Vietnam leatherworkers, shoemakers look to EU for salvation

Second-tier exports post strong growth By Hong Van in HCMC While many key export items of the country face a gloomy future due to the world economic slowdown, some commodities with small market segments have posted strong growth rates, according to the Ministry of Industry and Trade. These include electric wire and cable, handbags, suitcases, hats and umbrellas, among others, said Pham The Dung, head of the Export Bureau under the ministry. The world electric wire and cable industry has a growth rate of around 3-4% annually but the modest number does not hurt Vietnam's export potential as the nation has just focused on a few overseas markets with high-quality electric equipment. Therefore the ministry plans to raise the commodity's export turnover to US$1.4 billion next year. Japan is now the main market for Vietnam's electric wire and cable, accounting for over 90% export value of this commodity. "Export value to Japan has increased sharply as many Japanese-invested enterprises here have shipped wire and cable back to their home nation," Dung said. Vietnam has over 100 enterprises in the industry including many huge foreign-invested corporations like Taya Vietnam, Furukawa Automotive Parts Vietnam, Sumi-Hanel and LG-Vina. However, the local Vietnam Electric Cable Corporation-Cadivi is also in a strong position. Beginning their export 10 years ago, Cadivi is now tempting the U.S. market with high-quality products like high and low voltage underground wire, aerial bundled cable, fiber cable and water-resistant electric wire. Recently, the corporation has approached Canada with many long-term contracts.…... [read more]

VietNamNet Bridge – Buyers do not need to go to Guangzhou, China, the heaven for fake products, but only need to visit a village in Hanoi to purchase handbags labeled with world famous brands as Chanel, Hermes and Gucci, for VND50,000-VND80,000 ($2.5-$4). Located 40 km to the south of Hanoi, the craft village of Thao Noi in Son Ha commune, Phu Xuyen district produces imitation leather handbags of famous brands as Chanel, Hermes, Louis Vuitton, Michael Kors, Phillip Lim, Prada, and Marc Jacobs. Along the village road are many enterprises and showrooms displaying and selling fake handbags. Mr. Sang, an employee of Chin Na Enterprise, said the village is very sensitive to customer tastes and market demand. Local producers supply the market with the latest designs by world famous brands, at dirt-cheap retail prices of VND35,000 to VND80,000/product ($1.5-$4). The wholesale prices are lower. A local producer named Trung Van said these products are mainly sold to handbag and fashion shops in Hanoi and neighboring provinces. For consumers, the prices are at least three times higher. Pointing to a Michael Kors handbag with a heart-shaped lock, Van said the wholesale price for this bag is VND60,000 ($3) but at retail stores in Hanoi, it is sold for VND180,000 ($9) to VND200,000 ($10) and even VND250,000 ($12). These fake handbags sell well due to affordable prices. According to the first enterprises producing handbags in Thao Noi Village, such as Chin Na, Ngoc Linh, and Thanh Hue, after initial difficulty in catching…... [read more]

(VOV) - The Ministry of Industry and Trade (MoIT) reports the textile and leather & footwear sectors achieved impressive growth in April buoyed up by numerous export contracts. HCM City attracts large investment in textiles TPP offers garments and textiles huge opportunities Supply chain key to textiles growth Impressive growth for textiles MoIT statistics show that garment and textile export earnings reached over US$5.9 billion by the end of April, up 20% compared to the same period last year. Le Tien Truong, Deputy General Director of the Vietnam National Textile and Garment Group (VINATEX), says the sectors' strong growth was projected at the beginning of this year due to large numbers of orders. Many businesses are currently operating at full capacity to meet orders till the end of the third quarter, even late this year. Republic of Korea, Japan and the US. The 24th International Fair on Garments and Textiles Equipment and Accessories (Saigon Tex 2014), the largest of its kind, was held in HCM City in early April, providing an excellent opportunity for local enterprises to get access to the latest technology, so as to increase localisation rate and improve value-added products. Recently, the Vietnam National Textile and Garment Group (Vinatex), Foshan Sanshui Jialida Company (China) and Luenthai Company (Hong Kong, China) worked with Nam Dinh province to establish Rang Dong textile industrial park. The goal of the project is to develop a textile supply chain from spinning, knitting, dyeing, printing and finishing. As planned, the project, covering an…... [read more]

The Devil, it seems, wears anything but Prada in the eyes of Chinese bloggers determined to expose corrupt government officials flashing luxury labels way past their pay grades. Prada is among a few premium brands reporting solid growth in the world's second largest luxury market even as a government campaign against conspicuous spending and gift-giving hurts firms with instantly recognizable brands like LVMH, Compagnie Financiere Richemont and Kering SA. The logos on Prada's deluxe leather handbags, wallets and shoes are, by and large, low-key and these days, discretion is key in China. This month, the government jailed a provincial official for 14 years for corruption after pictures of him wearing expensive watches - including what bloggers said was a Vacheron Constantin - became a hit on the Internet, earning him the nickname "Brother Watch". Richemont owns several leading luxury watch companies including Vacheron Constantin, Cartier and Piaget, and earlier this month said demand in China had weakened. "Some companies, like Richemont, had a lot of exposure to sectors that have taken a big hit in China this year, especially luxury watches," said James Roy, senior analyst at China Market Research Group in Shanghai. "Many luxury clients here are moving away from more loud or bling-focused luxury brands like Gucci or Louis Vuitton, towards things that are a bit more subtle and sophisticated without the flashy logo," he added. LVMH's Louis Vuitton and Kering-owned Gucci, which won over legions of fans with their visibly branded products, have recently moved away from…... [read more]

Local footwear firms urged to develop effective supply The domestic leather and footwear industry should work to build up its raw material supply chains to ensure sustainable future development. That was the suggestion from the Ministry of Industry and Trade in a recent statement offering growth advice. The industry needed to invest more in raw materials as it was too reliant on imported parts, the ministry said, adding this meant the sector was vulnerable to price volatilities in the world market. The ministry also encouraged footwear producers to restructure and expand retail networks, while paying more attention to advertising their trademarks in the international arena and seeking new export outlets. The country's footwear exports hit US$2.25 million over the past four months, up 9 per cent year-on-year, according to the ministry's statistics. Local experts said the industry had enjoyed favourable conditions for boosting exports as most local businesses received steady orders for the second and third quarters of this year. According to the Viet Nam Leather and Footwear Association (Lefaso), many Vietnamese producers were turning to new markets, including the US and Japan, in addition to their traditional business in the EU. The sector would aim for export turnover of $8 billion this year, a 10.4 per cent increase on last year, the ministry said, adding that sport shoes and sneakers would remain the industry's key export staples in 2013, besides leather handbags and briefcases. Masterplan much needed for energy development Viet Nam should create a master plan for the…... [read more]

The country's footwear exports hit US$2.25 million over the past four months, up 9 per cent year-on-year.—VNA/VNS Photo HA NOI (Biz Hub)— The domestic leather and footwear industry should work to build up its raw material supply chains to ensure sustainable future development. That was the suggestion from the Ministry of Industry and Trade in a recent statement offering growth advice. The industry needed to invest more in raw materials as it was too reliant on imported parts, the ministry said, adding this meant the sector was vulnerable to price volatilities in the world market. The ministry also encouraged footwear producers to restructure and expand retail networks, while paying more attention to advertising their trademarks in the international arena and seeking new export outlets. The country's footwear exports hit US$2.25 million over the past four months, up 9 per cent year-on-year, according to the ministry's statistics. Local experts said the industry had enjoyed favourable conditions for boosting exports as most local businesses received steady orders for the second and third quarters of this year. According to the Viet Nam Leather and Footwear Association (Lefaso), many Vietnamese producers were turning to new markets, including the US and Japan, in addition to their traditional business in the EU. The sector would aim for export turnover of $8 billion this year, a 10.4 per cent increase on last year, the ministry said, adding that sport shoes and sneakers would remain the industry's key export staples in 2013, besides leather handbags and briefcases. —…... [read more]

A gold, diamond-encrusted iPhone gleams in the window at a shopping mall in Hong Kong, its $25,000 price tag a symbol of the city's luxury excesses fuelled by cash-rich Chinese tourists and wealthy locals. HONG KONG, China - A gold, diamond-encrusted iPhone gleams in the window at a shopping mall in Hong Kong, its US$25,000 price tag a symbol of the city's luxury excesses fuelled by cash-rich Chinese tourists and wealthy locals. The custom-built device boasts a rose gold chassis ringed with a combined 7.28 carats in diamonds that also spell out the number "5" on its back, loudly announcing that this is indeed an Apple iPhone 5 -- albeit with a difference. Despite the gloom in the West and a slowing expansion of China's economy, free-spending Chinese consumers and wealthy Hong Kong locals craving exclusivity have proven a blessing to retailers looking to buck global woes. From gadgets decked out in jewels to made-to-order men's shoes and ladies leather handbags or Rolls Royce cars with monogrammed seats, Hong Kong continues to benefit from the influx of newly rich mainland Chinese searching for authentic goods and lower sales taxes. "They don't care about the price," said store manager Cytheia Lui, surrounded by gadgets ranging from shiny gold-plated iPad covers to multi-coloured laptops and headphones. "For them the attitude is: if you use an iPhone and I use an iPhone too, why should we have the same one?" Lui said that a mainland Chinese customer placed an HK$800,000 (US$103,000) order for…... [read more]

Pilot projects help improve rural incomes, say officials The income of residents in five rural communes in outlying HCM City have improved significantly as a result of a pilot project in the government's national new rural-area programme. The annual average revenue from one hectare has risen to VND239 million (US$11,400), up VND138 million against 2009, according to Thai Quoc Dan, deputy head of the city's Sub-department of Rural Development. Dan, who spoke at a seminar in the city last Wednesday, said the commune farmers had switched to cultivating plants and raising animals with high economic value, including orchids and ornamental fish. In addition, handicraft production and processing of clean salt has brought positive results. Labourers in these communes earn an average income of VND2.5-3 million ($120-144) a month. The five communes no longer have any families under the Government's poverty line, which is an annual average income of VND4.8 million ($230)or less per person. Agricultural workers now total 6,343, accounting for 11 per cent of the five communes' total labourers. More than 90 per cent of working-age people in the five communes now have a job, according to the city's Steering Committee for the Programme to Build New Rural Areas. The five communes are Thai My Commune in Cu Chi District, Xuan Thoi Thuong in Hoc Mon District, Tan Nhut in Binh Chanh District, Nhon Duc in Nha Be District and Ly Nhon in Can Gio District. In 2009, the city selected the five communes for the pilot project after…... [read more]

HA NOI (VNS)— The footwear industry will aim for export turnover of US$8 billion this year, an increase of 10.4 per cent over last year, according to the Ministry of Industry and Trade. Workers of Quang Nam Footwear Co prepare products for export. The footwear industry is expected to earn US$8 billion in export turnover this year. — VNA/VNS Photo Hong Ky The ministry said that sport shoes and sneakers would remain the industry's key export staples this year besides leather handbags and briefcases. To achieve this goal, the ministry has urged the footwear industry to increase the production of raw materials so that 60-65 per cent of the industry's demand can be satisfied by domestic materials. Currently, the footwear industry still relies heavily on imported parts, causing it to face difficulties as the world market remains volatile. The industry is also closely working with the garment and textile industry and other relevant industries to create an industrial complex specialising in producing footwear accessories. According to the Viet Nam Leather and Footwear Association, the industry also plans to build research and trade promotion centres to become more competitive. Despite these economic hardships, the industry's export value still surged 10.6 per cent last year to $7.2 billion. Domestic footwear exporters said that the number of orders businesses have received from traditional importers had fallen 25-30 per cent against the previous year. Some footwear makers said that they had to adjust production, cut costs, increase product quality and even accept breaking even…... [read more]

I entered the glamorous world of Ipa-Nima at 77-79 Dong Khoi Street in downtown Ho Chi Minh City knowing I would find the ideal birthday gift for my sister, who loves vibrant colors and exotic designs. The shop, one of a chain founded in 1997 by the famous designer Christina Yu, displays a hundred beautiful handbags made of all kinds of material like leather, velvet, denim, silk and cotton, all detailed with appliqué, beading, tassels, mirrors, buttons and ribbons. "I'm looking for a genuine goat leather handbag for the daytime, something like this one," a young woman named Le Thuy told the sales clerk, and pointed to a long, white bag on display. For an evening bag, Thuy picked out a feather handbag and a novelty bag in the shape of an owl. A one-time lawyer, Hong Kong born Christina Yu had big plans for Ipa-Nima from the outset, like exporting her colorful, individually patterned brand-name bags to stores like Henri Bendel and Barney's in Manhattan, and Harvey Nichols in London. HANOI17 Nha Tho Street, Hoan Kiem District34 Han Thuyen Street, Hai Ba Trung District HCMC77-79 Dong Khoi Street, District 1 71 Pasteur Street, District 1Website: www.ipa-nima.com Already Ipa-Nima stores can be found in Germany, Australia, Taiwan, Malaysia, and Guam. In Vietnam, the stores are located in Hanoi and HCMC. "A bag to a woman's ensemble is like jewelry to a face or flowers to a room; they add that touch that can turn 'conservative' into 'original' or 'sexy' into…... [read more]




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