According to the report “Half million workers in the footwear industry in danger of losing their jobs: Is there a balance between trade and development?” of the Viet Nam Leather and Footwear Association (Lefaso) and Action Aid Viet Nam (AAV), the number of orders for export shoes is decreasing seriously, creating bad impacts on social issues such as jobs and income for workers.
Orders were fewer right after the start of the anti-dumping lawsuits. The scarcity of orders in late months of 2005 caused the output of leather-capped shoes to decrease 30% compared with that of 2004. Orders placed in the first quarter of 2006 dropped 20% - 50% year-on-year.
All of the 21 surveyed enterprises have not received any order for the coming months since May 2006. The volume of orders is forecast to keep decreasing in the third quarter of 2006.
An initial estimation shows that the lawsuits can possibly put 500,000 workers in the local footwear industry and a large number of employees in related industries in danger of losing their jobs.
Turnovers of 76% surveyed enterprises decrease 15%-60% year-on-year.
Accordingly, Lefaso and AAV have sent a petition to the European Commission (EC) for reasonable re-consideration of its decision on anti-dumping duties against Viet Nam’s footwear on the basis of equal trade, fairness and laborers’ legitimate interests.
The report was made from a survey of 21 Viet Nam’s leather footwear enterprises in the first haft of May 2006, nearly one month after the EC’s announcement on temporary taxes, starting at 4.2%, imposed on leather-capped shoes export to the European Union (EU) market.
The report was announced in Ha Noi on June 19.
