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Vietnam ranks fourth on the list of the world’s top 10 shoe exporters,
with plans to export $6.2 billion worth of products in 2010 alone. Yet,
the domestic shoe market is dominated by foreign-made products,
especially those from China. At a shop that distributes Vietnamese
Biti’s brand products in HCM City, there are more than 150 models of
footwear for children. A hundred are Chinese.
Chinese products flood shops
The Vietnamese salesperson here advised customers to buy Chinese goods.
“Chinese products are diversified in design. Vietnam-made products are
durable, but you do not need durable products, because children grow up
every day. The shoes that fit your kids today may be outgrown tomorrow,”
she reasoned.
At other Biti’s sales agents in HCM City, China-made products were also
seen on display. Surprisingly, they are sales agents for a Vietnamese
brand, but they mostly sell products from China.
At Giay Viet, Dong Hai, Hong Anh and Pasteur shops, which are well known
among Saigonese, there are also a lot of Chinese goods targeting a wide
range of customers, from children to men and women, with different price
levels.
At supermarkets like Co-op Mart and Maximark, visitors can browse
through many shoes on display, but they are all from China.
Staff like selling Chinese goods
When Ly, the owner of the sole distributor of Vietnamese Asia brand
footwear, was asked why she sells products with different brands, she
explained that retailers need to sell hundreds to thousands of models,
while Vietnamese companies can only provide products with a limited
number of models.
Ly added that all retail shops sell Chinese shoes, because these
products can bring profits 2-3 times higher than those of Vietnam.
“While we must make prompt payment to Vietnamese producers, we can defer
payment for Chinese products,” she noted.
Tran Huu Thanh, the owner of Long Thanh leather footwear workshop,
agreed, revealing that when he sells his company’s products, he can make
a profit of 5-8 percent. When selling Chinese products, however, he can
make 25-30 percent.
Ngoc Nga, a shoe shop owner at An Dong Shopping Mall, remarked:
“Domestically-made products are durable, but there are only several
models. The suppliers of domestic products always require deposits,
while no deposit is required for Chinese products. You just need to
place orders and you will get delivery in five days.”
According to Nga, most Chinese products have been imported across the
border. “If you want to sell Chinese goods, you just need to contact
wholesalers at Dong Xuan Market or in Lang Son province,” she observed.
“Trucks will then carry the goods to you.”
Where are Vietnam’s shoes?
According to the Vietnam Association of Leather and Footwear Association
Lefaso, 90 percent of products from big footwear firms are reserved for
export. Foreign-invested enterprises (235) make up 70 percent of the
total export revenue, while Vietnamese products make up 30 percent.
Vietnam now has 1000 enterprises operating in the footwear industry, but
70 percent are outsourcing for foreign importers.
In fact, big domestic enterprises are not really interested in selling
products on the domestic market. Only a small volume of products with
Thuy Khue, An Lac and Thuong Dinh brands are available.
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