Vietnam Loses Tariffs On EU Export Shoes

In January 1, 2009, the EU abolished the preferential tariff system for Vietnam's export shoes to the EU, the high import tariffs, and the 10% anti-dumping duty imposed by the European Union on 33 varieties of leather shoes in Vietnam, which will create enormous pressure on Vietnamese shoe manufacturers and exports.

Nguyen Thi Tong, vice chairman of Vietnam leather and Footwear Association, said that the abolition of Customs preferential system and anti-dumping duties exacerbated the difficulties brought by the global financial crisis in the shoe industry, resulting in many small and medium enterprises reducing production and reducing staff.

If we lose the EU preferential tariff system, the average exchange rate of Vietnam's exports to the EU will increase by 3.5-5.5%, leather shoes duty will increase to 8%, and textile shoes will increase by 17%.

In addition, it may lead foreign enterprises to pfer their production to other countries.

EU is the largest importer of Vietnamese shoes, accounting for 55% of Vietnam's total exports. The EU's anti-dumping duty has dropped from 66% in 2004 to 55%.

Vietnam expects total exports to reach $4 billion 500 million in 2008, an increase of 10% over the same period last year.

To overcome the current difficulties, Vietnam's footwear industry is strives to open up the domestic market, seek emerging markets, and strive to reduce production costs.

Yang Jing: editor in charge