Indonesia tramples on Viet footwear due to EC's anti-dumping duty
16 Mar '06
1 min read
Several leading footwear brand names like Nike, Reebok and Adidas are facing bulging order books for footwear made in Indonesia since the European Commission has imposed anti – dumping lawsuit on Vietnam and Chinese footwear, Commercial Office of Vietnam based in Indonesia informed.
Adidas plans to open two footwear plants in Indonesia while Puma is also going to start production there, sources added.
Due to this situation, Vietnamese footwear sector will be greatly affected, according to Nguyen Gia Thao, Chairman, Vietnam Leather and Shoes Association (Lefaso).
In 2005, as per recent statistics, Indonesia earned about $1.5 billion alone through footwear exports.
Based on statistics from several recent years, Thuan argued that Vietnamese companies were not guilty of dumping footwear in the European market.
Vietnam's footwear export growth to Europe does not exceed 30 percent a year, while EU regulations state that the anti-dumping rate may be applied if the export growth exceeds 30 percent per year.
Leather and footwear products will be investigated in four aspects: financial calculations, production costs of leather and footwear companies, state subsidies for leather and footwear companies, and whether Vietnamese leather and footwear companies in fact operate under a market economy mechanism.
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