VIETNAM LEATHER AND FOOTWEAR INDUSTRY REPORT
Q1/2018
Contents
Executive summary 5
1. Business environment 7
1.1 Macroeconomic situation 7
1.2 Legal framework 14
1.3 Free trade agreements 18
2. Overview of Global Leather and Footwear Industry 27
2.1 Value chain of Leather and Footwear Industry 27
2.2 Production Methods 30
2.3 Leather industry 32
2.3.1 Raw materials 33
2.3.2 Production 34
2.3.3 Consumption 35
2
2.3.4 Import export 36
2.3.5 Price movements 37
2.3.6 Some typical countries 38
2.4 Footwear industry 39
2.4.1 Raw materials 40
2.4.2 Production 41
2.4.3 Consumption 42
2.4.4 Import export 43
2.4.5 Footwear prices 46
2.4.6 Some typical countries 47
2.4.7 Some famous brandname 50
Contents
3
3 Overview of Vietnam Leather- Footwear industry 52
3.1 History of Establishment and Development 52
3.2 Industry Scale and Features 55
3.3 Leather industry 58
3.3.1 Raw materials 59
3.3.2 Production – Consumption 60
3.3.3 Export 61
3.3.4 Import 62
3.3.5 Inventory 63
3.4 Footwear industry 64
3.4.1 Raw materials 65
3.4.2 Production 68
3.4.3 Consumption 70
3.4.4 Export 76
3.4.5 Import 81
3.4.6 Footwear prices 82
3.4.7 Inventory 83
3.4.8 Distribution channels 84
3.5 Some other leather products 88
3.6 Machinery/Technology 90
3.7 Risks and Threats 94
3.8 Industry Planning 99
3.9 Driving Forces and Forecasts 103
4. Enterprise Analysis 109
Appendix 120
4
MOIT Ministry of Industry and Trade
MARD Ministry of Agriculture and Rural Development
CBICentre for the Promotion of Import from developing
countries
CICB Centre for the Brazilian Tanning Industry
FAOFood and Agriculture Organization of the United
Nations
FED Federal Reserve System
IMF International Monetary Fund
Abbreviation
Lefaso Vietnam Leather, Footwear and Handbag Association
GDVC General Department of Vietnam Customs
GSO General Statistics Office of Vietnam
UN Comtrade United Nations Commodity Trade Statistics Database
USITC United States International Trade Commission
VIRAC Vietnam Industry Research and Consultant
World Footwear
5
The global tanning industry is characterized by
small and medium sized family businesses.
In recent years, the global consumption growth
has been negligible for cowhide and decreased
2%/year for sheep and goat skins.
The Far East continues to be the largest net
importer of cow leather.
Executive summary
Latin America is expected to continue to be
the most important net exporter of bovine
leathers.European intra-regional trade is the largest
component of the international footwear
trade, accounting for almost one third of
world exports.
The world's average export price of footwear
has increased steadily over the years,
The most prominent issues of the Vietnamese
tanning industry are raw materials,
environmental issues, production technology
and human resources.
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Leather and footwear manufacturing is a key
industry of Vietnam,
Import value of footwear in the years 2010 -
2015 of Vietnam was recorded at a low level of
just under USD 100 million.
Inventory tended to decrease in 2016 and
2017.
Executive summary
.
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1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Free trade agreements
Contents
8
1. Business environment
1.1 Macroeconomic situation
• GDP growth in 2017 reached 6.81%,
• Causes leading to GDP growth in 2017:
• Consumer price index (CPI) in 2017 has a lot of changes.
• According to the General Statistics Office, there were 8/11 groups of
goods and services having CPI increase in December compared with
the previous month
Source: VIRAC, GSO
GDP growth rate, 2010 – 2017
Source: VIRAC, GSO
Monthly CPI fluctuations, 2014 - 2017
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Increasing disposable income is a positive factor in boosting the
domestic footwear and handbags industry.
1. Business environment
1.1 Macroeconomic situation
Average population and population growth, 2006 -2017
Million people
Total disposable income and household expenditure, 2010 – 2017f
Source: VIRAC, Economist Intelligence Unit
USD billion
Source: VIRAC, GSO
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• Vietnam's import and export in 2017 still heavily depends on FDI inflows.
1. Business environment
1.1 Macroeconomic situation
Source: VIRAC, GDVC
Source: VIRAC, GDVC
USD millionExport and import turnover, Q1/2015 – Q4/2017
Export structure by commodity category, 2017
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1. Business environment
1.1 Macroeconomic situation
The movement of exchange rate in 2017 was quite bleak, VND/USD
exchange rate did not have many fluatuations
In 2017, foreign investors have invested in 19 industries,
Source: VIRAC summarized
Source: VIRAC, FIA
FDI attraction by sectors, 2017
VND/USD exchange rate, 2016 - 2017
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1. Business environment
1.1 Macroeconomic situation – The effect of related industries
Source: VIRAC, GSO
The market share of modern retail in total retail revenue, 2014
Source: VIRAC, GSO
VND trillion
Retail sales in Vietnam, 2010 - 2017
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1. Business environment
1.1 Macroeconomic situation
• Consumer confidence index in Vietnam remained stable at a high
level in Q3/2017, with 116 points (down 1 point from Q2/2017).
Source: VIRAC summarized
Consumer confidence index – CCI
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1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Free trade agreements
Contents
15
Regulations on export-import:
Document Date Ministry/Department Content
Legal documents related to leather quarantine
Source: VIRAC summarized
1. Business Environment
1.2 Legal Framework
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1. Business environment
1.2 Legal framework
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Regulations on production:
1. Business environment
1.2 Legal framework
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1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Free trade agreements
Contents
19
Vietnam's integration process since 1995 to date
By the end of 2017, Vietnam has signed, implemented and has been negotiating a total of 16 FTAs. Vietnam’s accession to international trade
agreements brings both opportunities and challenges for domestic firms.
1. Business environment
1.3 Free trade agreements - TPP
1998 2000 2002 2007 2008 2009 2011 2015 2016 201720061995
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TPP is a free trade agreement among 12 countries with the purpose of economic integration in the region of Asia – Pacific.
1. Business environment
1.3 Free trade agreements – CPTPP
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Products Country MNF taxes
Tax reduction
• The Agreement is expected to come into effect in 2018
Rules of Origin
Current leather – footwear import taxes of
some countries
Source: VIRAC, Lefaso
1. Business Environment
1.3 Trade Agreements- TPP
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Products Current taxes Tax reduction schedule
Tax reduction schedule for footwear products and footwear materials of Vietnam
Source: VIRAC, MOIT
1. Business Environment
1.3 Trade Agreements - TPP
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1. Business Environment
1.3 Trade Agreements - TPP
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Vietnam – EU Free Trade Agreement
Category GSP EVFTA
Source: VIRAC summarized
1. Business Environment
1.3 Trade Agreements - FTA
Some regulations of EVFTA and GSP
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Technical barriers in the EU market
Leather products Footwear
Some regulations of the EU with imported leather – footwear products
Source: VIRAC summarized
1. Business Environment
1.3 Trade Agreements - FTA
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Tariff reductions and technical barriers
Impact Assessment
1. Business Environment
1.3 Trade Agreements – ASEAN Economic Community (AEC)
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2. Overview of global leather and footwear Industry
2.1 Value chain of Leather and Footwear Industry
2.2 Production Methods
2.3 Leather industry
2.4 Footwear industry
Contents
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2. Overview of global leather and footwear Industry
2.1 Value chain of Leather and Footwear Industry
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Designing
Manufacturing
Retailing
2. Overview of global leather and footwear Industry
2.1 Value chain of Leather and Footwear Industry
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Contents
2. Overview of global leather and footwear Industry
2.1 Value chain of Leather and Footwear Industry
2.2 Production Methods
2.3 Leather industry
2.4 Footwear industry
31
OEM/FOB
ODM
OBM
2. Overview of global leather and footwear Industry
2.2 Production Methods
Source: VIRAC
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Contents
2. Overview of global leather and footwear Industry
2.1 Value chain of Leather and Footwear Industry
2.2 Production Methods
2.3 Leather industry
2.4 Footwear industry
2. Overview of global leather and footwear industry
2.3 Leather industry – 2.3.1 Raw materials
33
Source: VIRAC, FAO
95% of the world's leather material comes mainly from the food industry and
is directly affected by meat and milk demand.
Number of cow, buffalo, sheep, goat and other animals
providing soft leather, 2010 – 2015e
Cowhide, buffalo hides, sheepskin and goat skin, 2010 – 2015e
Thousand pieces
Head
Source: VIRAC, FAO
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2. Overview of global leather and footwear Industry
2.3 Leather industry – 2.3.2 Production
India and Brazil have abundant sources of raw materials and have
developing tanning industry.
South Africa's leather industry has long been one of the strongest
growing regions in Africa.
Thousand tons
Leather production, 2010 - 2015
Source: VIRAC, FAO
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2. Overview of global leather and footwear Industry
2.3 Leather industry – 2.3.3 Leather consumption
Source: VIRAC, FAO
Million square feetLeather consumption, 2010 – 2014
Leather consumption structure by products, 2013
Source: VIRAC
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2. Overview of global leather and footwear Industry
2.3 Leather industry – 2.3.4 Leather import-export
Source: VIRAC, UN comtrade
USD billion
Export in 2016 Import in 2016
CountryValue
(USD billion)Country
Value(USD billion)
Top importing – exporting countries HS 41, 2016e*HS 41
Source: VIRAC, UN comtrade
Source: VIRAC, UN comtrade
Leather export structure by type, 2016Export of raw hides and tanned hides, 2012 - 2016
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2. Overview of global leather and footwear Industry
2.3 Leather industry – 2.3.5 Leather price movements
Source: VIRAC, FED, IMF
Rawhide price fluctuations in the US, 1/2012 - 6/2017
USD/ton
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2. Overview of Global Leather and Footwear Industry
2.3 The Leather Industry – 2.3.6 Typical countries
India
Bangladesh
Brazil
Ethiopia
Pakistan
Italia
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Contents
2. Overview of global leather and footwear Industry
2.1 Value chain of Leather and Footwear Industry
2.2 Production Methods
2.3 Leather industry
2.4 Footwear industry
40
2. Overview of global leather and footwear Industry
2.4 Footwear industry – 2.4.1 Raw materials
Annually, imports and exports of raw materials remain at USD 6-7 billion
with uneven growth.
Source: VIRAC, Trademap
USD billion
Top importers of footwear materials, 2016e
Most of the top 2016 importing countries are the largest exporters of
footwear.
Source: VIRAC, Trademap
Footwear material import, 2010 – 2016e
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2. Overview of global leather and footwear Industry
2.4 Footwear industry – 2.4.2 Footwear production
According to World Footwear data, total global footwear production
maintained at 23 billion pairs in the last two years after an average growth of
5% from 2010 to 2014.
Source: VIRAC, World Footwear
No Country Share Volume
Top 10 footwear producers 2016
Source: VIRAC, World Footwear
Billion pairs
Source: VIRAC, World Footwear
Global footwear output, 2011 - 2016
Footwear production structure by region, 2016
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2. Overview of global leather and footwear Industry
2.4 Footwear industry – 2.4.3 Footwear consumption
Top 10 footwear consuming countries, 2014 - 2016 (Million
pairs)
Source: VIRAC, Worl Footwear
Source: VIRAC, World Footwear
Billion pairs
Source: VIRAC, World Footwear
No Country 2014 2015 2016
Global footwear consumption, 2010 - 2016
Market share of consumption by region, 2016
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2. Overview of global leather and footwear Industry
2.4 Footwear industry – 2.4.4 Footwear import-export
Source: VIRAC, World Footwear
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2. Overview of global leather and footwear Industry
2.4 Footwear industry – 2.4.4 Footwear import-export – Export
No CountryValue
(USD thousand)
Share(%)
Growth rate
compared to
2015
Top 10 footwear exporting countries by value, 2016
Source: VIRAC, World Footwear, Trademap
USD billion
Source: VIRAC, World Footwear, Trademap
Footwear exports, 2010 – 2016e
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2. Overview of global leather and footwear Industry
2.4 Footwear industry – 2.4.4 Footwear import-export - Import
Source: VIRAC, Trademap
Market share (import value) by region, 2016
No Country Value Share
Top 10 footwear importing countries by value, 2016
Source: VIRAC, Trademap
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2. Overview of global leather and footwear Industry
2.4 Footwear industry – 2.4.5 Footwear prices
46
Source: VIRAC, World Footwear
The movement of average global footwear export price, 2004 - 2015
Source: VIRAC, The Bureau of Labor Statistics
CPI of footwear in urban areas of the world, 1/2012 - 12/2017Content is intentionally removed for demo purpose
2. Overview of global leather and footwear Industry
2.4 Footwear industry – 2.4.6 Some typical countries
47
China - Exporting shoes more than any other country
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2. Overview of global leather and footwear Industry
2.4 Footwear industry – 2.4.6 Some typical countries
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The US - The world's largest footwear importing country
USD billion
Source: VIRAC, Trademap
Footwear import-export in the US, 2010 - 2016
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2. Overview of global leather and footwear Industry
2.4 Footwear industry – 2.4.6 Some typical countries
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EU - The world's largest shoes importing region
USD billion
Source: VIRAC, Trademap
Footwear import-export in EU, 2010 - 2016
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2. Overview of global leather and footwear Industry
2.4 Footwear industry – 2.4.7 Some famous shoe brand names
# 1: Nike
# 2: Adidas
# 3: Converse
# 4: Reebok
# 5: Vans
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2. Overview of global leather and footwear Industry
2.4 Footwear industry – 2.4.7 Some famous shoe brand names
# 6: Puma SE
# 7: Steve Madden
# 8: Dr. Martens
# 9: Aldo
# 10: New Balance
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3. Overview of Vietnam Leather- Footwear industry
3.1 History of Establishment and Development
3.2 Industry Scale and Features
3.3 Leather industry
3.4 Footwear industry
3.5 Some other leather products
3.6 Machinery/Technology
3.7 Risks and Threats
3.8 Industry Planning
3.9 Driving Forces and Forecasts
Contents
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3. Overview of Vietnam Leather- Footwear industry
3.1 History of Establishment and Development
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3. Overview of Vietnam Leather- Footwear industry
3.1 History of Establishment and Development
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3. Overview of Vietnam Leather- Footwear industry
3.1 History of Establishment and Development
3.2 Industry Scale and Features
3.3 Leather industry
3.4 Footwear industry
3.5 Some other leather products
3.6 Machinery/Technology
3.7 Risks and Threats
3.8 Industry Planning
3.9 Driving Forces and Forecasts
Contents
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Category Value
General information about the leather and footwear industry of Vietnam
Source: VIRAC, GSO, GDVC
3. Overview of Vietnam's Leather and Footwear Industry
3.2 Industry Scale and Feature
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3. Overview of Vietnam's Leather and Footwear Industry
3.2 Industry Scale and Feature
Localization ratio by enterprises and sectors (%)
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3. Overview of Vietnam Leather- Footwear industry
3.1 History of Establishment and Development
3.2 Industry Scale and Features
3.3 Leather industry
3.4 Footwear industry
3.5 Some other leather products
3.6 Machinery/Technology
3.7 Risks and Threats
3.8 Industry Planning
3.9 Driving Forces and Forecasts
Contents
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3. Overview of Vietnam Leather- Footwear industry
3.3 Leather industry – 3.3.1 Leather materials
NThe major factors of the Vietnam tanning industry include raw material
sources, environment, production technology and human resources.
The number of buffalo, cow, goat and other animals supplying soft leather
2010 - 2015
Thousand pieces Thousand tons
Source: VIRAC, FAO
Head
Source: VIRAC, FAO
Unprocessed hides, 2010 – 2015 Content is intentionally removed for demo purpose
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The fact is that there are no new businesses expanding, new investment
in leather production due to many difficulties:
Total output of leather products, 2012 – 2017e
3. Overview of Vietnam Leather- Footwear industry
3.3 Leather industry – 3.3.2 Leather production and consumption
Source: VIRAC, GSO
Million m²
* Excluding synthetic leather
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Source: VIRAC, Lefaso
Source: VIRAC, UN Comtrade, Lefaso
3. Overview of Vietnam Leather- Footwear industry
3.3 Leather industry – 3.3.3 Leather import
USD million
Leather imports, 2010 - 2017e
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Source: VIRAC, UN Comtrade
3. Overview of Vietnam Leather- Footwear industry
3.3 Leather industry – 3.3.4 Leather export
Leather exports, 2012 – 2016e Leather export structure by country, 2016e
Source: VIRAC, Trademap
USD million
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Source: VIRAC, GSO
3. Overview of Vietnam Leather- Footwear industry
3.3 Leather industry – 3.3.5 Inventory
Thousand tonsLeather inventory by type, 2010 - 2017e
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3. Overview of Vietnam Leather- Footwear industry
3.1 History of Establishment and Development
3.2 Industry Scale and Features
3.3 Leather industry
3.4 Footwear industry
3.5 Some other leather products
3.6 Machinery/Technology
3.7 Risks and Threats
3.8 Industry Planning
3.9 Driving Forces and Forecasts
Contents
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Imports of textile and garment materials, leather and footwear have increased steadily over the years with a CAGR of 10.94% in the period 2010 – 2017e
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.1 Raw materials
Import of textile and leather – footwear materials, 2010 – 2017e
Source: VIRAC, GDVC
USD million
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Source: VIRAC, Lefaso
Raw materials Capacity/Demand
Materials supply capacity, 2015
Source: VIRAC, Lefaso
3. Overview of Vietnam's Leather and Footwear Industry
3.4 Footwear Industry– 3.4.1 Raw Materials
Import structure (value) of raw materials by
country, 2015
Source: VIRAC, GDVC
Import structure of textile and garment materials,
footwear by country, 2017e
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The reasons of shortage of raw materials are:
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.1 Raw materials
Export of textile and leather – footwear materials, 2012 – 2017e
Export structure of textile and leather – footwear materials, 2017e
USD million
Source: VIRAC, GDVC
Source: VIRAC, GDVC
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Number of enterprises by region, 2015
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.2 Footwear production
Source: VIRAC
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The growth rate of footwear production has fallen sharply since 2016e,
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.2 Footwear production
Output of main products, 2012 – 2017e
Source: VIRAC, GSO
Million pairs
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Source: VIRAC
Vietnam is in the top four largest footwear producers in the world in terms
of quantity,
The domestic market with more than 90 million people is a great potential
for leather and footwear industry, especially under the faster growth of the
economy and the strong development of online shopping in Vietnam.
Source: VIRAC, World Footwear
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.3 Footwear consumption
Million pairs
VND trillion
Retail sales of footwear, 2012 - 2017e
Domestic footwear consumption, 2010 - 2016e
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Sneakers sales increased sharply in 2017,
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.3 Footwear consumption
Source: VIRAC
Source: VIRAC
VND billion
Sales of some major sneakers, 2017e
Sneakers retail sales, 2012 - 2017e
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Source: VIRAC, Lefaso
Women's footwear consumption accounts for the largest share of the
market in terms of value. Women's footwear continued to grow
rapidly in 2017.
Consumer structure by shoe spending per month, 2013
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.3 Footwear consumption
Source: VIRAC
Consumption struction by value, 2017e
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Vietnam China
Competitive comparison between Vietnamese and Chinese products
Source: VIRAC
Source: VIRAC, VITIC
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.3 Footwear consumption
Structure of footwear consumption, 2014
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Footwear consumption segments in Vietnam
Source: VIRAC
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.3 Footwear consumption
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Consumption trends:
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.3 Footwear consumption
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Footwear exports, 2012 –2017e
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.4 Footwear export
USD million
Source: VIRAC, GDVC
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3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.4 Footwear export
Vietnam's footwear exports have increased in most markets, especially
China, Germany and the United States.
USD million
Source: VIRAC, GDVC
Footwear exports by country, 2016 - 2017e
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No FDI Vietnam
Source: VIRAC, GDVC
Typical footwear exporting enterprises, 2017Contribution structure of enterprises in
leather - footwear export, 2012 –2017e
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.4 Footwear export
Source: VIRAC, Lefaso
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Top major importing markets of the US, 2012 - 2016
Source: VIRAC, UN Comtrade
Unit: USD million
Top major importing markets of EU-28, 2012 - 2016
Source: VIRAC, Eurostat
Unit: EUR million
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.4 Footwear export
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Source: VIRAC, Lefaso
Export value by HS codeUnit: USD million
Source: VIRAC, Lefaso
Export price by HS code in some countriesUnit: USD
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.4 Footwear export
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Source: VIRAC, UN Comtrade
Source: VIRAC, UN Comtrade
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.5 Footwear import
Footwear imports, 2010 – 2016e
USD million
Footwear import structure by country, 2016e
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Source: VIRAC, World Footwear
Price of some major footwear types in Vietnam, 2012
Source: VIRAC, World Footwear
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.6 Footwear prices
Average footwear export price, 2014
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Source: VIRAC, GSO
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.7 Inventory
Thousand pairs
Footwear inventory accounts for about 2% of total annual production.
Inventory, 2012 - 2017e
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Source: VIRAC, Lefaso
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.8 Distribution channels
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Distribution system specialized in shoe items:
Non-specialized distribution system
85
Importers/Wholesalers
Agents
Suppliers/Shopping malls
Shopping malls are divided into 2 types:
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.8 Distribution channels
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Retailers specializing in shoe items
Footwear stores
Non-specilized stores
Sportwear retailers
Supermarkets, markets and discount stores
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.8 Distribution channels
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Market stalls / markets and factory outlets
Online shopping / home delivery
3. Overview of Vietnam Leather- Footwear industry
3.4 Footwear industry – 3.4.8 Distribution channels
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3. Overview of Vietnam Leather- Footwear industry
3.1 History of Establishment and Development
3.2 Industry Scale and Features
3.3 Leather industry
3.4 Footwear industry
3.5 Some other leather products
3.6 Machinery/Technology
3.7 Risks and Threats
3.8 Industry Planning
3.9 Driving Forces and Forecasts
Contents
89
Products are related products: handbag, suitcase, bag
Source: VIRAC, GDVC
Source: VIRAC, GDVC
3. Overview of Vietnam's Leather and Footwear Industry
3.5 Some other leather products
USD Million
Export of bags, suitcases, wallets, etc 2012 – 2017e
Export structure by enterprise, 2013 – 2017e
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3. Overview of Vietnam Leather- Footwear industry
3.1 History of Establishment and Development
3.2 Industry Scale and Features
3.3 Leather industry
3.4 Footwear industry
3.5 Some other leather products
3.6 Machinery/Technology
3.7 Risks and Threats
3.8 Industry Planning
3.9 Driving Forces and Forecasts
Contents
3. Overview of Vietnam Leather- Footwear industry
3.6 Machinery/Technology
91
Besides the difficulties in raw materials, Vietnam also has difficulties in
terms of technology when machinery of leather and footwear has just
stopped at medium level.
Source: VIRAC, UN Comtrade, Lefaso
Machinery imports, 2010 – 2017e
Source: VIRAC, Lefaso
USD million
Machinery import structure, 2017eContent is intentionally removed for demo purpose
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Traditional
technology
New
technologySaving
Tanning technology in Europe
Source: VIRAC
Traditional technology Cleaner technology
Tanning technology in Vietnam
Source: VIRAC
3. Overview of Vietnam's Leather and Footwear Industry
3.6 Machinery – Technology - Tanning
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Manual and semi-automatic manufacturing
3. Overview of Vietnam Leather- Footwear industry
3.6 Machinery/Technology- Footwear production
That automatic Robots are used by the big shoe brands is a threat to
Vietnam.
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3. Overview of Vietnam Leather- Footwear industry
3.1 History of Establishment and Development
3.2 Industry Scale and Features
3.3 Leather industry
3.4 Footwear industry
3.5 Some other leather products
3.6 Machinery/Technology
3.7 Risks and Threats
3.8 Industry Planning
3.9 Driving Forces and Forecasts
Contents
3. Overview of Vietnam Leather- Footwear industry
3.7 Risks and Threats
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Economic integration risks
Legal risks
3. Overview of Vietnam Leather- Footwear industry
3.7 Risks and Threats
96
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Economic risks
Labour risks
Raw material risks
3. Overview of Vietnam Leather- Footwear industry
3.7 Risks and Threats
97
Competive risks
Risks from industrial revolution 4.0
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Difficulties in grasping the domestic market
Strengths Weaknesses
Opportunities Threats
3. Overview of Vietnam Leather- Footwear industry
3.7 Risks and Threats
98
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99
3. Overview of Vietnam Leather- Footwear industry
3.1 History of Establishment and Development
3.2 Industry Scale and Features
3.3 Leather industry
3.4 Footwear industry
3.5 Some other leather products
3.6 Machinery/Technology
3.7 Risks and Threats
3.8 Industry Planning
3.9 Driving Forces and Forecasts
Contents
100
Development purposes
General purposes of the industry
Source: VIRAC summarized
3. Overview of Vietnam Leather- Footwear industry
3.8 Industry Planning
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Production volume
Source: VIRAC summarized
Strategic products planning
3. Overview of Vietnam Leather- Footwear industry
3.8 Industry Planning
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Investment planning
Material and auxiliary industries development solutions Market solutions
Some solutions implementing the plan
Total investment capital in planning period (VND billion)
3. Overview of Vietnam's Leather and Footwear Industry
3.8 Industry Planning
Source: VIRAC summarized
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103
3. Overview of Vietnam Leather- Footwear industry
3.1 History of Establishment and Development
3.2 Industry Scale and Features
3.3 Leather industry
3.4 Footwear industry
3.5 Some other leather products
3.6 Machinery/Technology
3.7 Risks and Threats
3.8 Industry Planning
3.9 Driving Forces and Forecasts
Contents
104
Domestic market Export markets
3. Overview of Vietnam Leather- Footwear industry
3.9 Driving Forces and Forecasts - Driving forces for development
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105
Labour cost comparison between some major footwear producer countries (USD/hour)
3. Overview of Vietnam Leather- Footwear industry
3.9 Driving Forces and Forecasts - Driving forces for development
Source: VIRAC, Chinaleather
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106
3. Overview of Vietnam Leather- Footwear industry
3.9 Driving Forces and Forecasts – Global forecast
Source: VIRAC summarized
USD billionGlobal footwear consumption forecast, 2015e - 2020f
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107
3. Overview of Vietnam Leather- Footwear industry
3.9 Driving Forces and Forecasts – Vietnam forecast
USD million Million pairs
Footwear sector scale forecast, 2010 – 2020f
Source: VIRAC
summarized
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3. Overview of Vietnam Leather- Footwear industry
3.9 Driving Forces and Forecasts – Vietnam forecast
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4. Enterprise Analysis
Contents
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110
Conpany Information
10 enterprises having the highest revenue in the leather and footwear industry
4. Enterprise Analysis
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111
Company Information
4. Enterprise Analysis
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112
Company Information
4. Enterprise Analysis
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113
4. Enterprise Analysis
VND Trillion
VND trillion
Source: VIRAC
Source: VIRAC
Net revenue, 2015 - 2016
Gross Profit, 2015 - 2016
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114
4. Enterprise Analysis
VND Trillion
Source: VIRAC
Source: VIRAC
Corporate Income Taxes, 2015 - 2016
Pou Yuen’s profits
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115
4. Enterprise Analysis
VND billion
Source: VIRAC
Source: VIRAC
VND billion
Selling expenses, 2015 - 2016
General & Administrative expenses, 2015 - 2016
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116
4. Enterprise Analysis
VND Billion
VND Billion
Source: VIRAC
Source: VIRAC
Self-financing rate, 2015 - 2016
Liabilities,, 2015 - 2016
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117
4. Enterprise Analysis
Turnovers Inventories days Total assets turnover Average collection period
Other indexes, 2016
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118
4. Enterprise Analysis
Source: VIRAC
Profit margin, 2015 - 2016
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119
4. Enterprise Analysis
Source: VIRAC
Solvency, 2015 - 2016
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120
Appendix: Financial Statements
Content
Pouyuen Vietnam Co., Ltd.
BALANCE SHEETS
Unit: VND million 2015 2016
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivable
1. Short-term receivables of customers
IV. Inventories
B. NON CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Current liabilities
1. Borrowings and short-term financial leased
liabilities
2. Taxes and other payables to the State budget
II. Non current liabilities
1. Borrowings and long-term financial leased
liabilities
2. Provision for long-term payables
B. OWNER’S EQUITY
TOTAL CAPITAL RESOURCES
INCOME STATEMENT
Unit: VND million 2015 2016
Net revenue
Cost of goods sold
Gross profit
Revenue from financing activities
Financial expenses
Interest expenses
Selling expenses
General & Administrative expenses
Income from operating activities
Net income before tax
Current corporate income taxes
Deferred corporate income taxes
Income after tax
Appendix
Financial Statements
121
Source: VIRAC
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Tae Kwang Vina Industrial Jsc.
BALANCE SHEETS
Unit: VND million 2015 2016
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivable
1. Short-term receivables of customers
IV. Inventories
B. NON CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Current liabilities
1. Borrowings and short-term financial leased
liabilities
2. Taxes and other payables to the State budget
II. Non current liabilities
1. Borrowings and long-term financial leased
liabilities
2. Provision for long-term payables
B. OWNER’S EQUITY
TOTAL CAPITAL RESOURCES
INCOME STATEMENT
Unit: VND million 2015 2016
Net revenue
Cost of goods sold
Gross profit
Revenue from financing activities
Financial expenses
Interest expenses
Selling expenses
General & Administrative expenses
Income from operating activities
Net income before tax
Current corporate income taxes
Deferred corporate income taxes
Income after tax
Appendix
Financial Statements
122
Source: VIRAC
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Chang Shin Vietnam Co., Ltd.
BALANCE SHEETS
Unit: VND million 2015 2016
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivable
1. Short-term receivables of customers
IV. Inventories
B. NON CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Current liabilities
1. Borrowings and short-term financial leased
liabilities
2. Taxes and other payables to the State budget
II. Non current liabilities
1. Borrowings and long-term financial leased
liabilities
2. Provision for long-term payables
B. OWNER’S EQUITY
TOTAL CAPITAL RESOURCES
INCOME STATEMENT
Unit: VND million 2015 2016
Net revenue
Cost of goods sold
Gross profit
Revenue from financing activities
Financial expenses
Interest expenses
Selling expenses
General & Administrative expenses
Income from operating activities
Net income before tax
Current corporate income taxes
Deferred corporate income taxes
Income after tax
Appendix
Financial Statements
123
Source: VIRAC
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Hwaseung Vina Co., Ltd.
BALANCE SHEETS
Unit: VND million 2015 2016
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivable
1. Short-term receivables of customers
IV. Inventories
B. NON CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Current liabilities
1. Borrowings and short-term financial leased
liabilities
2. Taxes and other payables to the State budget
II. Non current liabilities
1. Borrowings and long-term financial leased
liabilities
2. Provision for long-term payables
B. OWNER’S EQUITY
TOTAL CAPITAL RESOURCES
INCOME STATEMENT
Unit: VND million 2015 2016
Net revenue
Cost of goods sold
Gross profit
Revenue from financing activities
Financial expenses
Interest expenses
Selling expenses
General & Administrative expenses
Income from operating activities
Net income before tax
Current corporate income taxes
Deferred corporate income taxes
Income after tax
Appendix
Financial Statements
124
Source: VIRAC
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Pousung Vietnam Co., Ltd.
BALANCE SHEETS
Unit: VND million 2015 2016
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivable
1. Short-term receivables of customers
IV. Inventories
B. NON CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Current liabilities
1. Borrowings and short-term financial leased
liabilities
2. Taxes and other payables to the State budget
II. Non current liabilities
1. Borrowings and long-term financial leased
liabilities
2. Provision for long-term payables
B. OWNER’S EQUITY
TOTAL CAPITAL RESOURCES
INCOME STATEMENT
Unit: VND million 2015 2016
Net revenue
Cost of goods sold
Gross profit
Revenue from financing activities
Financial expenses
Interest expenses
Selling expenses
General & Administrative expenses
Income from operating activities
Net income before tax
Current corporate income taxes
Deferred corporate income taxes
Income after tax
Appendix
Financial Statements
125
Source: VIRAC
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Pou Chen Vietnam Co., Ltd.
BALANCE SHEETS
Unit: VND million 2015 2016
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivable
1. Short-term receivables of customers
IV. Inventories
B. NON CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Current liabilities
1. Borrowings and short-term financial leased
liabilities
2. Taxes and other payables to the State budget
II. Non current liabilities
1. Borrowings and long-term financial leased
liabilities
2. Provision for long-term payables
B. OWNER’S EQUITY
TOTAL CAPITAL RESOURCES
INCOME STATEMENT
Unit: VND million 2015 2016
Net revenue
Cost of goods sold
Gross profit
Revenue from financing activities
Financial expenses
Interest expenses
Selling expenses
General & Administrative expenses
Income from operating activities
Net income before tax
Current corporate income taxes
Deferred corporate income taxes
Income after tax
Appendix
Financial Statements
126
Source: VIRAC
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Thai Binh Holding & Shoes Manufacturing Company
BALANCE SHEETS
Unit: VND million 2015 2016
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivable
1. Short-term receivables of customers
IV. Inventories
B. NON CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Current liabilities
1. Borrowings and short-term financial leased
liabilities
2. Taxes and other payables to the State budget
II. Non current liabilities
1. Borrowings and long-term financial leased
liabilities
2. Provision for long-term payables
B. OWNER’S EQUITY
TOTAL CAPITAL RESOURCES
INCOME STATEMENT
Unit: VND million 2015 2016
Net revenue
Cost of goods sold
Gross profit
Revenue from financing activities
Financial expenses
Interest expenses
Selling expenses
General & Administrative expenses
Income from operating activities
Net income before tax
Current corporate income taxes
Deferred corporate income taxes
Income after tax
Appendix
Financial Statements
127
Source: VIRAC
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Vietnam Dona Standard Shoes Co., Ltd
BALANCE SHEETS
Unit: VND million 2015 2016
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivable
1. Short-term receivables of customers
IV. Inventories
B. NON CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Current liabilities
1. Borrowings and short-term financial leased
liabilities
2. Taxes and other payables to the State budget
II. Non current liabilities
1. Borrowings and long-term financial leased
liabilities
2. Provision for long-term payables
B. OWNER’S EQUITY
TOTAL CAPITAL RESOURCES
INCOME STATEMENT
Unit: VND million 2015 2016
Net revenue
Cost of goods sold
Gross profit
Revenue from financing activities
Financial expenses
Interest expenses
Selling expenses
General & Administrative expenses
Income from operating activities
Net income before tax
Current corporate income taxes
Deferred corporate income taxes
Income after tax
Appendix
Financial Statements
128
Source: VIRAC
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Vietnam Dona Orient Co., Ltd
BALANCE SHEETS
Unit: VND million 2015 2016
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivable
1. Short-term receivables of customers
IV. Inventories
B. NON CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Current liabilities
1. Borrowings and short-term financial leased
liabilities
2. Taxes and other payables to the State budget
II. Non current liabilities
1. Borrowings and long-term financial leased
liabilities
2. Provision for long-term payables
B. OWNER’S EQUITY
TOTAL CAPITAL RESOURCES
INCOME STATEMENT
Unit: VND million 2015 2016
Net revenue
Cost of goods sold
Gross profit
Revenue from financing activities
Financial expenses
Interest expenses
Selling expenses
General & Administrative expenses
Income from operating activities
Net income before tax
Current corporate income taxes
Deferred corporate income taxes
Income after tax
Appendix
Financial Statements
129
Souece: VIRAC
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Dong Nai Viet Vinh Shoes Co., Ltd
BALANCE SHEETS
Unit: VND million 2015 2016
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivable
1. Short-term receivables of customers
IV. Inventories
B. NON CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Current liabilities
1. Borrowings and short-term financial leased
liabilities
2. Taxes and other payables to the State budget
II. Non current liabilities
1. Borrowings and long-term financial leased
liabilities
2. Provision for long-term payables
B. OWNER’S EQUITY
TOTAL CAPITAL RESOURCES
INCOME STATEMENT
Unit: VND million 2015 2016
Net revenue
Cost of goods sold
Gross profit
Revenue from financing activities
Financial expenses
Interest expenses
Selling expenses
General & Administrative expenses
Income from operating activities
Net income before tax
Current corporate income taxes
Deferred corporate income taxes
Income after tax
Appendix
Financial Statements
130
Source: VIRAC
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REPORT DISCLAIMER
REPORT DISCLAIMER
This document has been prepared in good faith on the basis of information available at the date of publication without any independent verification.
VIRAC has produced this report for private circulation to professional clients only. All information and statistical data herein have been obtained from
sources we believe to be reliable and made to ensure the accuracy of the contents of the pages of the report at the time of preparation. Such information
has not been independently verified and VIRAC makes no representation or warranty, whether express or implied, of any kind with respect to the
document and its contents, information and materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal
and non-commercial use. You agree that you will not use this report for any purpose that is unlawful and that you will not reproduce the report or
redistribute it outside your organisation, or place it on a website for public access without the express written permission of VIRAC.
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Website: http://virac.com.vn/
Email: [email protected] | Tel: +84 463289520
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