The footwear and handbag industry aims to reach export revenue of US$24 billion in 2020, after hitting $22 billion last year, the industry association said.
Shoes produced at Sao Viet Company in Binh Duong Province's Di An Industrial Zone.
According to Viet Nam Leather, Footwear and Handbag Association (Lefaso), footwear export revenue was expected to reach $20 billion while handbags achieved $4 billion this year.
Nguyen Duc Thuan, Lefaso’s president, said foreign-invested producers remained the major driver for footwear and handbags, citing statistics that foreign-invested firms accounted for 75.8 per cent of the sector’s export revenue in 2019
The industry, however, saw a slight expansion of domestic producers in recent years, accounting for 24.2 per cent of the export revenue in 2019, from 19.7 per cent in 2017 and 21.6 per cent in 2018.
Thuan said that the US-China trade war would continue posing risks to Viet Nam’s footwear and handbag exports.
Deputy Minister of Industry and Trade Cao Quoc Hung said that the Government would continue to provide support for footwear and handbag firms in expanding markets and improving production capacity.
The ministry was developing a strategy to turn leather and footwear into a spearhead industry for export.
Hung also urged footwear and leather firms to take advantage of opportunities from free trade agreements while preparing for challenges from uncertain global and regional trade developments.
He also said firms should be proactive in renovating technologies and enhancing their production capacity as well as focusing on market research and development.
The industry reached an export revenue of $22 billion in 2019, representing a rise of 12.2 per cent over the previous year. Up to $18.3 billion of the export revenue came from footwear exports and $3.7 billion from handbags.
The US was the largest market for Viet Nam’s footwear and handbag products, with a revenue of $7.41 billion (up 13 per cent) in January-November, followed by the EU with $5.418 billion revenue (up 7.2 per cent) and China at $1.776 billion (up 19.3 per cent). — VNS
Vietnam the third-largest country in the world in terms of footwear production, conference hears.
Leather and footwear exports will reach over US$22 billion this year, as Vietnam is expected to overtake China as America’s number one supplier in these sectors.