( CNN ) -- To better understand Portugal 's economic challenges look no further than Guimaraes ; its oldest city and the cradle of my nation . In the 1980s and 1990s , this city was an industry boom town with factories lining the valley . Today many of these are gathering dust while others rust , as the economic crisis and competition from China take their toll . But despite the doom and gloom , there is one Portuguese industry that 's making great strides . Read more : Islam and democracy can work in EU , says Turkish Deputy PM . Shoemaking , one of the most traditional and oldest industries in the country , is mapping out a new future by exporting its way out of the crisis . And some are discovering new ways to gain traction overseas . We visit a shoemaker where , on one of the factory floors , workers stitch , sew , glue and lace up the company 's product . The shoes range from the practical and functional , to outright edgy . Read more : Finnish PM : Eurozone nations must follow the rules . Stamped on the side of each shoe is a sketch of a fly . This is the company 's logo , and its brand name is Fly London . It 's entirely `` Made in Portugal '' -- but distinctively un-Portuguese . Others such as Nobrand , Camport , Eject , Mack James , and Softwaves have also chosen to have an Anglo-Saxon ring to them , so they can stand out in the very competitive market . Read more : Auto industry revs up recovery on Spain . Alfredo Moreira , the executive director of the Portuguese Footwear and Manufacturers Association , tells me the decision to use Anglo-Saxon names fits perfectly with today 's open and globalized economy . He told me `` competition is tough , '' adding , `` companies have to think in a very globalized way . '' It 's a strategy that has helped drive growth , with 97 % of output now going to about 130 countries . To better understand their export market , I visit Fly London 's new warehouse . I find boxes upon boxes of Fly London shoes , ready for delivery to Croatia , Denmark , Italy , UK , U.S. , Russia and Angola , among many other countries . Read more : GE Europe chief eyes investment in Germany . But Fortunato Frederico , managing director of Fly London , tells me selling abroad requires more than just a foreign name . It requires investment in new and advanced technologies , better quality products , spending on international promotion and updated workforce skills . During my tour of Fly London 's factory , Frederico tells me they 're installing new technology which will make the ordering process smoother and faster . Portuguese shoes are now the second most expensive in the world , behind Italian shoes , according to industry group APPICAPS . Marketing drives and innovation has helped grow the industry 's exports by 6 % every year for the past five years . For the Portuguese government , which has been pinning its hopes on traditional sectors such as this one , the industry offers a glimmer of hope for a country trying to get out of its debt quagmire . And with the Portuguese economy expected to shrink by 2.3 % this year , industries like this are more than just examples of innovation -- they are the glue holding a fragmented economy together .
Despite economic gloom , one Portuguese company is expanding its export market . Shoemaking , one of country 's most traditional industries , is mapping out a new direction . Some are discovering new ways to gain employment , such as adopting Anglo - Saxon names . It 's a business proving its value , with employment in the industry growing 6 % a year .