India is calling for Vietnamese leather and footwear firms to explore business opportunities and set up shop in the South Asian country, Rafeeque Ahmed, chairman of India’s Council for Leather Exports, told a business matching session in HCMC last week.
Ahmed said that under the high-profile “Make in India” program, the Indian government is paying more attention to the leather and footwear sector, so this is the right time for Vietnamese firms to come to set up shop to meet demands of India and exporting markets.
Ahmed said Vietnamese leather and footwear businesses should not miss opportunities in a huge market like India. The size of India’s footwear market is US$6.5 billion this year and is forecast to rise to US$12 billion in 2020, he added.
India is considered the world’s second-largest footwear producer with around 2.2 billion pairs each year and 95% of the volume is for domestic consumption.
Ahmed noted that India has many suppliers of quality leather as well as a young population, skilled workers, and competitive production cost.
Cattle in India accounts for 21% of the world’s total. Besides, tanned leather produced in India can meet 10% of global demand, heard the meeting between Indian and Vietnamese firms in the sector.
According to Vietnamese leather and footwear firms, Vietnamese enterprises from the industry are not present in the sector in India. They said labor cost in India is reasonable and the country boasts an abundant supply of materials.
Diep Thanh Kiet, vice chairman of the Vietnam Leather and Footwear Association (Lefaso), said domestic leather and footwear enterprises mainly make products for export, with around 850 million pairs of shoes last year.
However, Vietnam’s material supply falls short, especially leather. The country spent US$1.2 billion last year importing leather, mainly from South Korea, Thailand, and China.
Although India has an ample supply of quality materials and its prices are reasonable, Vietnamese enterprises are concerned about high shipping costs as ships have to transit in Singapore, Kiet said.
Indian Ambassador to Vietnam Parvathaneni Harish said two-way trade between Vietnam and India reached US$7 billion last year and is projected to double to US$15 billion in 2020. The leather and footwear sector will contribute to achieving the target.
The Indian government pledges incentives for investors, especially from Vietnam in the leather and footwear sector, as it is regarded as one of the key sectors in India, the ambassador said.
Source: http://english.thesaigontimes.vn/ - Van Nam, Ban Cao
Key words: India, seeks, to woo leather-footwear investors, from Vietnam.
