Indonesia aims for EU trade deal to match Vietnam in footwear exports

Vietnam has already established a trade agreement with the European bloc through the EU-Vietnam Free Trade Agreement (EVFTA), which aims to eliminate 99 per cent of all tariffs. This agreement has facilitated increased Vietnamese footwear exports to the European market. Following this trade deal, Indonesia is actively pursuing a similar pact with Europe to ensure a level playing field for both Asian countries. Currently, Vietnam enjoys duty-free access for its footwear in the European market.

Europe imported footwear worth $56.131 billion during January-September 2023. Vietnam emerged as the second-largest supplier, with footwear shipments totalling $8.887 billion, representing a 15.83 per cent share. Vietnam was second only to China, which supplied footwear worth $11.665 billion, accounting for 20.78 per cent of the total footwear imports during the same period. Meanwhile, Indonesia supplied footwear worth $2.932 billion in the first nine months of the previous year, equivalent to 5.22 per cent of Europe's total footwear imports, according to Fibre2Fashion’s market insight tool TexPro.

In 2022, Vietnam exported footwear worth $11.739 billion to the EU, accounting for 14.86 per cent of its total imports worth $78.971 billion. China was the largest footwear supplier, with a 24.13 per cent share. Indonesia's shipments amounted to $4.271 billion during the same period, representing 5.41 per cent of the total footwear imports. Vietnam and Indonesia held the positions of the second and fifth-largest suppliers, respectively.

Five years ago, in 2019, Europe imported footwear worth $71.134 billion. Vietnam remained in the second position after China, with footwear shipments valued at $8.484 billion, accounting for 11.93 per cent of the total. In contrast, Indonesia was ranked seventh, with European footwear imports from the country valued at $2.929 billion, representing 4.12 per cent of the total, as per TexPro.

ALCHEMPro News Desk (KUL)