In recent years, there have been many positive changes in the leather and footwear support industries. However, Vietnam still has to import most of its faux leather material and glue from other countries. In terms of soles, Vietnam can only meet 40 to 50 per cent of production needs.
"In my opinion, the leather and footwear industry is related to many other industries, including the production of raw materials, mold design, the chemical industry, etc. Therefore, if we want to develop the footwear industry, it’s necessary to develop the related production and supply chain at the same time." - Nguyen Huu Anh, Vice Director, Phong Chau Group.
It’s necessary to develop support industries in the leather and footwear sector. Besides the benefits of joining the global supply chain, Vietnam can provide a lot of labour, creating a large number of jobs.
"The support industries of many businesses and big groups in Vietnam cannot compete with others in the market like Korean and Japanese businesses as well as their support industries. Hence, we really need to try our best to affirm our own position in support industries. Moreover, support industries also require a large labour force." - Le Phuoc Vu, Chairman, Hoa Sen Group.
"If Vietnamese businesses can well develop their support industries, we can reduce production costs and thereby increase product competitiveness. Besides, we can participate in the supply chain along with big corporations in the region and around the world." - Doan Duy Khuong, Deputy Chairman, Chamber of Commerce and Industry of Vietnam.
Due to the fact that almost all support industry businesses are small- to medium-sized, State enterprises and large corporations need to support and encourage them.
"In my opinion, the support industries of major State businesses and all the corporations in Vietnam need to support other small and medium sized firms working in the same sector including finance, technology and business ideas. Then they will gradually become stronger, more competitive and strive to build their own brands." - Arin Jira, Vice President, Federation of Thai Industry.
With the current trend towards international integration, developing support industries to participate in the global value chain is seen as a prerequisite, not only in the leather and footwear sector, but in all sectors.
