Despite inviting the ire of consumers, wholesalers, retailers and distributors in the European market, EU's decision of slapping anti-dumping duties on Vietnamese shoes has caused big losses for Vietnam's footwear industry, said Nguyen Gia Thao, Chairman, Lefaso (Vietnam Leather & Footwear Association).
This decision has led to price of each pair of Vietnamese made leather shoe exported to the EU market to increase by euro 1.5 – 2.
Though STAF (Special Technology Advanced Footwear) and children's shoes are not covered under this round of anti-dumping duties, still there is lot at stake for footwear industry of Vietnam.
Nguyen said annual export value of Vietnam's footwear industry to the EU market is $2.5 billion, of which, $88 million is from leather-upper shoes and this value is affected by anti-dumping duties. When the rate increases to 16.8 percent, losses will even much higher.
However, on the contrary, EU does not expect any significant increase in the shoe prices on the retail front.
EU believes that duties will affect only 9 out of 100 shoes sold in Europe and would amount to euro 1.5 added to the average euro 8.5 wholesale prices.
Such shoes are sold between 30 and 100 euro in retail markets.
Since dumped wholesale prices had not been reflected in the retail price charged to consumers since 2001, there would be ample margin for importers and retailers to absorb any price increase.
According to the anti-dumping duty, the rate will be 4.2 percent from April 7; 8.4 percent from June 2; 12.6 percent from July 14 and 16.8 percent from September 15.
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