At present, leather and footwear companies in Vietnam are mainly engaged in outsourcing and producing shoes for foreign businesses while there been not had many famous brands except for Banuli and Biti's. In terms of outsourcing, the profitability of footwear manufacturers is very low, and they are more dependent on the partner.

Another problem that the footwear industry has to face is raw materials. Currently, about 80% of raw materials are imported from abroad because no domestic business can produce their own materials. That leads to many unforeseen risks. Take an example from Minh Dieu Shoes Company, last week, the supplier announced that due to the supply and demand situation, raw material prices increased unexpectedly by 30-35% compared to May 2017 and there was even not enough raw materials to supply at new prices. Similarly, with the PU foam's price whole main ingredient to make up them is TTE is four times as much as the sam period of last year.

In reality, FDI footwear companies have not been reimbursed in billions of dollars, but all of their materials are self-contained or have their own supply sources. From the beginning, Vietnam has not developed appropriate policies in this field. For the countries, they have clear regulations: in the first time the footwear businesses have to invest everything by themselves, enjoy the preferential policies but in each period, the enterprises must localize to use local materials to create jobs for local people, etc. However, our country is lacking of these regulations. Therefore, over decades, large footwear companies in the leather and footwear industry have been self-operated, only hired Vietnamese workers. When the demand is low, domestic enterprises want to enter into auxiliary industry but there is no market for the products. Therefore, the development of footwear industry requires a synchronous development from the auxiliary industry.

In addition, in order to develop supporting industries, the footwear industry itself has to develop first. This is a difficult problem like the story that the chicken has first or the egg has first. Normally, we have to go from the available ones such as from the footwear manufacturing establishments, they have available market, technology, machinery, experience ... and they also need a roadmap to transfer and attract the domestic footwear market. Just like the car industry, until now we have nothing because there are no mandatory policies, so Vietnamese enterprises mainly assembled, but not able to produce by themselves.

To stimulate all of that, it is important to have a healthy economic environment and the right development needs. All foreign investment encouragement policies for important products, the government needs to re-examine the obligations and responsibilities of those investors for the domestic market. If the Government has no clear orientation, the economy in general, the footwear industry in particular is difficult to show its role and instinct.