New Russian tannery for Vietnam?

Published: 16 January, 2006

Russia's ZAO Russkaya Kozha leather producers are reported to have announced plans to build a large tannery in Vietnam in 2007, according to the Vietnamese News Agency. Footwear manufacturers in Vietnam hope that the new tannery will help improve leather supplies and reduce the price of leather on the Vietnamese market.

ZAO Russkaya Kozha have already helped Vietnamese companies by supplying leather at discounted prices. Their high-quality leather is imported into Vietnam at a price of US$1.9 per sq ft, compared with US$2.2 charged by other suppliers. However, Russian leather has a share of just 0.16% of the Vietnamese leather market.