Efforts to overcome pandemic obstacles
![]() |
Enterprises need to resume operations as soon as the Covid-19 pandemic is brought under control |
Maintaining growth
The export value of Vietnam’s leather and footwear sector reached US$14.2 billion in the first seven months of 2021, an increase of 25.3 percent compared to a year ago. According to the Vietnam Leather, Footwear and Handbag Association, Vietnam’s leather and footwear exports have benefitted from the tariff reduction commitments under the EU-Vietnam Free Trade Agreement (EVFTA), as a result of which EU orders from footwear producing countries in South Asia and Southeast Asia (India, Bangladesh, Indonesia, the Philippines, Cambodia and Myanmar) have been shifting to Vietnam. Domestic enterprises have already signed orders until the end of the year and with its growth momentum, Vietnam’s leather and footwear exports are expected to reach US$23 billion this year, a year-on-year increase of 15-16 percent.
However, the resurgence of Covid-19 has hit Vietnam’s southern provinces, especially Binh Duong and Kien Giang, where many large leather and footwear enterprises are located. As a result, leather and footwear enterprises are short of workers and cannot recruit more workers due to social distancing and travel restrictions. In addition, there is a serious shortage of containers for exports, while costs of logistics and international shipping and of imported raw materials remain high.
To overcome these difficulties, the association recommended that enterprises optimize production costs, trim operating costs, and make good use of free trade agreements, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EVFTA. They must also pay special attention to Covid-19 prevention measures to ensure safe production.
|
Facilitating production and business
Enterprises in Ho Chi Minh City and other southern provinces have spent billions of Vietnamese dong to implement the “3 on-site” model - working, eating and sleeping at the worksite. However, the model has increased costs significantly because employers need to pay for worker accommodations and meals.
Phan Thi Thanh Xuan, deputy chair of the Vietnam Leather, Footwear and Handbag Association, said leather and footwear is a labor-intensive industry and therefore the “3 on-site” model is not appropriate. She advised applying a “2 on-site” model (eating and working) coupled with rapid testing.
Under that model, workers would be allowed to go home as long as they are committed to staying either at their house or at work. Enterprises will be responsible for confirming workers’ route and location, while increasing the frequency of rapid testing to ensure new Covid-19 cases are treated quickly. Local authorities need to join forces in ensuring that workers do not leave their homes and provide specific instructions on the expected roadmap to resume production.
Xuan added that state management agencies should provide guidelines on responses to the detection of new Covid-19 cases so that manufacturing can continue. Worker vaccination would also help enterprises resume production but most are still waiting.
The Vietnam Industry Agency under the Ministry of Industry and Trade proposed a number of policies to support enterprises. Accordingly, the State Bank of Vietnam should provide credit institutions with guidelines to increase credit limits, which are no longer sufficient given the increased costs of imported raw materials.
The Vietnam Industry Agency suggested state management agencies and localities speed up the simplification of administrative procedures for the circulation and transportation of goods. |
See also

Vietnam a potential market for shoppertainment: report
18:59 | 31/03/2023 Economy

Viet Nam named among Agility’s top 10 emerging markets logistics
18:05 | 27/03/2023 Economy

Viet Nam’s fintech reaches new heights
15:52 | 24/03/2023 Economy

IFC assists Vietnamese SMEs in expanding access to finance
22:55 | 21/03/2023 Economy

Norway supports Viet Nam to produce climate-smart rice
18:20 | 16/03/2023 Vietnam and other regions

China's reopening good news for Vietnamese exporters
06:00 | 13/03/2023 Foreign trade
See more news

Ministry betters business environment
13:00 | 11/03/2023 Economy

Favourable mechanisms needed to fuel domestic supporting industries
09:08 | 10/03/2023 Support industries

Apple develops production facilities in Viet Nam: Bloomberg
16:46 | 06/03/2023 FDI

Double rise in Viet Nam’s registered FDI in two months
06:03 | 03/03/2023 FDI

Q1 economic growth drivers
06:00 | 28/02/2023 Economy

Viet Nam vows to enhance negotiations on UK’s joining CPTPP
14:53 | 27/02/2023 Foreign trade

Vietnam’s logistics industry looks bright despite headwinds
11:28 | 24/02/2023 Economy

Turkey natural stone trade mission to Vietnam
15:55 | 21/02/2023 Economy

Nationwide production resumes after Tet holiday
13:00 | 21/02/2023 Economy

VN-Index to struggle at 1,060 points due to weak demand force
07:00 | 19/02/2023 Economy

Central bank to cut refinance rate in next quarter: UOB
06:12 | 02/04/2023 Finance-Banking

Intellectuals form important force for social development: Party leader
06:00 | 02/04/2023 Science - Technology

Thai Nguyen wants to be everyone’s cup of tea
06:00 | 02/04/2023 Province

Investment surges in Bac Ninh Province
13:00 | 01/04/2023 FDI

Vietnam wins 17 prizes at International Robothon 2023
06:00 | 01/04/2023 Science - Technology
Multimedia

Hà Nội seeks support from World Heritage Centre in restoration of Kính Thiên Palace
06:00 | 01/04/2023 Culture

National Tourism Year 2023 kicks off in Bình Thuận
06:00 | 01/04/2023 Tourism

Oscar dream
09:05 | 28/03/2023 Video

Vietnam remains world’s second-largest coffee exporter
08:55 | 28/03/2023 Infographic

Ha Long Bay, Cu Chi Tunnels among ten adventurous tourism places in Southeast Asia
07:00 | 25/03/2023 Infographic

Vietnam objects to Taiwan’s live-fire drills in Ba Binh
19:10 | 31/03/2023 Policy

E-visa stay period may be extended to 90 days
18:09 | 27/03/2023 Policy

New legal documents in first half of March 2023
06:00 | 23/03/2023 Policy

Animal feed industry asks for import tax reduction on raw materials
09:55 | 20/03/2023 Policy

HCM City to host international paper, coatings, rubber, and plastic expos
09:29 | 29/03/2023 Industry

Bac Kan produce takes off
10:00 | 26/03/2023 Industry promotion

Bac Giang develops rural industrial exports
07:00 | 25/03/2023 Industry promotion

Ocean dialogue dicusses offshore renewable energy potential
09:53 | 24/03/2023 Energy

Investment surges in Bac Ninh Province
13:00 | 01/04/2023 FDI

Vietnam's retail market proves attractive for foreign investors
09:21 | 29/03/2023 FDI

Asian investors increasingly keen on Vietnam
13:00 | 26/03/2023 FDI

India introduces pharmaceutical industry' opportunities to potential Vietnamese investors
19:54 | 23/03/2023 Vietnam and other regions

Central bank to cut refinance rate in next quarter: UOB
06:12 | 02/04/2023 Finance-Banking

Decree 08, a magic wand for corporate bonds?
06:00 | 30/03/2023 Finance-Banking

Foreign investors expand consumer finance business in Vietnam
09:08 | 29/03/2023 Finance-Banking

Stock market violations to face stricter sanctions
07:10 | 26/03/2023 Stock Market

COP28 President-Designate to speak at Berlin Energy Transition Dialogue Conference
16:21 | 29/03/2023 Environment

Turning coffee grounds into energy
13:00 | 27/03/2023 Environment

Vietnam saves 298,000 kWh during Earth Hour 2023
10:48 | 27/03/2023 Environment

The value of wood scraps for business
13:00 | 25/03/2023 Environment

Intellectuals form important force for social development: Party leader
06:00 | 02/04/2023 Science - Technology

Vietnam wins 17 prizes at International Robothon 2023
06:00 | 01/04/2023 Science - Technology

Vietnam, US cultivate sci-tech, innovation cooperation
06:00 | 30/03/2023 Science - Technology

A321neo: Breakthrough technology saves fuel consumption up to 20%
15:37 | 29/03/2023 Science - Technology

Thai Nguyen wants to be everyone’s cup of tea
06:00 | 02/04/2023 Province

Scholarship opportunity at New Zealand Education Fairs 2023
15:42 | 29/03/2023 Society

Coastal communities to fight illegal fishing with own surveillance forces
07:00 | 29/03/2023 Society

Enhancing Hanoi-Singapore business connections
06:00 | 28/03/2023 Metropolis

Viettel’s Cambodia affiliate signs strategic cooperation agreement with local group
09:02 | 30/03/2023 Vietnamese Brands

Hundreds of high-quality goods honored
06:00 | 27/03/2023 Vietnamese Brands

Vietnam adopts high integration standards
06:00 | 25/03/2023 Companies

Bac Giang promotes consumption of OCOP products associated with tourism
10:02 | 24/03/2023 Vietnamese Brands

Hà Nội seeks support from World Heritage Centre in restoration of Kính Thiên Palace
06:00 | 01/04/2023 Culture

Reel in the flavours of Việt Nam with braised pickled carp
06:00 | 29/03/2023 Lifestyle

Concert dedicated to Trịnh Công Sơn to take place at Hà Nội Opera House
06:00 | 27/03/2023 Lifestyle

Let’s go fly a kite
06:00 | 26/03/2023 Lifestyle

Vietnam welcomes back Chinese tourists
06:00 | 01/04/2023 Tourism

National Tourism Year 2023 kicks off in Bình Thuận
06:00 | 01/04/2023 Tourism

Exploring Việt Nam ’s fourth highest mountain peak, Bạch Mộc Lương Tử
06:00 | 29/03/2023 Tourism

Ministry proposes extending visa-free stay to 30 days, e-visa to 90 days
06:00 | 27/03/2023 Tourism