CHN-US trade war is bringing tremendous challenges to Vietnam

According to the Vietnamese Association of Leather, Footwear and Luggage, in the first six months of this year, the total export volume of this industry reached 9.45 billion US dollars, an increase of 8.4% over the same period last year. By the end of the year, total exports are expected to reach $19.5 billion. But at present, the Sino-US trade war is bringing great challenges to Vietnam's leather and footwear industry.

Industry experts believe that the evolution of Sino-US trade war is still complex and unpredictable, which may prompt Chinese enterprises exporting leather and footwear products to the United States to invest in Vietnam and build factories. This is both an opportunity and a challenge, because accepting a large amount of foreign investment can easily lead to more fierce competition in factory buildings, labor force and higher production costs in the industry, while putting Vietnamese small and medium-sized enterprises with relatively backward science and technology in a dilemma.

Ye Chengjie, Vice President of Vietnam Leather and Footwear Luggage Association, said: "Some Vietnamese leather and footwear enterprises are easily involved in trade fraud such as forgery of origin and illegal export. Vietnam shares a common border with China, so it will be more difficult for us to manage the situation in the future. When Vietnam's exports to the United States surge, the U.S. authorities may conduct anti-dumping investigations on Vietnamese shoes and bags.

In addition to the above challenges, after the entry into force of the CPTPP, the footwear industry in Vietnam will increase three new markets, namely Mexico, Canada and Peru, to facilitate steady export growth, increase the rate of domestication and deepen its participation in the global value chain.