Shift of tanning in Asia

The Ron Sauer blog
Published:  10 July, 2014

Looking at wages, which are now so much lower in most Asian countries compared with China. Also, I notice that more and more shoe production is increasingly moving out of China and looking at the attractive possibilities that the China-Asean Free Trade Agreement offers places such as Vietnam, Cambodia, Myanmar, Indonesia etc. 

Coupled with this, many tanneries currently based in China which need to be re-equipped or upgraded with up-to-date effluent treatment facilities, etc. one begins to wonder if it is not more financially interesting to build new tanneries in other Asean countries of the Free Trade Agreement instead of doing old tanneries up in China?

In Vietnam for instance where the leather industry is already looking for ways to produce more of the raw materials (finished leather) needed for the country’s shoe industry instead of importing it all in from other countries, as is the case right now. 

It will be interesting to see how the tanning industry in China and across South East Asia continues to evolve.

Ron Sauer

theSauerReport.com

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