Vietnam Leather to increase capacity

Vietnam Leather and Shoe Corporation have worked out a list of projects to raise their capacity to 80 million pairs of shoes and 12 million leather bags by 2010. The state-owned company will build an industrial complex for shoe and accessories production in Hai Duong Province with an investment of VND500 billion (US$34 million). It will invest VND80 billion and call for local and foreign investors in the project, which will produce footwear, suitcases, handbags and schoolbags for export. Work is due to start early this year. The largest project, valued at US$65 million, is in the Southern Shoe Zone. It will include shoe factories and material workshops which can produce 25 million pairs of shoes by 2010. Vietnam Leather and Shoe also plan to establish a leather and shoe retail centre in HCM City and the Vietnam Leather Company. The company, valued at US$8 million, will be a merger of Saigon Leather and Vinh Tannery. It will have an annual output of 10 million sq ft of tanned leather by 2005. The corporation will invest US$15 million to modernise and expand production of several subsidiaries, including Thai Nguyen, An Lac, Yen Viet, Sai Gon and Phu Lam shoe companies, Danang Bags, Hue and Hanoi Leather and Shoe. With the new investments, they expect to earn US$752 million from export by 2010.