Name: Phm Ngc Minh Qun (leader) Phan Duy Hi Anh V Vit Anh Vietnam is ranked as one of 10 leading

g exporting countries on the current international market for leather shoes, particularly in the EU market, Vietnam ranks second after china.

From: http://www.business-in-asia.com/vietnam/manufacture_footwear_vn.html

STRENGTH
In Vietnam, Footwear industry has a potential strength. In 2010, we have 6.2 billion US dollars in export value. And we can proudly announce that we rank 4th globally in footwear industry, selling. We have much strength that cant be denied that: First we got a huge in number of labors to expand the product. Our product is fit well in the market. EU is the largest market of our shoes industry. We are in WTO, so its easy to remove high tax and enter the market Products got high quality. And EU removed the anti-dumping tax in the previous months have our footwear industry is easier to make profit and give us a big advantage. Our footwear industry have provided jobs for around 700.000-850.000 persons and 80% of them is woman and improve the country development. We also got support from the government like reduce the interest rate so the enterprise and producer is easily to get the capital. In the future, may be we can have new technology to increase the productivity and our shoes industry will be strengthen. We know exactly how to develop this industry and protect the property right. We passed all the examination of E.U and we acknowledge about the trade issues. Because we got huge labors so we can easily flexible in custom order and our strength is customer service. This is our strength.

WEAKNESS
The first and most important is the technological level of the footwear industry in Vietnam is average and pretty average. New manufacturing process is mechanized, but has not reached the level of automation. The rate of work to be done manually is also high. In addition, the ability to invest in new technology transfer is restricted by limited financial resources. Add to that a team of expert knowledge and technology updates were too small and did not meet the development needs of companies in the industry. Plus there is the experience and ability to negotiate and sign contracts on technology is limited

Besides the restrictions on the quality of human resources, according to the Vietnam Leather and Footwear Association is available to over 80% of workers in the untrained (But this is only the relative numbers because currently only about 30% of footwear firms are members of the Association Assembly) but also shows the problem is the quality of human resources is a drag on growth industries. Along with the management staff of the main branches to the left branch, and to learn their profession, just as .But, in fact, not many companies interested to invest in a satisfactory way to the stage of training that most workers are only theoretical training in a short time before the official work, so, although like it or not, the companies in the industry itself need to actively "help yourself" in both the short and long term before receiving the "float rescue" from the state. A minor restriction Vietnam's footwear industry is a matter of materials and supporting industries. While raw materials account for 68-75% of total cost price of products but it is depended heavily on imports. Currently, materials for domestic production only meet about 40% while demand for materials, chemicals, machinery and equipment mainly rely on imported sources. In addition, limiting the possibility of intensive investment for scientific research, technology has adversely affected the capacity of product designs; problem of environmental hygiene and safety labor in production; the establishment of industrial zones for leather and footwear industry majors too many difficult challenges or before the fierce competition of the same products from other countries in the region, most is China. In addition, not to mention the impact of financial crisis and global economic downturn as well as current difficulties in accessing stimulus funds, the program supports the Government's export ... may be considered a minor problem which, if passed, the footwear will definitely develop faster, more powerful than what had been in the past.

OPPORTUNITY
From: http://www.lefaso.org.vn/default.aspx?portalid=1&tabid=18&itemid=295 Recent years, Vietnams footwear industry integrate international economic. Taking part in ASEAN bring to many profit such as: exchange of goods is easier, less obstruction, eliminate non- tariff barriers. Specially, technology transfer is faster. That makes good conditions to expand domestic market as well as foreign market for Vietnams footwear industry. In footwear industry, labor holds important position. In 2007, Vietnams footwear industry has more than 600.000 employees (9% of industry labor force). This can be considered an advantage compared to low labor cost. Vietnams footwear industry has been focused on communication and promotes the image of Vietnams footwear industry as a national manufacturer and exporter of leather shoes potential. Improving understands of market regulation, anti- dumping and

using law to resolve conflict. Innovation of sale method has been diversified such as: wholesaler, retailers, distribution channels and so on. With a population of 80 millions people is a potential market. On the other hand, the quality of life is higher , the ability of shopping is improved , the country is getting further integrating into the world is the opportunity for the leather industry shoes. Exporting market for leather shoes Vietnam is increasingly expanding and stability: EU market : Vietnam footwear exports to the EU rapid growth. In 2007, EU remained the largest consumption market of Vietnam's footwear sales of 2.6 billion, up 33.9% compare to 2006 and hold for 54% of the total export value of Vietnamese footwear Nam America market : In 2004, Vietnam became the fourth largest supplier after China, Brazil, Indonesia. In 2007, exports to the U.S. reached 995 million, up 30% compared to 2006. January / 2008, footwear exports to the U.S. increased 25% over 2007, reaching 93.8 millions $, the market is the second largest export sector.

THREAT
From: http://www.lefaso.org.vn/default.aspx?portalid=1&tabid=18&itemid=295 We have many competitors from China, Taiwan, India, Thailand. They are all strong industry countries, especially China, our main threat. They have modern technology and better designs for their products, and they have more labor. And beside just recently, China is a new member of WTO, which bring them many opportunities for exports. On the other hand, our exports are limited in some areas like Russia, the Middle East, Africa although they are ideal market for shoes. We have weak export capacity, and dont have our own designs. Also, we lack of raw material (our leather factories can only provide 20% of material, we have to import other 80% - LEFASO data 2007). Moreover, we have low technology and basic specialists, which leads to low labor productivity.

CONCLUSION
Our footwear industry has many achievements due to our non-stopping efforts. What we have to do is promoting our strength and overcoming our weaknesses and make use of our oppotunites. In the international market, we have many threats, so we will improve ourself to be more productive and effective and Vietnam footwear industry will be strong and competitive.