It is more than possible for the footwear industry to realise an export turnover of US$6.2 billion by 2010, said deputy chairman of the Viet Nam Leather and Footwear Association, Nguyen Duc Thuan.

"This optimistic target stemmed from a solid foundation of likely export revenue at $4.2 million this year and an average annual growth of 12-15 per cent," Thuan added.

The $6.2 billion target is part of a strategy released by the Ministry of Industry and Trade last week for industry development during the 2007-2010 period.

According to the masterplan, it has been forecast that the industry will produce 720 million pairs of shoes, 80.7 million bags and 80 million sq.m of leather.

To achieve the objective, Thuan said that 412 footwear manufacturers nationwide need approximately VND9.15 trillion ($572 million) to expand their production operations between now and 2010.

In addition, the industry anticipates it will attract more than $348 million in investment capital from foreign firms during the same period.

The industry is specifically encouraging foreign enterprises to inject more into leather manufacturing projects, accessories and raw material production by using cutting-edge technology.

The strategy suggests that existing producers should raise more money by setting up joint ventures, joint stock companies and by issuing shares and bonds.

Thuan claimed that: "With the industry’s solid development, it is easy enough to allure overseas investors."

To become even more competitive, the industry plans to build up more industrial zones specialising in leather and shoe projects with modern manufacturing equipment that meets environmental standards.

Thuan also stressed the significance of trade promotion to emerging markets in North America, such as Mexico, America and Canada, rather than merely targeting the EU market.

"The EU market accounts for 40 per cent of the total industry’s export turnover at present; it is anticipated to shrink to 20 per cent by 2010," he said. — VNS