Shoes and Leather Association

SHOES AND LEATHER ASSOCIATION OF HO CHI MINH CITY, VIETNAM

FLOOR 6, ROOM 604, 180-182 LY CHINH THANG STREET, WARD 9, DISTRICT 3, HO CHI MINH CITY Tel: 84.8 62905045 ; FAX: 84.8 62905023

Chairman: Mr. Dao Duy Hung Contact person: Ms. Kieu Thi Tam Anh, Office Manager EMAIL: [email protected] WEBSITE: www.org.vn

The Shoes and Leather Association of Ho Chi Minh City (SLA) was founded in 1996 as a volunteer socio-economic linkage organization which gathers and represents enterprises and individuals as well as undertakes science and technology related researches and services for the sector of leather and footwear in Ho Chi Minh City and neighboring areas. SLA so far has more than 160 members

SLA acts as a broker institution between enterprises and governmental authorities at different levels in order to ease the difficulties and remove obstacles to promote and facilitate the sector development to better serve the community.

The roles of the Association includes: orientation for the development of the sector; supporting enterprises to build up long-term business vision; representing the sector business community to solve problems related to local and international trade promotion policies and; protecting the business community’s interests.

Over its 15-year history, SLA has become a reliable promotion and support organization for local companies. Additionally, the association has also provided support and services to foreign investors in seeking opportunities for investment and business cooperation in Vietnam in general and in Ho Chi Minh City in particular.

On 19th September 2011 – the 524th Anniversary (which is celebrated every year) of Vietnam Leather and Footwear sector, SLA was honored with Certificate and Flag of Merit by the People’s Committee of Ho Chi Minh City.

Leather and Footwear is a consumer and fashion production industry. It plays an important role in job creation and and export for the national economy. The sector has ranked, for three consecutive years, 3rd place in export chart, following the two sectors of petroleum and garment & textile, with the turnover of USD 5 billion in 2010 and expected USD 5.5 billion in 2011.

The sector includes over 550 enterprises (of which 70-80% are located in the South) with about 1,500 integrated factories having the capacity to produce 800 mil pairs/year (of which 30% are made of natural leather). The proportion of state owned and non-state owned and FDI enterprises are 18%, 74.6% and 13.6% respectively.

The main export market of the sector was EU market. However, due to the recent fluctuation of this market, the target of Vietnam leather and footwear sector has shifted to other markets as East Europe and Africa.

There are more and more enterprises to invest in technology upgrading, namely Thai Binh Footwear Joint Stock Company, Dong Hung Company, An Lac Footwear Joint Stock Company, Giay Viet Company (VinaGiay), Binh Tien Consumer Goods Production Company (Biti’s)… in order to gradually shift from OEM production to ODM production , completely active management of inputs and outputs. Enterprises are now concentrating on production technology upgrading, covering all processes from design to bulk production.

The sector’s supporting industries and supply of raw materials and accessories are still undeveloped. Most of (70%) raw materials and accessories are imported.

There are total 20 tanning factories and facilities of small scale which need to improve their waste water treatment system, trying to reach international standards to applying reduce toxic content.

The production, therefore, is still limited with over 100 mil pia per year, leading to the and high demand in importing leather from other countries as: Taiwan, Korea, China, Brazil, US, India and Argentina with the tax rate of 0% for raw skin and wet-blue skin.