Matching paves way to Vietnam for footwear firms
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The Commerce Ministry says it has helped small and medium-sized enterprises increase their sales to the tune of more than Bt10 million through a recent business-matching project.
After the Thailand-Vietnam Business Forum/Business Matching project between 34 Thai footwear companies and 50 Vietnamese firms, at least seven Thai firms were able start doing business with Vietnamese enterprises, said Pranee Siriphand, director-general of the Foreign Trade Department.
“Immediate sales were worth Bt10 million. More trading value will be seen soon as many Vietnamese enterprises show high interest in doing businesses with Thai manufacturers [thanks to their] good quality and modern design,” Pranee said.
Not only have these Thai businesses acquired more trading opportunities, they also foresee a chance to supply raw materials for footwear production in Vietnam. Shoe manufacture in that country is based on European and US brands. Its largest footwear firm can produce up to 12.5 million pairs of shoes to supply the international market. Thailand could supply leather and components for shoe production.
Moreover, Thai enterprises have seen big potential to establish footwear plants in Vietnam, as the market is quite big with its 90-million population. About 60 per cent are young people, meaning high demand for fashion goods including shoes.
To ensure smooth operations in Vietnam, Pranee suggested Thai enterprises undertake business matching and penetrate the modern trade channel.
According to Commerce Ministry data, Thai footwear exports grew by 1.5 per cent year on year in the first five months to US$305.97 million (Bt9.513 billion).
