Footwear exports to Australia surge20 November 2006
Vietnamese footwear exports to Australia have increased rapidly over the past three months according to the Ministry of Trade. In August alone, turnover was up 30% compared with August last year, posting a profit of nearly US$4 million for the month. Total turnover in the first eight months of 2006 was $23 million, an increase of 26% over the same period of 2005. The Ministry of Trade expects that Vietnam's total footwear exports to Australia for 2006 will bring a record profit of $38-40 million, a year-on-year increase of 25-30%. This can be attributed in part to the reduction of Australia's footwear tariff from 17.5% to 12.5% from January 2005. The tariff level is due to fall again in January next year, this time to 7.5%. Local sources say that Australia is fulfilling pledges made in the past to open its market for Vietnamese enterprises. However, the ministry warned that Vietnamese companies should study the Australian market thoroughly, as the country mainly imports leather and sports shoes which are made to strict standards.