09:23 | 28/11/2015 Trade
Exports of handbags, wallets, suitcases, hats and umbrellas have so far been steadily optimistic, helping the industry meet the export target of 2.8 billion USD this year.
Workers of Simone Vietnam TG Limited Company in Tan Huong Industrial Zone, Tien Giang Province check the final products before export (Photo: VNA)
The Vietnam Leather, Footwear and Handbag Association (Lefaso) noted that the target was feasible, based on export value to date, and signed export contracts that last until year-end.
According to Lefaso Vice Chairman Diep Thanh Kiet, the industry earned 2.5 billion USD from exports by mid November, up 14.3 percent against the same period last year. Exports of these items have maintained a high increasing rate this year, with October alone seeing a turnover of 230 million USD.
The US led Vietnam's major export markets for handbags, wallets, suitcases, hats and umbrellas in January-October, with the purchase of 1 billion USD worth of goods, a year-on-year increase of 15.8 percent.
The EU and Japan followed, with export values of 616 million USD and 253 million USD, up 12.8 percent and 9.8 percent, respectively.
The export acceleration of the industry started in 2013, when it contributed more than 1.8 billion USD to the country's export value. Last year, the industry fetched 2.5 billion USD, up 31.21 percent against the previous year. Exports of these products have remained high this year as several manufacturing factories moved from China and Indonesia to Vietnam to gain access to lower tariffs and a relatively better-skilled workforce.
To benefit from preferential tariffs under various free trade agreements and the Trans Pacific Partnership Agreement, many foreign companies in ancillary industries have made investments in Vietnam.
However, local firms will have to strive to increase investment, expand production scales and improve the quality of their products to compete with foreign direct investment (FDI) firms.
Most of the country's exports of handbags, wallets, suitcases, hats and umbrellas currently belong to FDI firms, of which firms from the Republic of Korea account for the largest number.
Vietnamese firms, meanwhile, mainly perform outsourced tasks for foreign firms./.