Vietnam has become an attractive destination for Italia’s leading footwear companies to build factories, according to Italian daily newspaper Sole 24 ore.
One of its biggest Italian footwear producers, Coronet, has decided to move its factory from Guangdong province (China) to Vietnam. As from 2014, Coronet will make footwear products at its new factory in Ho Chi Minh City’s Giao Long industrial zone.
Coronet senior adviser Umberto de Marco said the company aims to produce 2 million metres of leather a year and will raise its productivity in the near future. Most materials are transported from China and the China-ASEAN Free Trade Agreement (FTA) will prevent Coronet from violating the anti-dumping law.
According to Sole 24 ore, Italian businesses have chosen Vietnam as a destination for investment due to some reasons, including available labour force and low production cost.
Moreover, Vietnam is one of five largest footwear producers in the world with total revenue of US$7.25 billion.
Alberto Vettoretti, an expert from Italian Dezan Shira & Associates Company which is operating in Vietnam, said the FTA between ASEAN and China, Japan and the Republic of Korea and price advantages will help Vietnam raise its competitive edge in the Asian market where all Italian businesses wish to profit from investing in the country.