | 49,980,103 | | Australia | 1,238,039 | 6,948,713 | | Finland | 50,077 | 517,575 | | France | 4,319,066 | 37,520,590 | | Philippines | 209,738 | 921,427 | | Czech Republic | 241,929 | 2,824,151 | | Singapore | 322,522 | 2,592,901 | | Slovakia | 66,660 | 200,839 | | Slovenia | 69,335 | 236,363 | | Spain | 1,592,139 | 16,780,434 | | Thailand | 406,831 | 4,894,645 | | Turkey | 83,290 | 1,527,471 | | Sweden | 1,096,012 | 8,570,915 | | Swiss | 294,511 | 2,539,705 | | China | 836,154 | 8,635,767 | | Ukraine | | 1,278,559 | | Total | 66,049,309 | 539,610,154 | | (Source: Customs head department) Lefaso website | | |
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